Monday, June 3, 2013

DVY Mechanical System comments

DVY - Chart Link - taken quite a hit lately, logical because of the recent move in long term rates and bonds.

I bring this up because DVY is one of the Reversion to Mean systems in our 'Tradestation Systems' section of the website, it hasn't had a trade in a long time, since January.

This is a reversion to mean system using a standard 2 length RSI for the signals. However this one is more stringent, it needs the 2 RSI to close below 10% for two days in a row in order to take a position - therefore while the 2 RSI has been below 10% a couple of times recently, it hasn't had two consecutive closes below 10%.

Today if the 2 RSI closes below 10%, it will only be the first day - it still needs tomorrow to close below 10% as well in order to take a long position.

This system has 90% winning trades

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