Performance Page Portfolio: The RSI Daily System

Sept. 2, 2024

In past two Newsletters, we’ve taken a deep dive into the Performance Page Portfolio (PPP).

As you know, this is a Futures-Only portfolio that uses three index strategies and one Gold.

And we have two more portfolio members to go.

Here again is our updated benchmark for SPY in 2024 (as of this writing):

Last week’s late surge has taken the SPY up to 20%. That’s the line to beat.

The third strategy we’re using is the Daily RSI system (on the ES.D chart, or the ES chart with custom sessions; they’re the same thing). The details for this system and the two other ES strategies can be seen here.

Why do we want this?

This system gets in on pullbacks with less noise. Pullbacks are different with different indicators and pullbacks on the Daily chart are more gradual than smaller timeframe charts. Buying retracements in the U.S. stock market has been a good idea for many decades. This system gets in a little differently but uses the same principles.

We still want to “buy when others are fearful”.

What’s great about this system?

It uses value investing principles and allows us to buy when the market is hesitating. And we’re hoping the different entries lead to some nice smoothing of the Equity Curve.

It also has a negative reward to risk ratio which just might be the best way to trade. 

What’s bad about this system?

It has a high win rate but we know what that means.

The bad trades are going to be expensive.

One losing trade will erase many winning trades.

Additionally, this system doesn’t trade much. We have to wait for the trend to be up, then we have to wait for a deep-enough pullback. On Daily bars, this will only happen a handful of times each year.

Last, this won’t do well in a quick and deep bearish market.

How has this system done since 2016 trading 1 contract each time (via Portfolio Architect)?

Here’s the Curve on a hypothetically aggressive $20k account:

Has it beaten the market on its own since 2016?

They’re pretty much even. Although this system has a much lower drawdown for the same amount of return.

If you’d like the Tradestation code for all 4 strategies, I’m temporarily offering a special price of $199. Just send $199 to me via PayPal at scotwelsh@gmail.com before September 3rd and I’ll email you the ELD. The price will be over $500 after this week.

And I give away the details to the strategies for free in the YouTube videos if you want to build them yourself.

We’ll go over the last PPP member in the next Newsletter.

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Get Robot information HERE.
Visit my Performance Page HERE.
Buy my new book HERE.
The Inevitability of Becoming Rich is HERE.
My latest YouTube video is HERE.

Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.