Bullish Reversal Strategy – (Backtest and Rules)

In this video, we'll be discussing the Reversal Day Trading Strategy (with complete rules and backtest), which aims to help traders make money on turnarounds. We'll be covering the complete rules for both bullish and bearish reversal day strategies, and backtesting them to see their efficacy.

We start by discussing the rules for a bullish reversal day, including the low being lower than yesterday's low, the close being higher than yesterday's close, and the five-day RSI being lower than 35. The green arrows on the chart indicate when to buy, and the red arrows show the exit after 5 days. We'll then discuss the trading statistics for this strategy in gold (GLD), using Amibroker's optimizer function and exiting after 1 to 25 trading days.

Next, we'll flip the rules for a bearish reversal day strategy, where the high is higher than yesterday's high, the close is lower than yesterday's close, and the five-day RSI is higher than 65. Again, we'll discuss the trading metrics for this strategy in gold (GLD), using the optimizer function.

We'll conclude by comparing the two strategies and discussing the factors that make it harder to trade from the short side, such as gold's long-term upward bias. We'll also mention that subscribers can access the code, courses, and more on our website.

If you're interested in learning more about the Reversal Day Trading Strategy and other trading strategies, please like and subscribe to our channel. Good luck with your trading!

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You can read more about it here:
https://www.quantifiedstrategies.com/reversal-day-trading-strategy/

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