ActiveTrader 2010-02 | RSI scale-out system [Rev.C] by Eugene

Rev.C: fixing an error in the split exit logic
The original intent was to exit equal portions over 4 exits, but the split logic instead sold the most part on the RSI-45 signal, exiting in minor parts then.

System Concept:
This long-only system focuses on an exit technique that uses the relative strength index (RSI) to scale out of trades. Trades are exited in stages based on the RSI level rather than price level.

Strategy rules:

1. Buy at tomorrow's open when the 14-period RSI goes below 30.
2. Exit a quarter of the position at tomorrow's open each time the 14-period RSI increases by 15 points (e.g., 45, 60, 75, and 90).
3. Exit the entire position when price falls below the entry price by five times the 20-day ATR.
4. Exit the entire position at the market after 300 days of inactivity (i.e., no exit condition has triggered).

Author: Eugene
Category: Dip Buyers
Creation Date: 10/12/2010
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"