RPS Trading Signals & Backtesting

10월 27일

https://www.tradingview.com/x/kNoQOond/
Overview:
The Enhanced Relative Price Strength (RPS) Indicator is designed for trend traders looking to identify the relative strength of stocks within a select universe. By comparing the price movements of chosen stocks over a specified period, this indicator helps traders make informed decisions about potential buying and selling opportunities.

Key Features:

Relative Strength Ranking: Our RPS indicator ranks the price performance of individual stocks against a curated selection, enabling users to pinpoint which stocks are exhibiting relative strength or weakness.

Customizable Stock Universe: The script evaluates 40 stocks, which include 30 high-weight NDX100 stocks, 4 major index ETFs (SPY, QQQ, DIA, IWM), and allows for the addition of 6 user-defined custom stocks.

Dynamic Color Gradients: The visual representation of the RPS score utilizes a gradient color scheme ranging from purple at low scores to red at high scores, leveraging the color for clear, immediate insight into stock performance.

Threshold Visualization: Users can set specific high (default 85) and low (default 15) thresholds for RPS, highlighted with solid line indicators and area fills. This visual aspect aids traders in quickly spotting entry and exit points.

Trading Signal Generation: The script includes logic for generating buy and sell signals according to defined RPS behaviors relative to the set thresholds, factoring in market conditions based on a long-term moving average.

Backtesting Capabilities: Users can backtest trading signals by inputting desired start and end dates, allowing traders to evaluate the effectiveness of the RPS strategy on historical data for various assets including stocks and cryptocurrencies (e.g., NVDA, LLY, GOOG, BTC, ETH, SOL).

User-Friendly Options: The script allows for adjustments such as moving average lengths, visibility of trading signals, and fills for ease of use and customization according to trading preferences.

How It Works:
The RPS Indicator functions by calculating the performance of stocks relative to each other. Based on the RPS trends, the indicator identifies when to enter or exit trades, providing a framework to capitalize on market movements.

Conclusion:
The Enhanced RPS Indicator aims to empower traders with a powerful analytical tool in their arsenal, tailored to simplify decision-making and bolster trading strategies. As this script evolves, we encourage feedback and collaboration from users to refine and enhance its capabilities further.

Trade Less, Earn More!