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ta-oliver / infertrade

Open source trading and investment strategy library designed for accessibility and compatibility
Apache License 2.0
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STOCHASTIC RSI - DOCUMENTATION (DESCRIPTIONS OF EXISTING RULES/INDICATORS) #198

Closed Cal231995 closed 3 years ago

Cal231995 commented 3 years ago

What Is the Stochastic RSI? The Stochastic RSI (StochRSI) is an indicator used in technical analysis to identify overbought and oversold signals. It ranges between zero and one hundred and is created by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to standard price data. An asset is considered oversold when the stochrsi values is below 20 and considered overbought when the stochrsi value is above 80.

FORMULA: stoch rsi formula

Allocation Strategy: The strategy is to identify overbought and oversold signals.

OVERBOUGHT : when StochRsi is above 80. OVERSOLD : when Stoch Rsi is below 20.

STOCH RSI PROCESS

The theory suggests that an asset will have an overbought and oversold signals if StochRSI value < 20: position = max_investment

if StochRSI value > 80: position = -max_investment else: allocation = 0

Cal231995 commented 3 years ago

@bi-kash please check if the allocation strategy is the same with the existing codes. Thanks