In this video, we provide a brief introduction to the 'RSI Optimization (Butterworth Filter)' page, which is part of the 'Filtering' toolbox within the ‘Market Signals, Trading Indicators & Charting Tools’ module.
This page lets you explore how adjusting the RSI period and how applying a Butterworth filter to price signals can dramatically smooth the RSI (Relative Strength Index), reducing noise and making your trading signals clearer and more actionable. We also show how to develop, optimize, and validate a simple algorithmic trading using the RSI with a period of 5 and showing how this algorithm can reveal more reliable patterns and improve your trading decision-making.
We take a specific example using the Nasdaq-100 where we show that the presented algorithm delivers 18 trades, with 61% win rate, with a profit factor of 23.4 over a long period spanning January 1998 until May 2025.
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This innovative Dashboard offers a comprehensive suite of data-driven investment tools, market signals, and trading indicators — presented through interactive visuals and detailed text. Key features include: Classical Indicators, Frequency-Domain Filtering, Wavelets Filtering, Seasonality Analysis, Trend & Mean Reversion, Cointegrations, Pairs Trading, Return Analysis, Volatility Analysis, Linearity, Nonlinearity, Stationarity, Randomness, Tops & Bottoms, Fractals, Chaos, Wavelet Spectrograms, Agent-Based Models, Econo-physics, Correlations, Diversification, Risk-Return Trade Offs, Portfolio Optimization, Portfolio Performance Evaluation, Recommended Portfolio Allocation, Model Portfolios, and much more.
Built for traders, investors, researchers, and educators, our Dashboard's content empowers you to uncover financial market patterns, make informed and optimized trading and investment decisions, and gain a decisive competitive investment edge!
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