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TSI indicator strategy

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I’m recently backtesting a strategy based on TSI indicator crossovers. I’m trading this on 1m-5m timeframes and with a very tight risk managenmrnt strategy. The goal is for it to catch fast bursts (accept loss or breakeven if no burst). The thing is, most of the time it performs really well but there are times when the market seems to be completely against this strategy. Its rare, but sometimes, after thr crossover, the market gets stucked and take loss or breakeven. Is there another indicator or technique that i can add to tho the TSI that can confirm me that the following movement is going to be a “burst” or not? I am currently trying this with a margin short/long changes custom indicator.



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3 thoughts on “TSI indicator strategy

  1. ViperRT10Matt

    What you have noticed is common to just about every strategy out there. It works pretty well most of the time, but when it doesn’t work, it’s a disaster. You will notice this especially with market making strategies. You do just fine 98% of the time, but the 2% of the time that things don’t go well, absolutely destroy you. Unfortunately there is generally no magic bullet that smooths this over… all you have really succeeded in doing is finding the reason why everybody isn’t using whatever this thing is. But that piece of education is not a terrible thing altogether.

    Reply
  2. Commonboiiii878

    How many free variables do you have? How did you optimize your strategy?

    Your best bet may be to increase the candle time length if you’ve had a couple bad trades in a row, but I can’t say for sure without knowing more

    Reply
  3. ncens

    You need some sort of a risk-management layer on top. Run some monte carlo simulations first and see what kind of situations you need to make an early exit on.

    Reply

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