More New Rules

Take a look at this chart.… On 5/27, a lookback low is noted. But --as we have decided-- the following day does NOT initiate a ‘Buy’ signal, because prices closed ‘down’ on the day.

Now, look at the same ticker a couple weeks later.… No lookback low is marked on 6/27, but two interesting things happen on 6/28. Prices closed above the MA pair and StochRSI closed above 20. So this question needs to be asked. “Has a ‘Buy’ signal occurred?”

I’d say 'Yes", and the following days rewarded an entry. But the setup isn’t covered by Quill’s version of Simon Says. Therefore, let’s call Quill’s version the “strict” version and my version the “relaxed” version.

This is my guess, which I haven’t yet backtested. Using the strict version means there might be fewer opportunities, but they might have a higher success rate. If you’re more of an ‘investor’ than a ‘trader’, you should stick with that. But if you’re more of ‘trader’, and if you’re absolutely ruthless about chopping losses fast, you might prefer the relaxed version.