FUTURES TRADING

We add the Dynamic RSI as an indicator.

• The Dynamic RSI (Relative Strength Index) is an oscillator.
• This indicator represents the value of the RSI indicator together with two bands calculated from the average of the last values of the RSI using the standard deviation that is multiplied by a factor that is used as the parameter of the indicator. This added to the value of the average gives the value of the upper band and subtracted from the same average procures the value of the lower band of the indicator.
• Interpretation of the indicator: If the RSI (green line) leaves the bands upwards, the market is overbought and an downward reaction is to be expected. If the RSI leaves the band downwards, the market is oversold and an upward trend could be forming.

• WHS FutureStation allows the interpretation of the indicator to be modified. We want to open a long position as soon as the oversold situation ends and the RSI moves back into the bands. A short position is to be taken if the RSI moves back into the bands after indicating an overbought situation.
• To obtain this result we edit the interpretation of the indicator: Crossing Below Upper Band gets a value of 0. This means a position is to be sold. Crossing Above Lower Band gets 100 as value. This means a position is to be bought.