Simple trend trading signals have the best chance of having an edge as they create big wins and small losses by their structure of letting winners run and cutting losers short. Also, adjusting a trend signal that is a positive expectancy model with a simple filter can improve its risk/reward ratio. A trader will have to understand how it may alter both the size of losses and the size of winners from a backtest of the original system. Some adjustments can be backtested with the new parameters and others involve a discretionary dynamic to a mechanical system. The traditional view of the RSI is as an indicator of when ... (full story)