Our first trading strategy that we're going to learn about is something we're going to refer to as the
momentum strategy in this strategy, very simply will utilize the RSI, Mac D and stochastic functions
that we created in our previous section to create a data frame that will allow you to analyze all three,
make sure they're confirming each other for momentum and direction, and then create buy points to do
this.
We're going to create a notebook, and inside that notebook, we're going to reference and outside an
additional outside notebook, which will contain our RSI, Mac D and stochastic functions.
We're going to create a new function that will call R R Y Finance module, grab data for a given security.
We are then going to take in that same function, pass over the certain portions of the created data
frame to our referenced functions to grab our RCI, Mac D and Stochastic.
We're going to append those to that data frame.
And then we are going to look for them to confirm each other and create a new column which will be looking
for our entry points.
So in this example, you can see on the slide here that we listed out what we're going to be looking
for, but we're going to get into that detail.
So don't worry if it if it doesn't make too much sense here based on the wording, but some things I
do want you to pay attention to on this slide before we jump in.
So I do want the user to fully understand what we do when we get in there and when we create the strategy,
and we kept the notebook small to make sure that, you know, it's it's very legible.
You can kind of get the gist of what's going on without putting too much into the the user's plate at
once.
But some things that I would recommend, you know, suggestions for improvement to what we're going
to show you is that you get familiar with it and that you try to look for your own patterns.
So change around some of the indicators in the metrics and things we're looking for.
So, you know, change your RSI instead of 14 or twenty one, make it twenty five.
See what that does to your metrics and see how often that gives you entry points as compared to smaller
RSI is maybe two, three or four change around your stochastic, your Mac DX.
We're going to mess with slopes when we get into this, so we're going to mess with looking at things
in there.
Are they headed in the right direction?
So maybe you want to look for similar things.
Maybe you want to look for short opportunities, maybe you want to look for things to diverge or converge.
All of these are available, and I encourage the users, you know, to take this section and not only
learn it, but also to to try your own things.
You know, look for your own patterns and then make sure you really understand what is coming out and
then, you know, push the data to excel, test and excel and see, OK, this would have been an entry
point.
This would have been an exit point and really confirm what you're looking at so that you have a really
good grasp of this section.
Right?
With that, let's go ahead and jump into our lives.
Look.