SPY modified Triple RSI dip-buy (above the 200-day)
Buy SPY after a three-day slide in short-term RSI while the long-term trend is up, and sell when RSI recovers above 50.
What they did
QuantifiedStrategies backtested SPY since 1993 in AmiBroker with four entry conditions: 5-day RSI below 30, 5-day RSI down three days in a row, 5-day RSI below 60 three trading days ago, and close above the 200-day moving average. Buy at the close; exit at the close when the 5-day RSI crosses above 50.
How it went
Per the author: 83 trades since 1993, 90% win rate, average gain 1.4% per trade. They note the sample size is relatively small.
Sources:
Worth knowing
- 83 trades in 30+ years is about 3 a year. Expect long idle stretches.
- No stop loss is part of the rules, and drawdown isn't stated in the post. Decide your own worst-case exit.
- Entry and exit happen at the close, so your agent needs to act in the last minutes of the session or use market-on-close orders.
- Backtest only. Costs and slippage aren't stated in the post.
The prompt
Monitor SPY on daily bars. Shortly before the close (around [3:50 PM ET]), compute RSI(5) and the 200-day simple moving average using today's near-close price.
Entry (all four must be true, and I'm flat):
1. RSI(5) < [30]
2. RSI(5) has fallen for 3 consecutive days
3. RSI(5) three trading days ago was below [60]
4. Price is above the 200-day moving average
If so, propose buying $[amount] of SPY at the close (market-on-close or a limit near the last price).
Exit: near the close on any day RSI(5) crosses above [50], propose selling at the close.
Optional protective stop: [none / X% below entry / exit after N days].
Each day report RSI(5), its 3-day trend, the 200-day MA, and whether each condition passes.
SAFETY DEFAULTS (keep unless you deliberately change them):
- Use the PAPER trading account only. Never touch a live account.
- Before every order, show me: symbol, side, size, order type, limit price, stop, and the rule that triggered it. Then WAIT for my "approve".
- Hard limits: max [$500] per trade, max [3] open positions, stop all trading for the day after a loss of [$300].
- Log every signal, decision and fill to [a running log / spreadsheet] with timestamps.To go fully autonomous: (1) run on paper for at least [4–8 weeks] or [30+ trades]; (2) delete the 'WAIT for my approve' line and keep the hard limits; (3) switch to live keys or account. On Robinhood, turn off trade approvals in your agent settings, but note that some orders can still require in-app approval or acknowledging a pre-trade alert, so unattended execution isn't guaranteed for every order. On IBKR, standard AI Integration asks for approval on every order. Its new Autonomous Trading mode (eligible individual non-margin accounts, after 10 approved trades) lets the AI trade a funded AI Partition without per-order approval. Never remove the daily loss limit.