Strategy Logic

The Dual RSI strategy trades using two Relative Strength Index (RSI) indicators, a fast RSI and a slow RSI, both allowing trades in the same direction.

The logic is:

1. Calculate a fast RSI (e.g. 16 period) and slow RSI (e.g. 31 period)

2. Long signals are generated when the fast RSI crosses below oversold level (e.g. 30)

3. Long signals also triggered when the slow RSI crosses below oversold level

4. Fast and slow RSI can both signal longs on the same day

5. Fast RSI closing above 70 exits the trade

6. Slow RSI closing above 68 exits the trade

7. A trailing stop loss is set

The dual RSI identifies opportunities in overbought/oversold regions. Combining fast and slow lines allows multi-step entries to ride trends. The stop loss controls risk.

Advantages

• Fast/slow RSI validate and reduce false signals

• Multi-step entries to fully capitalize on trends

• Different profit take and stop loss levels

• Trailing stop further manages risk

Risks

• Requires optimization of the RSI parameters

• Dual entries increase risk exposure

• Stop loss too close risks getting stopped out

Summary

The dual RSI strategy utilizes two timeframes for entries while controlling risk. Parameter optimization and strict stops are key. Overall it suits trend-following of mid- to long-term directional moves.