New Strategy and Trade of the Day
Create ratios of near arbitrage and near substitute pairs and use the RSI2 for entries and exits.
For longs: when the RSI2 of the ratio of the pair is below 20, go long and cover above 50
For shorts: when the RSI2 of the ratio of the pair is above 80 go short and cover below 50.
Trade of the Day:
VNQ:IYR (The REIT index vs the Real Estate Sector) RSI2=88
Short VNQ Buy IYR
Cover when the RSI 2 of the ratio of VNQ:IYR crosses below 50 (type in VNQ:IYR on http://www.stockcharts.com its free)