RSI of VWAP [SHORT selling]

This is SHORT selling version of RSIofVWAP strategy. Settings and Logic are totally different from LONG side version , hence I am publishing it as a new strategy.

VWAP of RSI Length 15

Slow EMA Length 200

Short entry level 25

Cover short level 70

stop loss 5

condition1 : When RSIofVWAP crossdown below 25 and VWAP is below ema200

condition2: When weekly RSIofVWAP crossdown 70 and VWAP (note : session vwap , not weekly vwap ) is below ema200

condition3: Use VIX value , if you want to short when the price is above ema200
vwap RSI crossing down 70 and VIX RSI is cossing up 70

enter short ... This is like falling knife :-)

I need to add the code -- later
if any of above condition is TRUE , SHORT entry will be taken

Take Profit
When close less than short entry price and RSIofVWAp is crossing up 25 , take profit ...close 1/3 of the position

When RSIofVWAP crossing up 70 level

Stop Loss

Stop Loss is set to 5%

1. When strategy is in SHORT position , background and bar color changes to gray
2. When strategy is already in short position , possible entries are shown in yellow background
3. RSI Length 15 is working most of the equities on hourly chart. ( RSI length 9 and 14 also works good , but not for all ... You may want to try which setting works for your symbol)
4. weekly VWAP (blue color) is also plotted by default ... you can disable it if you dont want to see it. But there is advantage keeping it on the chart , you can notice whenever weekly VWAP crosses above 70 line , trend is UP ... if you have LONG position you can hold on it ... Hurray :-)

For the educational purposes only
Release Notes: I have added check VIX paaremeter. When this is selected , strategy only checks whether VIX reading is rsisng and above 60. This setting gives advantage of volatility in the market , which boosts the over all performance SHORT selling trades.

RSI Length has been adjusted to 11

Please note this is tested for SPY on hourly. for your equity / asset and timeframe , adjust the settings accordingly

Have fun :-)
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Thanks a lot!
+1 Reply
when I check Ultra Pro ( 2xBull of SPY) , it showed more net profit. But drawdown is also more than SPY test results.

I dont recommend this , but I wanted to share the results with you ...

I believe , market drops so fast , may be loading with SPY PUT options be good idea to get out even with 1 or two points. Dont take this as my recommendation , Please do your own research

QQQ with latest setting checkVix turned on