The Rocket Science Investing Trading System

The RSI Exchange Traded Fund (ETF) system is patterned after the famous Turtle Trading System (TTS). The original Turtle System was developed in the early 1980s. It was a highly successful trading system and the system and those those who developed and traded it are legends. Some of the important distinctions between RSI and TTS:

• Both systems are based on the tenants of evidence based technical analysis
• Traders of TTS traded and monitored their positions throughout the day, while RSI is an end-of-the-day system with actions required after the market opens the following day
• RSI was developed to trade ETFs and TTS was developed to trade commodity & futures
• Both RSI & TTS utilize position sizing in order to balance and control risk
• TTS operated on 22 selected futures contracts while RSI operates on a universe of several hundred ETFs
• TTS utilized a trend-following methodology the Donchian Channel, while RSI utilizes a multi-faceted system that includes trend-following, counter-trend, and price excursion modules
• TTS had rules to minimize and control trade correlation. RSI does not explicitly control position correlation
• Both RSI & TTS have explicit stop loss and trade exit rules