This is the third of a continuing series on my thoughts on trading the STI with CFDs. (See Parts One Two and Three)

Thanks to the handful of you who emailed in your earnest questions so far. It is encouraging to hear from both relatively experienced and relatively fresh perspectives, although I have yet to find another investor who is also investigating quantitative strategies with Matlab.

Diving right in

Here is RSI. The variables I played around with I call the “Overbought/Oversold Threshold” and the “Number of Periods”. So for example the standard RSI (as mentioned by wiki) OOT is 20 and the number of periods is 14. As per my earlier discoveries my usual trading strategy for RSI is to invert the buy and sell signs. So for example, when the calculated RSI is 80, I buy instead of short. Playing around with the variables ...