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Algorithmic Trading Strategy Development
A detailed conversation about creating algorithmic trading strategies, including dollar-cost averaging for SPY and an aggressive RSI crossover strategy for NVIDIA, along with backtesting results.
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Aurora
Hello. Would you like to create a new algorithmic trading strategy?
User
Create a portfolio that buys $500 of SPY every week
Aurora
I'll help you create a portfolio that implements a dollar-cost averaging strategy for SPY on a weekly basis. This strategy will check if 7 days have passed since the last purchase before buying more SPY.
Description:
This portfolio implements a systematic investment approach known as dollar-cost averaging (DCA) with SPY, an ETF that tracks the S&P 500 index. The strategy will invest $500 in SPY every week, specifically checking if 7 days have passed since the last purchase. This approach helps reduce the impact of market volatility by spreading investments over regular intervals, regardless of market conditions. The strategy uses the DaysSinceOrder indicator to track the time since the last purchase, ensuring consistent weekly investments.
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User
Create a portfolio with a strategy to do RSI Crossover on NVIDIA. Limit the buys to every 2 weeks
Aurora
I'll help you create a portfolio using the Relative Strength Index (RSI) strategy for NVIDIA (NVDA), with a time restriction between purchases to prevent overtrading.
Description:
This portfolio implements an RSI crossover strategy for NVIDIA stock (NVDA), with a built-in time restriction to prevent excessive trading. The strategy buys NVDA when the RSI drops below 30 (indicating oversold conditions) and sells when the RSI rises above 70 (indicating overbought conditions). To manage trading frequency, the strategy only allows new purchases if at least 14 days have passed since the last buy order. This combination of RSI signals and time-based restrictions helps identify potential entry and exit points while maintaining a disciplined trading approach.
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User
Don't limit the buys anymore, and be more aggressive when buying
Aurora
I'll help you create a more aggressive RSI-based strategy for NVIDIA (NVDA) without time restrictions between trades.
Description:
This portfolio implements an aggressive RSI strategy for NVIDIA stock (NVDA). The strategy will buy NVDA more aggressively when the RSI drops below 40 (instead of the traditional 30), investing a larger amount ($5,000) to capitalize on potential oversold conditions. It will sell when the RSI rises above 70, indicating overbought conditions. By removing the time restrictions and increasing both the RSI buy threshold and investment amount, this strategy becomes more aggressive in capturing potential upward movements while still maintaining the sell discipline at overbought levels.
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User
Backtest this from covid to now