Cumulative RSI Strategy

Explore the Cumulative RSI Strategy for S&P 500 (SPY) trading on a Daily timeframe. This strategy uses Cumulative RSI signals with a 200-day moving average tren

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily
  • Markets: S&P 500 (SPY)

Indicators used

  • Cumulative RSI
  • Moving Average

Source video

Decoded from: Cumulative RSI Strategy (83% Win Rate) by Quantified Strategies — watch the original

Key timestamps:

  • 0:10 - Introduction to Cumulative RSI
  • 0:35 - How Cumulative RSI works
  • 1:00 - Calculation of Cumulative RSI
  • 1:30 - Strategy rules introduction
  • 1:35 - Trend filter rule
  • 1:40 - Long entry rule
  • 1:45 - Exit rule
  • 2:00 - Backtesting results (win rate, drawdown)

Strategy overview

A moving average is most often used to define the prevailing trend, and in this strategy it plays exactly that gatekeeping role — but the entry trigger comes from a less common tool: cumulative RSI, a variant that aggregates the standard RSI across several consecutive days instead of reading it one bar at a time. The result is a slower, steadier oscillator designed to filter out the single-day noise that makes a raw RSI reading so easy to second-guess.

The video, "Cumulative RSI Strategy (83% Win Rate)" from Quantified Strategies, comes from a channel built around backtesting and explicit, rule-based systems rather than discretionary chart-reading. Its walkthrough follows a familiar mean-reversion shape: use a long-term moving average to confirm the market is trending up, then wait for the cumulative oscillator to reach an oversold stretch before looking to buy the pullback. Weakness, in other words, is only bought inside strength — the trend filter and the timing oscillator are meant to work as a pair, not in isolation.

The "83% win rate" in the title is worth reading carefully. A high hit rate describes how often trades close green, but says nothing on its own about the size of the average win versus the average loss, or the drawdown taken to get there — all of which decide whether a system is actually workable. The concept is simple to state, which is exactly why it rewards testing the precise definition of the trend filter and the oversold trigger against your own data before treating any headline number as settled.

Topics

cumulative rsi strategy · rsi trading strategy · trading strategy · pine script · technical indicators · tradingview strategy · spx trading strategy · spy trading strategy · daily timeframe strategy · swing trading

Frequently asked questions

What is the Cumulative RSI in this strategy?

It's a variant of the standard RSI that aggregates the indicator over several consecutive days rather than reading a single day's value, producing a smoother, slower oscillator used to time entries. In this setup it is paired with a moving average that defines the overall trend.

How is cumulative RSI different from a regular RSI?

Regular RSI reacts to the most recent bar and can flip quickly, which produces frequent signals. Cumulative RSI combines multiple days of readings, so it moves more slowly and is less prone to the whipsaw a single-day oscillator can generate — the trade-off being fewer, later signals.

What role does the moving average play here?

It acts as a trend filter. The strategy uses the long-term moving average to establish the market's direction and only looks for entries aligned with it, so the oscillator is timing pullbacks within an existing trend rather than calling reversals blindly.

Does the "83% win rate" mean the strategy is profitable?

Not on its own. Win rate only measures how often trades close positive; it ignores the average size of wins versus losses and the drawdown along the way. Strategy Decoder extracts the structure of strategies like this from their source videos so you can backtest them on TradingView and judge them on full performance rather than a single headline figure.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

Other versions of this strategy

More decoded strategies