No Country for Bad Trades: The RSI Setup
In this episode, Kyle sits down with Cam to break down another piece of his trading system: the RSI strategy.
Unlike Gap and Go, which is built around momentum and breakouts, this setup is a mean-reversion strategy. The idea is simple: find strong stocks that are temporarily oversold, then look for the bounce.
Cam walks through how he uses a two-period RSI, why he looks for signals below 10, and how he exits once RSI recovers. He also explains why this works better on large-cap, institutionally supported names (especially Nasdaq 100 stocks), and why it falls apart when applied to smaller, lower-quality names.
The conversation also covers how RSI fits into a broader portfolio of strategies alongside Gap and Go, Close/Open, and Opening Range Break. Cam explains why diversifying by strategy can create a smoother equity curve, keep capital working in different market conditions, and reduce reliance on any single setup.
They also get into the practical side: how to size the trade, why earnings create the biggest tail risk, whether stop losses help or hurt, how options can be used to define risk, what delta and expiration ranges make sense, and why selling puts may be another way to express the same idea.
This episode is a deeper look at building a full trading system… Not just finding one setup, but stacking strategies that complement each other.
⚠️ Best experienced on Spotify or YouTube - Cam is sharing charts throughout the episode.
👉 Join Cam’s trading community:
https://whop.com/the-construct-trading/premium-trading-comminty?a=chinashopproductions
Chapters
00:00 — Why Diversifying Strategies Matters
00:49 — RSI Strategy Overview and Where the Signal Comes From
03:22 — Close/Open, Overnight Returns, and Unused Capital
05:17 — Applying RSI to Individual Stocks
06:30 — Entry and Exit Rules for the RSI Setup
07:35 — Why RSI Works Better on Large-Cap Names
09:27 — Filters: Nasdaq 100, 200-Day Strength, and Moving Averages
10:40 — Strategy Diversification: Gap and Go, Close/Open, and RSI
13:19 — Choosing Between RSI and Gap and Go
15:24 — Managing Risk Without Traditional Stop Losses
18:31 — Coca-Cola Example: RSI Signal, Options, and Rolling Winners
20:10 — Using Options to Define Risk
24:06 — Volatility, IV Crush, and Selling Puts
27:12 — Backtesting, Survivorship Bias, and AI
29:15 — Sizing Correctly, Avoiding Earnings, and Final Rules
Sponsors:
Our podcast is sponsored by Sue Maki at Fairway Independent Mortgage (MLS# 206048). Licensed in 38 states, if you need anything mortgage-related, reach out to her at SMaki@fairwaymc.com or give her a call at (520) 977-7904. Tell her 2 Bulls sent you to get the best rates available!
If you are interested in signing up with TRADEPRO Academy, you can use our affiliate link here. We receive compensation for any purchases made when using this link, so it's a great way to support the show and learn at the same time! **Use code CHINASHOP15 to save 15%**
To contact us, you can email us directly at bandoftraderspodcast@gmail.com
Check out our directory for other amazing interviews we've done in the past!
If you like our show, please let us know by rating and subscribing on your platform of choice!
If you like our show and hate social media, then please tell all your friends!
If you have no friends and hate social media and you just want to give us money for advertising to help you find more friends, then you can donate to support the show here!
Cam:
Cam is a Navy veteran & management consultant turned 8 figure investor & trader. Trading let him retire at 35 & be able to support and provide for his family forever. Now he wants to help others escape the financial system and live the way we were meant to live: free. His system is a rule-based design that can be used for long term investing, swing trading or option selling on any schedule.