ninjatrader/strategies/3-day-high-low/README.md

# 3-Day High / Low Bot

This strategy was taken from chapter 9 of [*High Probability ETF Trading*](https://moshferatu.dev/moshferatu/high-probability-etf-trading) (2009) by Larry Connors.

## Rules

**Long Trades**

1. The ETF (e.g., SPY) is above its 200-day moving average.
2. The ETF closes below its 5-day moving average.
3. The ETF must make a lower high and lower low for 3 consecutive days.
4. Enter a long if the above conditions are met.
5. **Aggressive Version** (optional): Enter a second long if price closes lower than the initial entry at any point during the trade.
6. Exit when the ETF closes above its 5-day moving average.

**Short Trades**

The inverse of the long trade rules, but stated explicitly:

1. The ETF (e.g., SPY) is below its 200-day moving average.
2. The ETF closes above its 5-day moving average.
3. The ETF must make a higher high and higher low for 3 consecutive days.
4. Enter a short if the above conditions are met.
5. **Aggressive Version** (optional): Enter a second short if price closes higher than the initial entry at any point during the trade.
6. Exit when the ETF closes below its 5-day moving average.

**NOTE**: The strategy will work on any asset, not just ETFs.

---