From 23df1921175a739f265e0196940bac4266322a5b Mon Sep 17 00:00:00 2001 From: moshferatu Date: Fri, 22 Nov 2024 11:53:29 -0800 Subject: [PATCH] Add rules to Put / Call Ratio Highs and Lows strategy documentation --- strategies/put-call-ratio-highs-and-lows/README.md | 14 ++++++++++++++ 1 file changed, 14 insertions(+) diff --git a/strategies/put-call-ratio-highs-and-lows/README.md b/strategies/put-call-ratio-highs-and-lows/README.md index 95a40f0..c695b64 100644 --- a/strategies/put-call-ratio-highs-and-lows/README.md +++ b/strategies/put-call-ratio-highs-and-lows/README.md @@ -6,4 +6,18 @@ As with most of the strategies from this book, they are meant to illustrate cert The strategies are based on the [Put / Call Ratio indicator](https://moshferatu.dev/moshferatu/ninjatrader/src/branch/main/indicators/put-call-ratio) which calculates the total put options volume divided by the total call options volume. +## Rules + +### Put / Call Ratio Highs + +1. The asset (e.g., SPY) is above its 200-day moving average. +2. If the Put / Call ratio closes at a 5-day high, enter a long trade. +3. Exit the trade after 5 trading days (~1 week). + +### Put / Call Ratio Lows + +1. The asset (e.g., SPY) is above its 200-day moving average. +2. If the Put / Call ratio closes at a 5-day low, enter a long trade. +3. Exit the trade after 5 trading days (~1 week). + --- \ No newline at end of file