# Short Bot

This strategy was taken from chapter 12 of [*Short Term Trading Strategies That Work*](https://moshferatu.dev/moshferatu/short-term-trading-strategies-that-work) (2008) by Larry Connors.

## Rules

1. The asset (e.g., SPY) is below its 200-day moving average.
2. If the market closes up 4 or more days in a row, enter a short trade.
3. Exit the trade on a close below the 5-period moving average.

## Parameters

**Long-Term Trend Period**: The period of the long-term trend filter as measured using a simple moving average. (Default: 200)

**Short-Term Trend Period**: The period of the short-term trend used to exit trades as measured by a simple moving average. (Default: 5)

**Up Streak Period**: The number of days in a row that the close has to be higher in order to enter a trade. (Default: 4)

## Backtest Results

### SPY

![SPY Analysis](https://static.moshington.com/images/strategies/short/spy-analysis.png)

![SPY Summary](https://static.moshington.com/images/strategies/short/spy-summary.png)

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