41 lines
1.4 KiB
Markdown
41 lines
1.4 KiB
Markdown
# Large Moves
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The idea for these strategies comes from chapter 7 of [*How Markets Really Work*](https://moshferatu.dev/moshferatu/how-markets-really-work) (2012) by Larry Connors.
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As with most of the strategies from this book, they are meant to illustrate certain characteristics of the market rather than be traded directly.
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## Rules
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### Large Moves Up
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1. When the asset (e.g., SPY) **rises** by 1% or more, enter a long trade.
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2. Exit the trade after 5 trading days (~1 week).
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### Large Moves Down
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1. When the asset (e.g., SPY) **falls** by 1% or more, enter a long trade.
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2. Exit the trade after 5 trading days (~1 week).
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## Parameters
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**Percent Gain / Decline Threshold**: The percent gain or decline necessary in order to trigger a trade. (Default: 1.0)
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**Days to Exit**: The number of days to wait before exiting a trade. (Default: 5)
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## Backtest Results
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### SPY
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#### Large Moves Up
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#### Large Moves Down
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