29 lines
1.2 KiB
Markdown
29 lines
1.2 KiB
Markdown
# 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.
|
|
|
|
--- |