33 lines
1.2 KiB
Markdown
33 lines
1.2 KiB
Markdown
# 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
|
|
|
|
|
|
|
|
|
|
|
|
### QQQ
|
|
|
|
|
|
|
|
|
|
|
|
--- |