41 lines
1.5 KiB
Markdown
41 lines
1.5 KiB
Markdown
# Up and Down Days in a Row
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The idea for these strategies comes from chapter 4 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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**Up Days in a Row**
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1. Enter a long trade when the market (e.g., SPX or SPY) closes higher for 3 consecutive days.
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2. Exit the trade after one week.
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**Down Days in a Row**
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1. Enter a long trade when the market (e.g., SPX or SPY) closes lower for 3 consecutive days.
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2. Exit the trade after one week.
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## Parameters
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**Days in a Row**: The number of consecutive days where the close must be higher / lower in order to enter a long trade. (Default: 3)
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**Days to Exit**: The number of days to hold any trades before exiting. (Default: 5)
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## Backtest Results
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### SPY
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#### 3 Up Days in a Row
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#### 3 Down Days in a Row
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