they do go short. In uptrending markets there is an exhaustion
short (but it's very difficult to trigger) that name should be self
explanatory what it means - you have to be above the 8 SMA for
something like 25 consecutive days along with over overbought
indicators, it's very hard to trigger. There's also the 60
Stochastic short - which occurs when the 60 Stochastic has been
trending above 80% and falls below 80% and kiss the underside of
80% and crosses down - see attached image for an example.
the other shorts are reversion to mean meaning, in a down
trending environment they short overbought rallies. If we go into a
bear market or a very choppy 2022 we may start seeing those
piclez, SPY systems do go short. But since they are Reversion to
Mean systems they would go short when there is a large, quick move
up in a bigger downtrend.
I went and saw the past posts about it and remember you
mentioned if we go to a choppy or bear market in 2022 we might use
the shorts more
"If we go into a bear market or a very choppy 2022 we may start
seeing those" so just curious to see if this year would make sense
to use both? Or at least get out of the longs quicker when we see a
short signal? I had my half position still on where I could have
gotten out a few days earlier based on the short signals (?) - just
ideas to bounce with the community. Thanks again.
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I know we are on
Posted by piclez on 14th of Dec 2021 at 01:36 pm
I know we are on an uptrend market, but why SPY systems don't go short as well? Thanks.
they do go short. In
Posted by matt on 14th of Dec 2021 at 01:50 pm
they do go short. In uptrending markets there is an exhaustion short (but it's very difficult to trigger) that name should be self explanatory what it means - you have to be above the 8 SMA for something like 25 consecutive days along with over overbought indicators, it's very hard to trigger. There's also the 60 Stochastic short - which occurs when the 60 Stochastic has been trending above 80% and falls below 80% and kiss the underside of 80% and crosses down - see attached image for an example.
the other shorts are reversion to mean meaning, in a down trending environment they short overbought rallies. If we go into a bear market or a very choppy 2022 we may start seeing those
here's examples of exhaustion shorts
Posted by matt on 14th of Dec 2021 at 01:53 pm
here's examples of exhaustion shorts - again those and the 60 Stochastic can't trigger at this time.
https://breakpointtrades.com/blog/post/334033/
here's that link showing some
Posted by matt on 14th of Dec 2021 at 01:58 pm
here's that link showing some past exhaustion shorts - I had the wrong URL below but corrected it
https://breakpointtrades.com/blog/post/334033/
piclez, SPY systems do go
Posted by craigm on 14th of Dec 2021 at 01:44 pm
piclez, SPY systems do go short. But since they are Reversion to Mean systems they would go short when there is a large, quick move up in a bigger downtrend.
I went and saw the
Posted by piclez on 9th of Mar 2022 at 12:10 pm
I went and saw the past posts about it and remember you mentioned if we go to a choppy or bear market in 2022 we might use the shorts more
"If we go into a bear market or a very choppy 2022 we may start seeing those" so just curious to see if this year would make sense to use both? Or at least get out of the longs quicker when we see a short signal? I had my half position still on where I could have gotten out a few days earlier based on the short signals (?) - just ideas to bounce with the community. Thanks again.