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Open Code for Capstone Subscribers – Algorithmic Code to Short the Nasdaq Futures


If you are a Capstone Trading Systems subscriber (trading system or portfolio), Contact Us to request the open code for this fully automated trading system.

This strategy will work in Tradestation 9.1, Tradestation 9.5, Tradestation 10, and Multicharts.

Underneath the market, we see that there have been more day trade short selling opportunities in the Nasdaq 100 futures. At approximately one year after Pandemic Fed Stimulus started on 3/23/2020, this strategy, which shorts the Nasdaq futures, started working on 3/17/2021. This is a pattern I discovered in late night research on 10/25/2021. I did not notice this on 3/17/2021.

Hypothetically this has been working for 7 months but not prior to the last 7 months. This strategy uses a very simple line of code for the entry.

This strategy will not be in the Portfolio Calculator and I don’t plan on trading it since it only has 7 months of history.

The most important reason I want to share this with you is the fact that since there has been a very profitable way to short this market during the the last 7 months, we could continue to see more profitable short selling opportunities.

The trend “underneath” the market, the one that you can’t see on the daily charts can give us an idea of the trends that are developing.

The concept of using a system to determine the trend is one I have been considering for several years.

For example, using a high frequency trading system with an average trade profit that is too low to actually trade but shows a profitable equity curve for long only trades could indicate an uptrend that you could use to bias your other strategies with higher average trade profits.

The same holds true for shorting the market. Using a high frequency short only strategy that has an upward equity curve could help you bias some of your other trading systems for a short only bias.

The bias would never have to be all long or all short but more gradual such as 60/40 or 70/30.

Having a methodology to short the market as it makes new all time highs could be a powerful trading tool for daytraders.

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U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

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CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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