We mainly focus on day trade algorithms and have discussed how shorting rallies and holding positions for a longer period of time has been a good way to short this market. This is a swing strategy and not a typical daytrade algorithm so we share this with our members to use at their discretion.
We reveal the code for a strategy that would have made over $100K per Nasdaq contract with drawdowns of $20K since November 2021.
We show how to reduce the drawdowns to $10K. It could also be traded with Micros or options.
Past performance is not indicative of future results and the market could reverse its trend or the market could turn 3 day rallies into 20 day rallies before it rolls over again.
We like the approach best from an options perspective since option prices for puts will decrease as prices rise and as volatility shrinks when the market moves higher. Also going long puts with only 3-5 days until expiration could possibly give us a good risk to reward pay off.
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