3 Down, 3 Up Strategy by Botnet101
By Botnet101
Performance Metrics
- Author: Botnet101
- Symbol: NASDAQ:MSFT
- Timeframe: 2 hours
- Net P&L: +28,253,616.93 USD (+2,764.43%)
- Win Rate: 67.4%
- Profit Factor: 1.996
- Max Drawdown: 2,153,501.31 USD (25.91%)
- Total Trades: 684
- Sharpe Ratio: 0.297
Description
█ STRATEGY DESCRIPTION The "3 Down, 3 Up Strategy" is a mean-reversion strategy designed to capitalize on short-term price reversals. It enters a long position after consecutive bearish closes and exits after consecutive bullish closes. This strategy is NOT optimized and can be used on any timeframes.█ WHAT ARE CONSECUTIVE DOWN/UP CLOSES? - Consecutive Down Closes: A sequence of trading bars where each close is lower than the previous close. - Consecutive Up Closes: A sequence of trading bars where each close is higher than the previous close. █ SIGNAL GENERATION 1. LONG ENTRY A Buy Signal is triggered when: The price closes lower than the previous close for Consecutive Down Closes for Entry (default: 3) consecutive bars. The signal occurs within the specified time window (between Start Time and End Time). If enabled, the close price must also be above the 200-period EMA (Exponential Moving Average). 2. EXIT CONDITION A Sell Signal is generated when the price closes higher than the previous close for Consecutive Up Closes for Exit (default: 3) consecutive bars. █ ADDITIONAL SETTINGS Consecutive Down Closes for Entry: Number of consecutive lower closes required to trigger a buy. Default = 3. Consecutive Up Closes for Exit: Number of consecutive higher closes required to exit. Default = 3. EMA Filter: Optional 200-period EMA filter to confirm long entries in bullish trends. Default = disabled. Start Time and End Time: Restrict trading to specific dates (default: 2014-2099). █ PERFORMANCE OVERVIEW Designed for volatile markets with frequent short-term reversals. Performs best when price oscillates between clear support/resistance levels. The EMA filter improves reliability in trending markets but may reduce trade frequency. Backtest to optimize consecutive close thresholds and EMA period for specific instruments.