Strategy Logic

This short strategy focuses on downside moves during bear markets, while ensuring the asset trades within a long-term downtrend, exiting after further downside.

The logic is:

1. Compute MACD short, long and histogram lines

2. Bearish MACD crossover signals potential downtrend

3. Price below 450-day MA confirms long-term downtrend

4. Enter short when both conditions met

5. Take profit set at 8% below entry price

6. Stop loss set at 4% above entry price

It utilizes MACD for short-term turns and long MA to avoid blind shorting. Profit/loss controls risk.

Advantages

• MACD signals short-term downside potential

• Long MA filter avoids shorting reversals

• 2:1 profit/loss ratio controls risk

Risks

• Requires MACD parameter tuning

• Long MA prone to lagging signals

• SHORT only misses long opportunities

Summary

This strategy captures short-term down moves when ensured of a bear trend. Profit/loss tuning and position sizing are key for performance.