Bearish Moving Average Crossover Strategy with Slope and Session Filters
Summary
Despite its option-selling label, the script implements a short-only signal on the charted instrument rather than modeling option positions or option payoff. It enters when a configurable fast moving average crosses below a slow moving average. By default, both averages must also have sufficiently negative slopes over a lookback, and entries must occur during a configured NSE trading session.
A short closes when the fast average crosses above the slow average, or when the session ends if forced end-of-day closing is enabled. The averages may be exponential, simple, or weighted; the default lengths are 9 and 21, and the default session is 09:20–15:20. The author describes the trades as low-noise and suggests five-minute charts and in-the-money Nifty or Bank Nifty strikes, but the script contains no option selection, premium-based rules, risk sizing, or reported backtest evidence. The claims therefore cannot establish trading performance, and users would need to validate execution, costs, and instrument-specific behavior.
Key ideas
- The strategy enters short when a fast moving average crosses below a slow moving average.
- A configurable filter requires both averages to have sufficiently negative slopes.
- Entries can be restricted to an NSE session, with an optional close when that session ends.
- A bullish moving average crossover closes an open short position.
- The script does not model options or provide performance evidence despite its option-selling framing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.