Intraday Short Entries from Bearish Moving Average Crossovers

Summary

This intraday options-selling strategy opens short positions when a configurable fast moving average crosses below a slower one. Both averages can use exponential, simple, or weighted calculations. A slope filter can require the two averages to be falling by specified amounts over a selected lookback, and a session filter restricts entries to configured trading hours. The strategy permits only one open position at a time.

A short is closed when the fast average crosses back above the slow average, or optionally when the trading session ends. The script includes chart labels, alerts, and visual trend cues. The author suggests use on Nifty or Bank Nifty at a five-minute interval, but the document provides no backtest results, risk controls such as a stop-loss, or details on how option contracts are selected or sized. The claimed use case therefore remains unvalidated, and outcomes may vary with market, timeframe, costs, and execution.

Key ideas

• A bearish fast-over-slow moving average cross triggers a short entry when filters pass.
• An optional slope filter requires both moving averages to be declining over a configurable lookback.
• Entries can be limited to a trading session, with an optional close at session end.
• The strategy exits on a bullish moving average cross and allows only one open position.
• The document recommends example indices and timeframe but provides no performance evidence or stop-loss rule.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.