Trend Filters and Crash Recovery Rules for a Nasdaq Strategy

Summary

This partial strategy script describes a long-only approach using QQQ entries filtered by market conditions in SPY, with Bitcoin trend as an optional assist. Entry conditions include several days of SPY lows above its short-term EMA, QQQ holding above short-term averages, no sequence of declining QQQ closes, and an ADX trend-strength threshold. Inputs also define leverage, a QQQ stop loss, and rules for measuring a substantial SPY drawdown from its prior high.

After a large SPY decline, the script arms a recovery state and tracks a return to the former high before clearing it. If the market has gone a prolonged time without a new high, an extension above the 200-day EMA can filter entries. The heading claims a very low drawdown and Nasdaq-like performance, but the supplied text includes no report or supporting performance figures. It is truncated before the complete order logic, so actual entries, exits, and results cannot be assessed.

Key ideas

• The strategy uses SPY trend and price structure to filter long entries in QQQ.
• Bitcoin bullish conditions can act as an additional entry signal when SPY is above its short moving average.
• A large drawdown from the SPY high arms a recovery state that remains active until the former high is regained.
• The shown code defines a stop loss and trend filters, but omits the complete trading and exit logic.
• The performance claim in the heading is unsupported by results in the supplied excerpt.

Tags

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