If you had opened a long-term long on the Nasdaq at the last close of 2023 your current position price would now be up about 3,500 points, about 20% since then: not a bad return. But buy-and-hold puts all your eggs in one basket, and you earn literally nothing from the bearish moves. So traders look for short-term positions, including both long and short.
So here’s a simple objective short-term D1 strategy that might be interesting.
- On any day when price closes above the 50EMA set a buy order at the day’s high.
- Do the same tomorrow.
- Set a stop-loss at the day’s low.
- If an order is triggered, exit that position at its next profitable close.
- Cancel untriggered buy orders if price closes below the 50EMA.
- Whle price is closing below the 50EMA, follow the same strategy but in reverse - set a short order at the day’s low, with a stop-loss at the day’s high.