Bear Market Strategies

Strategy Name: Momentum Short Sniper

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Strategy Description:

Momentum Short Sniper is a momentum-based short-selling strategy built to capitalize on quick price declines in fast-moving markets. It identifies shifts in momentum using the MACD crossover and only enters trades during periods of active price movement. Designed for intraday execution with precise risk control, Momentum Short Sniper targets small, frequent profits while maintaining tight exposure to downside risk.

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Core Setup:

• Momentum Shift: Trades short when the MACD Line crosses below the Signal Line on the 3-minute bar chart—signaling the start of bearish momentum.

• Volatility Filter: Enters trades only when ATR exceeds 1% of the current stock price, ensuring that conditions are dynamic enough to support a rapid downside move.

• Profit Target & Risk Control:

• Take Profit: +0.5%

• Stop Loss: -0.5%

• A 1:1 reward-to-risk ratio keeps the strategy fast-moving and nimble, suited for high-frequency opportunities.

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Ideal For:

• Traders who favor quick-turnaround short setups during intraday volatility

• Assets with high liquidity and pronounced momentum (e.g., QQQ, TSLA, BTC)

• Strategies where automated, tight-entry conditions and minimal risk exposure are key

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Signal Fade delivers a streamlined approach to short-term bearish trading, combining reliable momentum signals with disciplined execution — perfect for traders seeking consistency, control, and speed in downtrending markets.

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Next steps:

1. Make this strategy your own – click here to customize to suit your preferences.
2. Try this strategy on a different asset or timeframe -

   1. Navigate to the “Create” menu on the homepage, choose your preferred asset and timeframe, then choose “Copy” to duplicate the strategy.

   2. From there, backtest and deploy whenever you're ready.

   3. Reach out to the Level2 team with any questions or if you need tech support

Risk Warning – Template Strategies

The template strategies provided on Level2 are for educational and illustrative purposes only and do not constitute investment advice or a recommendation to trade. These strategies are based on historical examples and are not tailored to your individual financial circumstances, objectives, or risk tolerance.

Before deploying any strategy, you must run a back-test using your chosen security. Strategy performance can vary significantly depending on the asset class, time frame, volatility, and broader market conditions. It is essential to adjust parameters such as entry/exit levels, indicators, and time frames to suit the specific security and current market dynamics.

Level2 does not guarantee the accuracy, completeness, or future performance of any strategy. All trading involves risk, including the potential loss of capital. Past performance is not indicative of future results. Users should conduct their own due diligence and seek independent financial advice if needed.

By using template strategies on Level2, you acknowledge that you are solely responsible for all trading decisions and outcomes.