Higher risk & returns (Bearish Market Conditions)
Strategy Name: Downshift
Strategy Description:
Downshift is a tactical short-selling strategy designed to exploit downward momentum during established bearish trends. By combining trend confirmation with momentum and volatility filters, it targets short-term downside moves with tight, controlled risk parameters. The strategy is ideal for active traders who want to capitalize on bearish phases without overexposure.
Core Setup:
Trend Filter:
Enters short only when EMA(50) < EMA(200) on the 30-minute bar chart, confirming a prevailing downtrend.
Momentum Confirmation:
Requires RSI < 45 on the 30-minute bar chart to ensure, but not guarantee, continued bearish pressure.
Volatility Gate:
Activates only when ATR > 0.75%, confirming sufficient movement for short-term price drops.
Profit Target & Risk Control:
Take Profit: +0.75%
Stop Loss: -1.0%
A 1.33:1 reward-to-risk ratio provides edge even with a modest win rate.
Ideal For:
Traders who want to short assets with strong downside momentum
Bearish plays on volatile stocks, ETFs, or crypto assets
Systematic strategies where low drawdown and clear entry logic are critical
Downshift provides a disciplined framework for catching sharp pullbacks and breakdowns, helping traders stay on the right side of the market during bearish trends — without getting caught in sideways chop or premature reversals.
Next steps:
Try this strategy on a different asset or timeframe -
Navigate to the “Create” menu on the homepage, choose your preferred asset and timeframe, then choose “Copy” to duplicate the strategy.
From there, backtest and deploy whenever you're ready.
Reach out to the Level2 team with any questions or if you need tech support
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