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:

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.