Shorting the SMA 100 Resistance Bounce in Semiconductor Stocks since 2018

BE Trader

Junior member
A lot of trades are watching Daily SMA 100 and treat that as a resistance level. I should say I do exactly the same...
I always wanted to measure that quantitatively so that I can trade based on the signal more confidently. Below is an example of the bounce I'm talking about:

Screen Shot 2022-01-22 at 8.49.21 AM.png

To quantify SMA 100 I backtested the idea of bouncing off Daily SMA 100 and going down.
Each day I'm looking for stocks which
  • Belong to iShares Semiconductor ETF $SOXX
  • Have been trading near SMA 100 on daily (97-103% range)
Enter (criteria to open a ⬇️SHORT position): 3min chart
  • Stock price bounces off SMA 100 on Daily
  • Price is going down for 3 bars after at least
Exit (criteria to close a position): 3min chart
  • Price crosses above EMA 50 and stays there for 5 bars or Price crosses above SMA 100 on Daily
  • Stop loss 1%
Initial capital $10,000
  • Gain is reinvested the next day
  • Loss reducing the buying power the next day
  • If there are multiple candidates buy the one with highest relative volume vs 10min average
2022 (as of Jan 22)2021202020192018
+9.8.%+34.23%+0.96% +13.61% +21.18%
Screen Shot 2022-01-22 at 8.53.00 AM.png

Disclaimer: all calculations made using BreakingEquity
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock    No Thanks