Strategies / S42
Three Down Closes
Buy after three lower closes in a row, hold five bars.
Results
| Market class | Return | Holding | Sharpe | Max DD | Win rate | Trades |
|---|---|---|---|---|---|---|
| Crypto, 1d | +77.9% | +602% | 0.44 | -57.2% | 52.8% | 2,689 |
| Stocks, 1d | +748% | +28K% | 0.78 | -22.4% | 55.6% | 3,187 |
| Forex, 1d | -2.3% | +3.1% | -0.01 | -18.6% | 49.6% | 1,987 |
| Commodities, 1d | +96.0% | +1,833% | 0.31 | -40.1% | 52.0% | 1,690 |
| Indices, 1d | +109% | +878% | 0.37 | -30.2% | 53.9% | 1,651 |
The exact rule
- Go long when close is below close 1 bar ago and close 1 bar ago is below close 2 bars ago and close 2 bars ago is below close 3 bars ago.
- Leave after 5 bars at most.
- Declared timeframe: 1d.
Explain it with Ask AI (Premium, on a desktop)
Watch it trade
This runs the same engine in your browser on the latest candles, with your own costs. Press Replay to watch every entry and exit arrive bar by bar.
Download
Pine ScriptFor TradingView
Paper botRuns on the Bot API, no real money
Python backtestOne file, no dependencies
READMEThe rule in plain words
Want it to run by itself? Read the automate guide, and use paper money first.
Related strategies
Close Near The LowBuy a close in the bottom fifth of the bar, in an uptrend.Volume Climax ReversalBuy a heavy down bar on three times the volume, hold five bars.Range High FadeShort a 60-bar high with RSI stretched: 3 ATR stop, 2R target, 48 bars at most.
Research, not advice. Past results do not predict future ones. Results run to 2026-10-31.