Public trading strategy
Biotech hit with federal lawsuit over fake revenue — short the crash
Created
Thesis
Lawsuits alleging fake revenue numbers almost always trigger a panic sell-off as investors run for the exits to avoid the unknown. Even if the company eventually defends itself, the stock price usually gets dragged down by the bad headlines and uncertainty in the short term. This makes it a prime candidate to bet against as the selling pressure builds.
Strategy approach
Build a bearish momentum strategy on ADMA using the 1-hour timeframe. Enter short when price breaks below the VWAP and the 20-period EMA crosses below the 50-period EMA. Exit the trade for a profit if price reverses to touch the 50-period EMA, or cut losses with a 3% stop if the stock suddenly rallies.
Markets and timeframes
ADMA1H
Entry and exit at a glance
These are the named rules in the shared configuration. Review the full conditions below before using a strategy.
- Entry: VWAP/EMA/ADX Crossover Short (ADMA@1h) (3 conditions)
- Exit: TP: Position Exit Rule (ADMA@1h) (1 condition)
- Exit: Stop Loss at 3.0% (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "ADMA",
"timeframe": "1h"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "vwap"
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "ema",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"direction": "short",
"enabled": true,
"id": "entry_1",
"name": "VWAP/EMA/ADX Crossover Short (ADMA@1h)",
"priority": 1
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "ema",
"period": 50
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "TP: Position Exit Rule (ADMA@1h)",
"priority": 1,
"purpose": "take_profit",
"target_symbol": "ADMA"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": -3
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Stop Loss at 3.0%",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "ADMA"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"resistance_stop_rank": 1,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1h",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "vwap"
},
{
"name": "ema",
"period": 20
},
{
"name": "ema",
"period": 50
},
{
"name": "adx",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "ADMA",
"timeframe": "1h"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "vwap"
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "ema",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"direction": "short",
"enabled": true,
"id": "entry_1",
"name": "VWAP/EMA/ADX Crossover Short (ADMA@1h)",
"priority": 1
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"chart_ref": {
"symbol": "ADMA",
"timeframe": "1h"
},
"indicator": {
"name": "ema",
"period": 50
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "TP: Position Exit Rule (ADMA@1h)",
"priority": 1,
"purpose": "take_profit",
"target_symbol": "ADMA"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": -3
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Stop Loss at 3.0%",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "ADMA"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"resistance_stop_rank": 1,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1h",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Biotech hit with federal lawsuit over fake revenue — short the crash'. Thesis: Lawsuits alleging fake revenue numbers almost always trigger a panic sell-off as investors run for the exits to avoid the unknown. Even if the company eventually defends itself, the stock price usually gets dragged down by the bad headlines and uncertainty in the short term. This makes it a prime candidate to bet against as the selling pressure builds.
Performance
No trade count, win rate, or realized P&L figures are provided in this public preview. The thesis and shared rules do not establish a performance record.
What this public preview can establish
- The thesis and strategy approach describe a market view. They do not show whether an entry or exit condition is currently met.
- Technical strategy fields are shared above. Inspect the actual conditions and check when they were evaluated before relying on them.
- No trade count, win rate, or P&L figure is published in this preview. It cannot establish a performance record.
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