Public trading strategy
IBM warns on AI while ServiceNow cashes in — long ServiceNow, short IBM
Created
Thesis
The AI revolution is creating a massive divide in the tech sector, and the latest earnings reports show exactly where the money is flowing. ServiceNow is proving that it can integrate AI to drive revenue growth and squash disruption fears, while IBM is actively cutting its outlook, signaling it is losing the battle. By betting on ServiceNow to outperform while simultaneously betting against IBM, you capture the shift in enterprise spending toward platforms that are successfully monetizing AI, regardless of whether the overall tech market goes up or down.
Strategy approach
Build a long/short pairs trade on the daily timeframe. Long leg: NOW. Short leg: IBM. Entry: Enter both legs when the 5-day moving average of NOW/IBM ratio breaks above the 20-day moving average of the ratio. Exit: Close both legs when the ratio's 5-day MA crosses below the 20-day MA, or after a maximum hold of 60 trading days. Use equal dollar weighting for both legs at entry.
Markets and timeframes
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: EMA/ADX Crossover Long (NOW@1d) (5 conditions)
- Entry: EMA/ADX Crossover Short (IBM@1d) (3 conditions)
- Exit: EMA Crosses Below Exit (NOW@1d) (2 conditions)
- Exit: EMA Crosses Below Exit (NOW@1d) (2 conditions)
- Exit: TP: Near Resistance[1] (NOW@1d) (1 condition)
- Exit: TP: Near Resistance[1] (NOW@1d) (1 condition)
- Exit: SL: Below Support[2] (NOW@1d) (1 condition)
- Exit: SL: Below Support[2] (NOW@1d) (1 condition)
- Exit: Stop Loss at 2.6% (1 condition)
- Exit: Take Profit at 5.1% (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
{
"symbol": "STOCK:IBM",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "high",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "EMA/ADX Crossover Long (NOW@1d)",
"priority": 1,
"trade_symbol": "STOCK:NOW"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
}
}
],
"direction": "short",
"enabled": true,
"id": "entry_2",
"name": "EMA/ADX Crossover Short (IBM@1d)",
"priority": 2,
"trade_symbol": "STOCK:IBM"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_now",
"name": "EMA Crosses Below Exit (NOW@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "STOCK:NOW"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_ibm",
"name": "EMA Crosses Below Exit (NOW@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "STOCK:IBM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_2_now",
"name": "TP: Near Resistance[1] (NOW@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "STOCK:NOW"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_2_ibm",
"name": "TP: Near Resistance[1] (NOW@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "STOCK:IBM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_now",
"name": "SL: Below Support[2] (NOW@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "STOCK:NOW"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_ibm",
"name": "SL: Below Support[2] (NOW@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "STOCK:IBM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -2.5651333333333333
}
}
],
"enabled": true,
"id": "exit_4",
"name": "Stop Loss at 2.6%",
"priority": 100,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 5.1302666666666665
}
}
],
"enabled": true,
"id": "exit_5",
"name": "Take Profit at 5.1%",
"priority": 100,
"purpose": "take_profit"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2.5651333333333333,
"support_stop_rank": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "ema",
"period": 5
},
{
"name": "ema",
"period": 20
},
{
"name": "adx",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
{
"symbol": "STOCK:IBM",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "high",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "EMA/ADX Crossover Long (NOW@1d)",
"priority": 1,
"trade_symbol": "STOCK:NOW"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
}
}
],
"direction": "short",
"enabled": true,
"id": "entry_2",
"name": "EMA/ADX Crossover Short (IBM@1d)",
"priority": 2,
"trade_symbol": "STOCK:IBM"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_now",
"name": "EMA Crosses Below Exit (NOW@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "STOCK:NOW"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 5
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_ibm",
"name": "EMA Crosses Below Exit (NOW@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "STOCK:IBM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_2_now",
"name": "TP: Near Resistance[1] (NOW@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "STOCK:NOW"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_2_ibm",
"name": "TP: Near Resistance[1] (NOW@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "STOCK:IBM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_now",
"name": "SL: Below Support[2] (NOW@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "STOCK:NOW"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:NOW",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_ibm",
"name": "SL: Below Support[2] (NOW@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "STOCK:IBM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -2.5651333333333333
}
}
],
"enabled": true,
"id": "exit_4",
"name": "Stop Loss at 2.6%",
"priority": 100,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 5.1302666666666665
}
}
],
"enabled": true,
"id": "exit_5",
"name": "Take Profit at 5.1%",
"priority": 100,
"purpose": "take_profit"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2.5651333333333333,
"support_stop_rank": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'IBM warns on AI while ServiceNow cashes in — long ServiceNow, short IBM'. Thesis: The AI revolution is creating a massive divide in the tech sector, and the latest earnings reports show exactly where the money is flowing. ServiceNow is proving that it can integrate AI to drive revenue growth and squash disruption fears, while IBM is actively cutting its outlook, signaling it is losing the battle. By betting on ServiceNow to outperform while simultaneously betting against IBM, you capture the shift in enterprise spending toward platforms that are successfully monetizing AI, regardless of whether the overall tech market goes up or down.
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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