Public trading strategy
AI trade losing steam as tech selloff spreads — short semiconductor funds to cat
Created
Thesis
A strong U.S. jobs report has traders convinced that the Federal Reserve will keep interest rates high, which usually hurts high-flying tech and AI stocks. We are already seeing massive sell-offs in Asian chipmakers and U.S. futures. Shorting a semiconductor ETF like SMH allows you to profit if this sudden shift out of AI stocks continues, without having to guess exactly which individual chip company will fall the most.
Strategy approach
Build a rule-based strategy that enters short SMH on the daily timeframe when the price closes below the lower Bollinger Band (20-period, 2 standard deviations) and the RSI(14) is below 35. Use a 2% trailing stop to manage risk, and set a maximum holding period of 10 trading days.
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: Oversold BB/RSI Short (SMH@4h) (2 conditions)
- Exit: Stop Loss at 2.0% (1 condition)
- Exit: Take Profit at 10.0% (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "SMH",
"timeframe": "4h"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SMH",
"timeframe": "4h"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "SMH",
"timeframe": "4h"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 35
}
}
],
"direction": "short",
"enabled": true,
"id": "entry_short_smh",
"name": "Oversold BB/RSI Short (SMH@4h)",
"priority": 1,
"trade_symbol": "SMH"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": -2
}
}
],
"enabled": true,
"id": "exit_trailing_stop",
"name": "Stop Loss at 2.0%",
"priority": 1,
"purpose": "stop_loss",
"target_symbol": "SMH"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 10
}
}
],
"enabled": true,
"id": "exit_take_profit",
"name": "Take Profit at 10.0%",
"priority": 2,
"purpose": "take_profit",
"target_symbol": "SMH"
}
],
"position_sizing": {
"max_position_percent": 12.5,
"method": {
"risk_percent": 2,
"stop_loss_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "4h",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
{
"name": "rsi",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "SMH",
"timeframe": "4h"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SMH",
"timeframe": "4h"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "SMH",
"timeframe": "4h"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 35
}
}
],
"direction": "short",
"enabled": true,
"id": "entry_short_smh",
"name": "Oversold BB/RSI Short (SMH@4h)",
"priority": 1,
"trade_symbol": "SMH"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": -2
}
}
],
"enabled": true,
"id": "exit_trailing_stop",
"name": "Stop Loss at 2.0%",
"priority": 1,
"purpose": "stop_loss",
"target_symbol": "SMH"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 10
}
}
],
"enabled": true,
"id": "exit_take_profit",
"name": "Take Profit at 10.0%",
"priority": 2,
"purpose": "take_profit",
"target_symbol": "SMH"
}
],
"position_sizing": {
"max_position_percent": 12.5,
"method": {
"risk_percent": 2,
"stop_loss_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "4h",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'AI trade losing steam as tech selloff spreads — short semiconductor funds to catch the downside'. Thesis: A strong U.S. jobs report has traders convinced that the Federal Reserve will keep interest rates high, which usually hurts high-flying tech and AI stocks. We are already seeing massive sell-offs in Asian chipmakers and U.S. futures. Shorting a semiconductor ETF like SMH allows you to profit if this sudden shift out of AI stocks continues, without having to guess exactly which individual chip company will fall the most.
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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