Public trading strategy
Wall Street is panicking over runaway AI spending — short mega-cap tech into ear
Created
Thesis
Bloomberg warns that inflation volatility is the most fundamental macro risk facing the market right now, a toxic backdrop for companies committing to massive multi-year capital projects. We are already seeing investors reject that spending: Alphabet dropped 6% on soaring AI costs despite a huge cloud revenue beat, and Amazon fell 4% as AI-spending jitters and a Senate China probe weigh on sentiment ahead of its report. With options traders bracing for massive, volatile swings in the biggest tech names as sell signals flash across the S&P 500, the market is telling us it has no appetite for companies pledging to spend 'as fast as they can.' Shorting the biggest AI spenders into this risk-off environment captures the downside as Wall Street re-rates the cost of these mega-projects.
Strategy approach
Build a rule-based strategy that enters short AMZN, GOOGL, and META on D1 when VIX rises above 18 and the stock's 10-day moving average crosses below its 50-day moving average. Exit when VIX drops back below 15 or after a 21-day max hold, with a 4% stop loss.
Markets and timeframes
Latest published rule evaluation
Evaluated . This is a dated rule snapshot, not a live price or trade execution confirmation.
AMZN · 1d
0 of 4 published entry conditions marked met.
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
GOOGL · 1d
0 of 4 published entry conditions marked met.
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
META · 1d
0 of 4 published entry conditions marked met.
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
MSFT · 1d
0 of 4 published entry conditions marked met.
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
- SMA (10) crossed below SMA (50) — near
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: SMA Crossover Long (AMZN@1d) (1 condition)
- Entry: SMA Crossover Long (GOOGL@1d) (1 condition)
- Entry: SMA Crossover Long (META@1d) (1 condition)
- Entry: SMA Crossover Long (MSFT@1d) (1 condition)
- Exit: Position Exit Rule (1 condition)
- Exit: Stop Loss at 4.0% (1 condition)
- Exit: Take Profit at 8.0% (1 condition)
- Exit: SL: Below Support[1] (AMZN@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
{
"symbol": "STOCK:GOOGL",
"timeframe": "1d"
},
{
"symbol": "STOCK:META",
"timeframe": "1d"
},
{
"symbol": "STOCK:MSFT",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "SMA Crossover Long (AMZN@1d)",
"priority": 1,
"trade_symbol": "STOCK:AMZN"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:GOOGL",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2",
"name": "SMA Crossover Long (GOOGL@1d)",
"priority": 2,
"trade_symbol": "STOCK:GOOGL"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:META",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3",
"name": "SMA Crossover Long (META@1d)",
"priority": 3,
"trade_symbol": "STOCK:META"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:MSFT",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_4",
"name": "SMA Crossover Long (MSFT@1d)",
"priority": 4,
"trade_symbol": "STOCK:MSFT"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 21
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -4
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Stop Loss at 4.0%",
"priority": 10,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 8
}
}
],
"enabled": true,
"id": "exit_3",
"name": "Take Profit at 8.0%",
"priority": 11,
"purpose": "take_profit"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_4",
"name": "SL: Below Support[1] (AMZN@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "STOCK:AMZN"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"resistance_stop_rank": 2,
"risk_percent": 2.574733333333333,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
},
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
},
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
},
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
{
"symbol": "STOCK:GOOGL",
"timeframe": "1d"
},
{
"symbol": "STOCK:META",
"timeframe": "1d"
},
{
"symbol": "STOCK:MSFT",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "SMA Crossover Long (AMZN@1d)",
"priority": 1,
"trade_symbol": "STOCK:AMZN"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:GOOGL",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2",
"name": "SMA Crossover Long (GOOGL@1d)",
"priority": 2,
"trade_symbol": "STOCK:GOOGL"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:META",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3",
"name": "SMA Crossover Long (META@1d)",
"priority": 3,
"trade_symbol": "STOCK:META"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:MSFT",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_4",
"name": "SMA Crossover Long (MSFT@1d)",
"priority": 4,
"trade_symbol": "STOCK:MSFT"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 21
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -4
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Stop Loss at 4.0%",
"priority": 10,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 8
}
}
],
"enabled": true,
"id": "exit_3",
"name": "Take Profit at 8.0%",
"priority": 11,
"purpose": "take_profit"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:AMZN",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_4",
"name": "SL: Below Support[1] (AMZN@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "STOCK:AMZN"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"resistance_stop_rank": 2,
"risk_percent": 2.574733333333333,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Wall Street is panicking over runaway AI spending — short mega-cap tech into earnings'. Thesis: Bloomberg warns that inflation volatility is the most fundamental macro risk facing the market right now, a toxic backdrop for companies committing to massive multi-year capital projects. We are already seeing investors reject that spending: Alphabet dropped 6% on soaring AI costs despite a huge cloud revenue beat, and Amazon fell 4% as AI-spending jitters and a Senate China probe weigh on sentiment ahead of its report. With options traders bracing for massive, volatile swings in the biggest tech names as sell signals flash across the S&P 500, the market is telling us it has no appetite for companies pledging to spend 'as fast as they can.' Shorting the biggest AI spenders into this risk-off environment captures the downside as Wall Street re-rates the cost of these mega-projects.
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 dated rule snapshot above shows the conditions evaluated at that time. It does not prove a current trigger or executed trade.
- 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.
Explore
How CommonQuant researches and tests strategies · Public paper-trading record and its limits · Discover public strategies