Public trading strategy
Italian bank mega-merger signals a European banking comeback — load up on financ
Created
Thesis
Bank mergers are incredibly bullish because they create larger, more profitable companies that can cut costs and charge higher fees. The European Central Bank raising interest rates is also excellent for banks, as it allows them to earn more money on the loans they make. A massive $58 billion merger will make investors look at other European banks as potential takeover targets, driving their stock prices up. This combination of dealmaking and rising rates creates a perfect storm for European financial stocks.
Strategy approach
Build a long strategy on European financial ETFs (EUFN) and Italian banks (EWG) on the daily timeframe. Enter when the price closes above the 20-day moving average and the 14-day RSI is between 50 and 65 (showing strengthening but not overbought momentum). Exit when RSI crosses above 80 or after 25 trading days. Use a 5% trailing stop.
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: SMA/RSI Signal Long (EUFN@1d) (5 conditions)
- Entry: SMA/RSI Signal Long (EWG@1d) (5 conditions)
- Entry: SMA/RSI Signal Long (EUFN@1d) (3 conditions)
- Entry: SMA/RSI Signal Long (EWG@1d) (3 conditions)
- Entry: Long Entry Signal (EUFN@1d) (2 conditions)
- Entry: Long Entry Signal (EWG@1d) (2 conditions)
- Exit: Overbought RSI Exit (EUFN@1d) (1 condition)
- Exit: Overbought RSI Exit (EWG@1d) (1 condition)
- Exit: TP: Fib Extension 127.2% (EUFN@1d) (1 condition)
- Exit: TP: Fib Extension 127.2% (EWG@1d) (1 condition)
- Exit: SL: Below Support[2] (EUFN@1d) (1 condition)
- Exit: SL: Below Support[2] (EWG@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "EUFN",
"timeframe": "1d"
},
{
"symbol": "EWG",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
},
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_eufn",
"name": "SMA/RSI Signal Long (EUFN@1d)",
"priority": 1,
"trade_symbol": "EUFN"
},
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
},
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_ewg",
"name": "SMA/RSI Signal Long (EWG@1d)",
"priority": 2,
"trade_symbol": "EWG"
},
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2_eufn",
"name": "SMA/RSI Signal Long (EUFN@1d)",
"priority": 2,
"trade_symbol": "EUFN"
},
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2_ewg",
"name": "SMA/RSI Signal Long (EWG@1d)",
"priority": 3,
"trade_symbol": "EWG"
},
{
"conditions": [
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3_eufn",
"name": "Long Entry Signal (EUFN@1d)",
"priority": 2,
"trade_symbol": "EUFN"
},
{
"conditions": [
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3_ewg",
"name": "Long Entry Signal (EWG@1d)",
"priority": 3,
"trade_symbol": "EWG"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 80
}
}
],
"enabled": true,
"id": "exit_1_eufn",
"name": "Overbought RSI Exit (EUFN@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "EUFN"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 80
}
}
],
"enabled": true,
"id": "exit_1_ewg",
"name": "Overbought RSI Exit (EWG@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "EWG"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"ratio": 1272,
"type": "fibonacci_extension"
}
}
],
"enabled": true,
"id": "exit_2_eufn",
"name": "TP: Fib Extension 127.2% (EUFN@1d)",
"priority": 96,
"purpose": "take_profit",
"target_symbol": "EUFN"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"ratio": 1272,
"type": "fibonacci_extension"
}
}
],
"enabled": true,
"id": "exit_2_ewg",
"name": "TP: Fib Extension 127.2% (EWG@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "EWG"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_eufn",
"name": "SL: Below Support[2] (EUFN@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "EUFN"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_ewg",
"name": "SL: Below Support[2] (EWG@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "EWG"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 786,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "sma",
"period": 20
},
{
"name": "rsi",
"period": 14
},
{
"name": "sma",
"period": 20
},
{
"name": "rsi",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "EUFN",
"timeframe": "1d"
},
{
"symbol": "EWG",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
},
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_eufn",
"name": "SMA/RSI Signal Long (EUFN@1d)",
"priority": 1,
"trade_symbol": "EUFN"
},
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
},
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_ewg",
"name": "SMA/RSI Signal Long (EWG@1d)",
"priority": 2,
"trade_symbol": "EWG"
},
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2_eufn",
"name": "SMA/RSI Signal Long (EUFN@1d)",
"priority": 2,
"trade_symbol": "EUFN"
},
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 50
}
},
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 65
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2_ewg",
"name": "SMA/RSI Signal Long (EWG@1d)",
"priority": 3,
"trade_symbol": "EWG"
},
{
"conditions": [
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3_eufn",
"name": "Long Entry Signal (EUFN@1d)",
"priority": 2,
"trade_symbol": "EUFN"
},
{
"conditions": [
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3_ewg",
"name": "Long Entry Signal (EWG@1d)",
"priority": 3,
"trade_symbol": "EWG"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 80
}
}
],
"enabled": true,
"id": "exit_1_eufn",
"name": "Overbought RSI Exit (EUFN@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "EUFN"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 80
}
}
],
"enabled": true,
"id": "exit_1_ewg",
"name": "Overbought RSI Exit (EWG@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "EWG"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"chart_ref": {
"symbol": "EUFN",
"timeframe": "1d"
},
"ratio": 1272,
"type": "fibonacci_extension"
}
}
],
"enabled": true,
"id": "exit_2_eufn",
"name": "TP: Fib Extension 127.2% (EUFN@1d)",
"priority": 96,
"purpose": "take_profit",
"target_symbol": "EUFN"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"chart_ref": {
"symbol": "EWG",
"timeframe": "1d"
},
"ratio": 1272,
"type": "fibonacci_extension"
}
}
],
"enabled": true,
"id": "exit_2_ewg",
"name": "TP: Fib Extension 127.2% (EWG@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "EWG"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_eufn",
"name": "SL: Below Support[2] (EUFN@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "EUFN"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_3_ewg",
"name": "SL: Below Support[2] (EWG@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "EWG"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 786,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Italian bank mega-merger signals a European banking comeback — load up on financials'. Thesis: Bank mergers are incredibly bullish because they create larger, more profitable companies that can cut costs and charge higher fees. The European Central Bank raising interest rates is also excellent for banks, as it allows them to earn more money on the loans they make. A massive $58 billion merger will make investors look at other European banks as potential takeover targets, driving their stock prices up. This combination of dealmaking and rising rates creates a perfect storm for European financial stocks.
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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How CommonQuant researches and tests strategies · Public paper-trading record and its limits · Discover public strategies