Public trading strategy
China tech stocks nearing bear market — bet against the downturn
Created
Thesis
Chinese stocks are getting hit from all sides right now. Global investors are already pulling away from risky assets due to the escalating war in Iran and the threat of higher interest rates around the world. Technology stocks, which make up a huge portion of the Chinese market, are leading the charge downward. When a market drops this fast and approaches a 20% decline, it often triggers a wave of automated selling and panic as investors rush to the exits. This creates a classic downward momentum that can push prices even lower in the short term.
Strategy approach
Build a rule-based trend-following strategy for FXI (iShares China Large-Cap ETF) on a daily timeframe. Enter a short position when the 10-day moving average crosses below the 50-day moving average, and the RSI(14) is below 40. Exit the short position if the RSI drops below 20 (extreme oversold conditions), or if the price closes above the 10-day moving average for three consecutive 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: SMA/RSI Crossover Long (FXI@1d) (3 conditions)
- Entry: SMA/RSI Crossover Long (KWEB@1d) (3 conditions)
- Entry: SMA/RSI Crossover Long (MCHI@1d) (3 conditions)
- Exit: Oversold RSI Exit (FXI@1d) (2 conditions)
- Exit: Oversold RSI Exit (KWEB@1d) (2 conditions)
- Exit: Oversold RSI Exit (MCHI@1d) (2 conditions)
- Exit: SL: Below Support[1] (FXI@1d) (1 condition)
- Exit: SL: Below Support[1] (KWEB@1d) (1 condition)
- Exit: SL: Below Support[1] (MCHI@1d) (1 condition)
- Exit: TP: Near Resistance[1] (FXI@1d) (1 condition)
- Exit: TP: Near Resistance[1] (KWEB@1d) (1 condition)
- Exit: TP: Near Resistance[1] (MCHI@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "FXI",
"timeframe": "1d"
},
{
"symbol": "KWEB",
"timeframe": "1d"
},
{
"symbol": "MCHI",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_fxi",
"name": "SMA/RSI Crossover Long (FXI@1d)",
"priority": 1,
"trade_symbol": "FXI"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_kweb",
"name": "SMA/RSI Crossover Long (KWEB@1d)",
"priority": 2,
"trade_symbol": "KWEB"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_mchi",
"name": "SMA/RSI Crossover Long (MCHI@1d)",
"priority": 3,
"trade_symbol": "MCHI"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1_fxi",
"name": "Oversold RSI Exit (FXI@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "FXI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1_kweb",
"name": "Oversold RSI Exit (KWEB@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "KWEB"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1_mchi",
"name": "Oversold RSI Exit (MCHI@1d)",
"priority": 3,
"purpose": "signal",
"target_symbol": "MCHI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_fxi",
"name": "SL: Below Support[1] (FXI@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "FXI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_kweb",
"name": "SL: Below Support[1] (KWEB@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "KWEB"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_mchi",
"name": "SL: Below Support[1] (MCHI@1d)",
"priority": 99,
"purpose": "take_profit",
"target_symbol": "MCHI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_fxi",
"name": "TP: Near Resistance[1] (FXI@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "FXI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_kweb",
"name": "TP: Near Resistance[1] (KWEB@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "KWEB"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_mchi",
"name": "TP: Near Resistance[1] (MCHI@1d)",
"priority": 102,
"purpose": "stop_loss",
"target_symbol": "MCHI"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 382,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
},
{
"name": "rsi",
"period": 14
},
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
},
{
"name": "rsi",
"period": 14
},
{
"name": "sma",
"period": 10
},
{
"name": "sma",
"period": 50
},
{
"name": "rsi",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "FXI",
"timeframe": "1d"
},
{
"symbol": "KWEB",
"timeframe": "1d"
},
{
"symbol": "MCHI",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_fxi",
"name": "SMA/RSI Crossover Long (FXI@1d)",
"priority": 1,
"trade_symbol": "FXI"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_kweb",
"name": "SMA/RSI Crossover Long (KWEB@1d)",
"priority": 2,
"trade_symbol": "KWEB"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
},
"operator": "crossed_below",
"right": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 50
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_below",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_mchi",
"name": "SMA/RSI Crossover Long (MCHI@1d)",
"priority": 3,
"trade_symbol": "MCHI"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "FXI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1_fxi",
"name": "Oversold RSI Exit (FXI@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "FXI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "KWEB",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1_kweb",
"name": "Oversold RSI Exit (KWEB@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "KWEB"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "MCHI",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1_mchi",
"name": "Oversold RSI Exit (MCHI@1d)",
"priority": 3,
"purpose": "signal",
"target_symbol": "MCHI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_fxi",
"name": "SL: Below Support[1] (FXI@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "FXI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_kweb",
"name": "SL: Below Support[1] (KWEB@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "KWEB"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_mchi",
"name": "SL: Below Support[1] (MCHI@1d)",
"priority": 99,
"purpose": "take_profit",
"target_symbol": "MCHI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_fxi",
"name": "TP: Near Resistance[1] (FXI@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "FXI"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_kweb",
"name": "TP: Near Resistance[1] (KWEB@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "KWEB"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_mchi",
"name": "TP: Near Resistance[1] (MCHI@1d)",
"priority": 102,
"purpose": "stop_loss",
"target_symbol": "MCHI"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 382,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'China tech stocks nearing bear market — bet against the downturn'. Thesis: Chinese stocks are getting hit from all sides right now. Global investors are already pulling away from risky assets due to the escalating war in Iran and the threat of higher interest rates around the world. Technology stocks, which make up a huge portion of the Chinese market, are leading the charge downward. When a market drops this fast and approaches a 20% decline, it often triggers a wave of automated selling and panic as investors rush to the exits. This creates a classic downward momentum that can push prices even lower in the short term.
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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