Public trading strategy
Tech fear hits a 2-decade high while big banks pass stress tests with flying col
Created
Thesis
The market is currently experiencing a historic level of fear specifically concentrated in the technology sector, with a key tech 'fear gauge' nearing a two-decade high and driving a massive sell-off. In stark contrast, the Federal Reserve's stress test just confirmed that all 32 large banks are incredibly safe, directly leading JPMorgan to announce a massive $50 billion buyback and Goldman Sachs to raise its dividend. When tech fear spikes to these extremes, capital typically rotates into sectors with the strongest balance sheets and clearest return of cash to shareholders. Supported by the broader trend of smaller, non-tech companies booming this year, initiating a long position in top-tier bank stocks offers a high-probability shelter from the tech volatility.
Strategy approach
Build a rule-based strategy that enters long XLF (Financial Select Sector SPDR) on D1 when the VIX (CBOE Volatility Index) makes a 20-day high. Exit conditions: take profit if XLF appreciates by 4%, or cut losses with a 3% stop loss. Hold for a maximum of 21 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: RSI Signal Long (XLF@1d) (1 condition)
- Entry: RSI Signal Long (GS@1d) (1 condition)
- Entry: RSI Signal Long (JPM@1d) (1 condition)
- Exit: ADX Threshold Exit (XLF@1d) (1 condition)
- Exit: ADX Threshold Exit (XLF@1d) (1 condition)
- Exit: ADX Threshold Exit (XLF@1d) (1 condition)
- Exit: Take Profit at 4.0% (1 condition)
- Exit: Stop Loss at 3.0% (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "XLF",
"timeframe": "1d"
},
{
"symbol": "GS",
"timeframe": "1d"
},
{
"symbol": "JPM",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "RSI Signal Long (XLF@1d)",
"priority": 1,
"trade_symbol": "XLF"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2",
"name": "RSI Signal Long (GS@1d)",
"priority": 3,
"trade_symbol": "GS"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3",
"name": "RSI Signal Long (JPM@1d)",
"priority": 3,
"trade_symbol": "JPM"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"enabled": true,
"id": "exit_1_xlf",
"name": "ADX Threshold Exit (XLF@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "XLF"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"enabled": true,
"id": "exit_1_gs",
"name": "ADX Threshold Exit (XLF@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "GS"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"enabled": true,
"id": "exit_1_jpm",
"name": "ADX Threshold Exit (XLF@1d)",
"priority": 3,
"purpose": "signal",
"target_symbol": "JPM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 4
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Take Profit at 4.0%",
"priority": 11,
"purpose": "take_profit",
"target_symbol": "XLF"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -3
}
}
],
"enabled": true,
"id": "exit_3",
"name": "Stop Loss at 3.0%",
"priority": 10,
"purpose": "stop_loss",
"target_symbol": "XLF"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2.6013333333333337,
"stop_loss_percent": 3,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "rsi",
"period": 14
},
{
"name": "adx",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "XLF",
"timeframe": "1d"
},
{
"symbol": "GS",
"timeframe": "1d"
},
{
"symbol": "JPM",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "RSI Signal Long (XLF@1d)",
"priority": 1,
"trade_symbol": "XLF"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_2",
"name": "RSI Signal Long (GS@1d)",
"priority": 3,
"trade_symbol": "GS"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_3",
"name": "RSI Signal Long (JPM@1d)",
"priority": 3,
"trade_symbol": "JPM"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"enabled": true,
"id": "exit_1_xlf",
"name": "ADX Threshold Exit (XLF@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "XLF"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"enabled": true,
"id": "exit_1_gs",
"name": "ADX Threshold Exit (XLF@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "GS"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "XLF",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 20
}
}
],
"enabled": true,
"id": "exit_1_jpm",
"name": "ADX Threshold Exit (XLF@1d)",
"priority": 3,
"purpose": "signal",
"target_symbol": "JPM"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 4
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Take Profit at 4.0%",
"priority": 11,
"purpose": "take_profit",
"target_symbol": "XLF"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -3
}
}
],
"enabled": true,
"id": "exit_3",
"name": "Stop Loss at 3.0%",
"priority": 10,
"purpose": "stop_loss",
"target_symbol": "XLF"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2.6013333333333337,
"stop_loss_percent": 3,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Tech fear hits a 2-decade high while big banks pass stress tests with flying colors — rotate into financials'. Thesis: The market is currently experiencing a historic level of fear specifically concentrated in the technology sector, with a key tech 'fear gauge' nearing a two-decade high and driving a massive sell-off. In stark contrast, the Federal Reserve's stress test just confirmed that all 32 large banks are incredibly safe, directly leading JPMorgan to announce a massive $50 billion buyback and Goldman Sachs to raise its dividend. When tech fear spikes to these extremes, capital typically rotates into sectors with the strongest balance sheets and clearest return of cash to shareholders. Supported by the broader trend of smaller, non-tech companies booming this year, initiating a long position in top-tier bank stocks offers a high-probability shelter from the tech volatility.
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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