This strategy employs a multi-indicator mean reversion approach targeting Nasdaq 100 stocks. It uses index-level RSI (14) and MACD as entry filters—initiating long positions when the index is oversold (RSI ≤ 40) and MACD signal line turns bullish (≥ 0). Individual stock selection is ranked by RSI (14), favoring stronger momentum. Position exits occur on two schedules: weak RSI performers exit every 2 days, and high Bollinger Bands width (volatility spike) exits every 2 weeks. Daily stop-loss (5%) and take-profit (10%) provide risk management. The strategy rebalances weekly with a 10-position portfolio, designed to capture oversold bounces while managing drawdown through multi-timeframe exits
The strategy applies technical analysis at the NASDAQ index level to filter entries and selects positions based on their individual RSI. An entry signal is generated when the index is oversold (RSI < 40), confirmed by a rising MACD line. Positions are ranked by their 14-period RSI (higher to lower), with exits controlled by a 21-period RSI and stop-loss (5%) / take-profit (10%) levels on a daily timeframe.