Short-Term-Reversal-Strategy

What the project studies

The repository researches a short term reversal call buying setup built around large intraday drawdowns and historical recovery probability. The official universe is named qqq_plus_leverage_etfs and is defined as qqq_only_filtered plus the leveraged ETFs SOXL, UPRO and DRAM. The research asks which names actually rebound quickly after sharp down days and whether that pattern is strong enough to support short term reversal option trades rather than being a coincidence. The README notes the current official version is Reversal 3.5, while the Reversal3.3.ipynb notebook remains the research core for reversal analysis and option profitability confidence estimation.

Filters and trade framing

The strategy applies a set of documented filters rather than trading every dip. These include a sixty day lookback, a requirement that matched_signals be at least ten, a minimum current drop greater than zero point five percent, and a guard that excludes non ETF names with trailing price to earnings above one hundred forty. A live trend health gate blocks entries during short term down channels, and a five day technical timing overlay applies a no trade gate at a score of zero point five. Trade framing uses near at the money calls with roughly thirty days to expiry in backtests, with an exit ladder of plus ten, plus fifteen and minus ten percent in research and a slightly adjusted ladder in live execution.

Research discipline and live paper test

The project emphasizes research guardrails, captured in a RESEARCH_GUARDRAILS.md file, and runs a live paper test with no lookahead scheduled scans, an option liquidity gate, and a no trade rule when liquidity is poor. The published dashboard outputs to GitHub. At the snapshot embedded in the README, the latest checkpoint showed equity of fifty four thousand five hundred sixty eight dollars with one open position, and the universe was qqq_plus_leverage_etfs. The README also includes both English and Chinese descriptions of the strategy and its research journey, reflecting the author's bilingual documentation style.

Editorial conclusion

The current execution version is Reversal 3.5, the research notebook stays at Reversal3.3.ipynb, and the live paper trading dashboard is published directly to the repository.