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When Do I "Long-Short"?

The "Long-Short" market order direction strategy seeks to seize every market trend, both upward and downward. As such, with this option activated, you'll always be engaged in the market, taking "long" positions in a bullish market and "short" trades when the market is bearish.

However, while it may seem like this strategy would capture every profitable market move, that's not necessarily the case, especially during volatile or sideways moving markets. In such scenarios, stop-loss for both order types could be triggered, leading to potential losses.

Thus, before adopting a long-short strategy, it's advisable to first backtest the performance using the TradeDots' backtesting tool for buy and sell alerts.

Long Short Orders DocuSign

Long Short Orders Tesla

This strategy yields the best return when the market oscillates between sustained bullish and bearish trends, each trend period should be long enough for the strategy to capture the significant moves before the market trend shifts.

Predicting long-term future asset trends can be challenging, making this strategy advanced and potentially risky. Traders should be well aware of these factors before employing a long-short market order direction strategy.

Note: All scripts and indicators offered by TradeDots are intended for educational and informational use. Past performance is no guarantee of future results.