When Do I "Short Only"?

The "Short Only" market order direction is specifically designed to limit entries in a Swing Trading strategy to only "short" positions.

This implies that you continually short sell in the market and buy back your positions without ever holding a positive quantity of the trading asset.

This option is usually chosen when the market is in a clear bearish phase, where short selling assets presents a higher probability of profit compared to going long.

Determining whether this approach suits your needs is relatively simple. Once you enable the "Smart Trend" feature, you can assess the overall market condition. If you notice more red backgrounds than green ones, and the green regions are typically shallow, this suggests that the market is frequently in a bearish state.

For additional confirmation, you can utilize TradeDots' backtesting tool. This helps calculate the profit and loss associated with different market order directions, providing valuable insights for your trading decisions.

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