I've developed a bearish algorithm/screener that screens for stocks with identified selling pressure / trend followed by a dead cat bounce that is likely to fail - which we will attempt to short. I'm trying to combine trend following and VFI trading principles for the coming bear market.
Components:
1. 200 EMA: below current market price (this is so we don't get stuck in short squeezes and such) 2. 50 day moving average above current market price (we want past clearly identified weakness over a sufficiently long period) 3. 10 day moving average below current price (we want a stock that has attempted to rally from the lows) 4. CMF<-0.1 (we want to screen out bottoming patterns such as Inverse Head and Shoulders whenever we can) 5. Moving Averages Ratings: Buy, Neutral, Sell - we don't anything with strong MA momentum indicators, and we don't want to be short squeezed. 6. Market Cap, Price, volume requirements