Strategy Examples · Lesson 4.2

Value plus trend filter

This strategy adds a long-term trend filter on top of the simple value pattern. It refuses to buy stocks that are cheap but still falling, at the cost of slightly later entries.

The rules

Buy signal (`ALL`): MARGIN_OF_SAFETY IS_AT_OR_ABOVE 0.20 AND PRICE IS_ABOVE DAILY_SMA_200
Sell level: MARGIN_OF_SAFETY IS_BELOW 0, sellPercent = 100
Final exit: PRICE CROSSES_BELOW DAILY_SMA_200

Why it works

Pure value buys can stay cheap for a long time before recovering. Requiring price above the 200-day SMA filters out the slowest recoveries and most value traps without giving up the valuation discipline.

Create an account to try this in the live product.

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Price above SMA 200Technical Signals
Trend filters with valuationTechnical Signals