strategy-patterns

name	strategy-patterns
description	Use this skill when the user asks which strategy to use, how to build a trading system, how to select between trend-following and mean-reversion, what works in the current market regime, or when designing an entry/exit/stop framework for any equity or ETF. Also use when the user describes market conditions and wants a structured approach.
license	MIT
metadata	{"author":"quantagent","version":"1.0"}
allowed-tools	compute_technical_indicators, run_backtest_tool, get_ohlcv_data

Strategy Patterns

Overview

Strategy selection must always start with regime detection. A strategy that works in a trending market will fail in a ranging one. This skill defines the selection logic and the canonical entry/exit/stop templates for each regime.

Step 1: Classify the Regime

1. Fetch 1y OHLCV, compute ADX(14) and SMA(200)
2. Check current VIX level (via get_economic_indicators)
3. Classify:

Condition	Regime
ADX > 25 + price > SMA(200)	Bull trend
ADX > 25 + price < SMA(200)	Bear trend
ADX < 20	Ranging
VIX > 25	High volatility (reduce size, avoid new entries)

Step 2: Select Strategy

Regime	Recommended	Baseline
Bull trend	sma_crossover, macd_momentum	buy_and_hold
Bear trend	Defensive / inverse ETF	Cash
Ranging	rsi_mean_reversion	buy_and_hold
High vol	Reduce position size only	buy_and_hold

Strategy Templates

Trend-Following (Bull Regime)

Entry: EMA(12) crosses above EMA(26) + ADX > 25 + price > SMA(200) Exit: EMA(12) crosses below EMA(26) OR price drops 2×ATR(14) from high Stop: 2×ATR(14) below entry

RSI Mean-Reversion (Ranging Regime)

Entry: RSI(14) < 30 + price at or below lower Bollinger Band(20,2) Exit: RSI(14) > 55 OR price reaches middle Bollinger Band Stop: Below recent 10-day swing low

MACD Momentum (Trending Only)

Entry: MACD line crosses above signal line + histogram turning positive + ADX > 20 Exit: MACD line crosses below signal line Stop: Below EMA(26) at entry bar

Reporting Format

For any strategy recommendation, state:

1. Regime classification and evidence (ADX value, price vs SMA200)
2. Strategy selected and why
3. Specific entry condition (exact indicator values)
4. Exit condition
5. Stop-loss level in both % and dollar terms
6. Backtest summary (must be run before finalizing recommendation)

Supporting files

• regime_matrix.md — extended regime classification matrix with edge cases