As traders, one of our favorite trading strategy is the Long Short strategy. However, executing Shorts is not possible for some brokers unless you are connected to a broker that offers margin lending like TradeStation.
StockHero supports TradeStation (Margin) that finally allows traders to execute a sale of the stock without actually owning it.
A Long-Short strategy basically capitalize on the theory that what goes up will eventually come down. With StockHero, a trader can easily setup a Long-Short strategy using the following setup:
Connected to TradeStation (Margin)
Bot A, an Advanced Bot, is setup for a Long strategy. Bot A will enter a stock based on the trader’s entry conditions. On exiting, Bot A will call Bot B using StockHero’s Strategy Designer.
Bot B, also an Advanced Bot, is setup for a Short strategy. It will sell a stock when the entry condition is met and exit (buying back the short sale) when the exit conditions are met. On exiting, Bot B calls Bot A and the whole Long-Short cycle repeats.
In fact, StockHero is so powerful as a trading system that it allows traders to setup an infinitely possible number of combinations. For example, in a bull market, a trader may want to setup a Long-Long—(Long)-Short strategy. And vice versa for a bear market.
In order to implement the above strategy, be sure to connect to TradeStation (Margin) in your StockHero account.
For Premium and Professional users, please engage our complimentary White Glove Service to assist you in setting up your bots.
Now with StockHero, a trader can finally trade easier and not harder!