SKF Shorting Strategy

When SKF has climbed to these levels, both in terms of price and 'overboughtness', it has presented a good shorting opportunity.

Note: SKF has only been around for about two years which limits the amount of backtesting that can be done on it. Also, it is amazingly volatile so use caution. I have not tested this strategy with puts; however, I would expect options to add just one more level of shenanigans that SKF is already subject to.

This strategy sells strength, using RSI as its overbought metric. It returns favorable results using everything from a 2 to a 5 day RSI (of course, what is considered overbought needs to be changed depending on which one you use). Below is shown using the 5 day RSI (screenshot 2). Anything over 80 was considered overbought. It covers when the 5 day RSI crosses below 60. Results are shown in the last screen shot. The strategy itself is nothing new but its results on SKF are noteworthy. It may prove to be a good strategy for some of the other derelict ultra long/short ETFs as well.