---
title: "Bearish Bursts Strategy"
slug: "strategies-and-features-bearish-bursts"
description: "Explore the \"Bearish Bursts\" strategy, a bearish trading approach utilizing moving averages and RSI to identify profitable opportunities. Understand the open and close conditions, earnings handling, and specific options selections that have outperformed the market across various timeframes, including the Great Recession."
tags: ["Bearish Bursts", "Bearish", "Simple Moving Average", "Moving Averages", "Delta", "Put Options", "Market Analysis Techniques", "TradeMachine Features", "Earnings Trading"]
updated: 2024-07-25T15:48:33Z
published: 2024-07-25T15:48:33Z
canonical: "learn.trademachine.com/strategies-and-features-bearish-bursts"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bearish Bursts Strategy

This is a discussion of the "Bearish Bursts" strategy. See the best combination of moving averages and RSI that have outperformed the market over 10-, 5-, 3-, 2-, and 1-year, as well as during the Great Recession with a bearish strategy.

### Overview

- Long put
- 1 leg

### Bearish Bursts Strategy Settings

#### Bearish Bursts Open Conditions:

- Stock crossed down through the 200-day SMA
- Stock below 50-day SMA
- 20-day RSI is above 30

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28109%29.png)

#### Details on Options TradeMachine is Selecting for Bearish Bursts Strategy:

- 1x **long 40 delta** put near **14 days to expiration**

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28110%29.png)

#### Earnings Handling for Bearish Bursts Strategy:

- [Never Trade Earnings](/v1/docs/earnings-and-trademachine)

#### Bearish Bursts Close Conditions:

- Gains above 40%
- Losses above 60%
- Options reach expiration

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28111%29.png)

#### Open next trade for Bearish Bursts:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

## Related

- [Getting Started with the Today Tab](/getting-started-today-tab.md)