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Strategy Templates Overview

Stratify provides 4 pre-built strategy templates covering the most popular trading approaches. Each is fully configured, backtested, and ready to use - no coding required.

All templates are customizable: Adjust parameters, risk rules, and indicators to match your trading style. Use templates as-is or as starting points for custom strategies.

The 4 Strategy Templates

Each template represents a different trading philosophy with distinct risk-reward profiles:

Momentum Strategy

Rides trending markets by buying strong performers and selling weak ones. Uses RSI and moving averages to identify momentum.

Win Rate:45-55%
Avg Trade:5-15 days
Best For:Trending markets

Mean Reversion

Buys oversold stocks expecting bounce back to average. Based on statistical mean reversion principle.

Win Rate:55-65%
Avg Trade:2-7 days
Best For:Range-bound markets

Breakout Strategy

Catches explosive moves by buying when price breaks resistance with high volume. Aims for large wins.

Win Rate:35-45%
Avg Trade:3-10 days
Best For:Consolidation → Trend

Sentiment Strategy

Combines social media buzz with technical signals. Trades when positive sentiment aligns with setups.

Win Rate:40-50%
Avg Trade:1-5 days
Best For:News-driven stocks

Strategy Comparison Matrix

Quick reference to help choose the right strategy:

StrategyPhilosophyRisk LevelTrading Freq.Typical Sharpe
Momentum
Trend followingMedium10-20/month0.8 - 1.5
Mean Reversion
Counter-trendLow-Medium15-30/month1.0 - 2.0
Breakout
Early trend captureMedium-High5-15/month0.6 - 1.2
Sentiment
Event-drivenHigh8-20/month0.5 - 1.3

When to Use Each Strategy

Use Momentum When:

  • Markets are in clear uptrends or downtrends
  • You want to ride strong price movements
  • You're comfortable holding through minor pullbacks
  • You prefer medium-term trades (1-3 weeks)
  • You want strategies that work across many stocks

Best stocks: Large-cap tech (AAPL, MSFT, NVDA), momentum ETFs (QQQ, ARKK)

Use Mean Reversion When:

  • Markets are range-bound without clear trend
  • You want higher win rates (but smaller wins)
  • You're buying dips in quality stocks
  • You prefer shorter hold times (2-7 days)
  • You want more frequent trading opportunities

Best stocks: Blue chips (JNJ, PG, KO), stable ETFs (SPY, DIA), high P/E growth stocks

Use Breakout When:

  • Stocks are consolidating in tight ranges
  • You want to catch explosive moves early
  • You can tolerate lower win rates for big wins
  • You're patient and wait for A+ setups
  • You understand that many breakouts fail

Best stocks: Growth stocks near highs, small-caps (RIVN, PLTR), sector leaders breaking out

Use Sentiment When:

  • Trading news-sensitive or meme stocks
  • You monitor social media and news flows
  • You want to ride viral momentum
  • You're comfortable with high volatility
  • You can act quickly when sentiment shifts

Best stocks: High social volume stocks (TSLA, GME, AMC), crypto-related (COIN, MSTR), IPOs

Multi-Strategy Portfolio Approach

Consider running multiple strategies simultaneously for diversification:

Example Portfolio Mix

40%
Momentum
Core trend-following positions
30%
Mean Reversion
Higher frequency, stable returns
20%
Breakout
Capture occasional home runs
10%
Sentiment
Speculative/event-driven trades

Benefit: Different strategies profit in different market conditions, smoothing overall returns and reducing drawdowns.

Customizing Templates

All templates can be customized to match your style:

Adjust Risk Parameters

  • Stop loss tighter/wider
  • Take profit levels
  • Position sizing
  • Max concurrent positions

Tune Indicators

  • RSI period and thresholds
  • Moving average lengths
  • Volume multipliers
  • Sentiment thresholds

Filter Entry Conditions

  • Add volume confirmation
  • Require trend alignment
  • Market regime filters
  • Time-of-day restrictions

Exit Rules

  • Trailing stops
  • Time-based exits
  • Opposite signal exits
  • Partial profit taking

Getting Started with Templates

  1. Backtest each template - Run on your target stocks for 2+ years to see historical performance
  2. Compare results - Use the Results tab to compare all strategies side-by-side
  3. Choose 1-2 strategies - Pick strategies that match your risk tolerance and market view
  4. Paper trade first - Deploy to paper trading for 1-2 months before using real money
  5. Monitor and adjust - Track performance and tweak parameters as needed

Important: No strategy works all the time. Expect losing periods and drawdowns. The key is consistency and proper risk management, not perfection.

Learn More About Each Strategy

Momentum Strategy Guide →

Complete guide to momentum trading: indicators, parameters, and best practices

Mean Reversion Guide →

Deep dive into mean reversion: when it works and how to trade it effectively

Breakout Strategy Guide →

Master breakout trading: identifying setups and managing false breakouts

Sentiment Strategy Guide →

Trade with social sentiment: combining buzz with technical analysis

←Previous: Backtesting GuideNext: Momentum Strategy→