Get the Stretch Fade Rules Free
Get the complete rules and code for Stretch Fade, the same-day ETF short with a worst drawdown of -5.14% in a backtest from January 2010 to August 2026.
$100,000 grew to $136,115 from January 2010 to August 2026. The dashed line marks where the out-of-sample test starts: the system was built on data to the end of 2019.
Holding SPY the whole time made far more money ($764,249) but fell 30.25% in 2020. Stretch Fade earns little on its own and did best in 2018 and 2022, the two years SPY fell. It was built on data to the end of 2019; everything after that is the out-of-sample test. Backtest from January 2010 to August 2026. Hypothetical backtested results. Past performance is not a reliable indicator of future performance.
What You Get, Free
- The complete trading rules: the exact stretch threshold, trend and market filters, limit price and exit. Nothing held back.
- Ready-to-run code for RealTest, so you can test it yourself in minutes.
- The 53 ETFs it watches, and why most of the edge comes from the leveraged and inverse funds.
- The 10-minute daily routine to place limit orders for the open each evening and close every trade the same day.
The Stretch Fade System Does 3 Things
- Waits for an ETF in a downtrend to rally too far, too fast.
- Shorts the open only if the ETF gaps up again.
- Covers at the close the same day. No overnight positions and no stop loss.
The honest part: it makes only 2.12% a year on its own and goes quiet in steady bull markets. It is built as a small allocation of capital alongside long systems, and its best years were 2018 and 2022, when the S&P 500 fell.
What Traders Say
"I have found Adrian and his coaches to be fantastic at assisting in navigating systematic trading and learning Real test which is very technical."
"Adrian is one of the very few people in this industry who offers genuine, sound help. In a space often filled with 'grab and run' tactics, Adrian was incredibly friendly and took the time to offer me valuable advice for free, without trying to push a sale."
About Your Mentor
I'm Adrian Reid, founder of Enlightened Stock Trading. I've been trading systematically for over 25 years, across stocks, ETFs, crypto and global markets. I founded Enlightened Stock Trading in 2014, and since then I have mentored hundreds of traders worldwide to move from erratic, emotional trading to consistent, confident, rules-based trading.
I publish some of the systems I research so you can see exactly how a tested system is built: the rules written down, a benchmark it has to beat, and a check on data it was never built on.
Questions People Ask
Where do I get the rules?
In the Trading Strategy Hub, our free members' area. Your login arrives by email a few minutes after you sign up, and the rules and code are inside.
Do I need RealTest?
No. The rules are written in plain English, so you can follow them yourself or code them in the platform you use. The RealTest code is included for RealTest users. If you don't have RealTest yet, tick the RealTest Launchpad box: the free course shows you how to get a free trial and get the code running.
Is it really free?
Yes. No credit card, and nothing to cancel.
Is this financial advice?
No. It is general education about how a trading system is built and tested. The results are hypothetical backtests, not a promise of future returns, and whether any system suits you is your decision.
Get the Complete Rules Free
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