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Short Pressure Overhang Short

Updated dailyData needs: mediumshort onlylong short
paper
2016
Source
Drechsler-Drechsler 2016 RFS -- Shorting at Close Range: A Tale of Two Types.
Read the paper →

In plain terms

When informed short sellers maintain heavy positioning for weeks without triggering a squeeze, the persistent overhang is a reliable bearish signal.

How it works

Persistent short overhang (high short volume as a fraction of total volume, sustained over 4+ weeks) without a squeeze signals ongoing informed bearish positioning. The short overhang depresses price gradually as shorts steadily sell into any strength.

Live results

0 times picked on its own · 54 times inside a blend (43 beat the stock) · updated 2026-07-06
This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 54 such blended picks (43 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.
How its picks scored vs. buy & hold
Each pick is graded on a recent year it was never tuned on, against simply owning the same stock
Where its edge concentrates
Share of picks in each company-size group that beat buy & hold
How often it trades
Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often
Return vs. buy & hold
How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)
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Data dependencies

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • Finra short volume

    A data feed this strategy reads, refreshed on its normal schedule.

  • Borrow rates

    Daily borrow-fee curve from prime-broker feeds.

Expected edge

Tested over
2005-2011 (Drechsler-Drechsler)

Short overhang with no squeeze: ~3-6% 20-60 day underperformance vs universe.

Related families

Explore Short Pressure Overhang Short on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more