Bull Market Correction
11 min
Bull Market Correction
- Risk Profile: Aggressive or Speculative
- Trade Strategy: Market Lower by 15-30% and near 60-period low
The Golden Cross is a classic trading signal used to trade market bottoms. The key component of the strategy is when the 50-day moving average crosses above the 200-day moving average. It is a popular technical indicator in stock trading, mainly used to invest in markets that have been in a bear market but are showing signs of bottoming.
This strategy is well-suited for traders seeking to capitalize on a sharp correction in a bullish market trend. The primary objective is for the pullback to remain above the 200-day moving average, with prices near the 60-period low. Additionally, the correction should be substantial, at least 15%, and potentially up to 30%.
Bull Market Correction
Options Strategies/Bot Group: Pure Golden Cross
Options Strategies/Bot Group: Bull Market Correction
Bots
Bull Market Correction
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Navigate to "Bot Trading" or click on "Search Bots" from the drop-down menu.
Bots
In this case, we have two bots under the “Bull Market Correction” bot strategy:
Bull Market Correction
Bot Workflow
Bull Market Correction
Bot Rules: Trading Strategies
- Time:
- Create a schedule for the bot to run daily, weekly, or monthly.
- Equity:
- Pre-screen technical preferences and import them directly into the bots.
- Consider the following criteria:
- Bull Market Correction
- Price Above 200 MA
- Price 15%-30% below 52-Week High
- Price 60 Period low
- Price > $10
- Decision (Technical Indicator):
- Added additional Real-time or historical market or technical indicators as needed to optimize the performance or minimize losses.
- Open Position:
- Execute a Sell Put Spread or Bull Put Spread:
- Set DELTA at 40/20 (mid-price bid price).
- Ensure open interest is greater than 50.
- Close Order (OCO):
- Close the position if:
- Profit exceeds 75%.
- Loss exceeds 50%.
- Within 2 days before the expiry.