---
title: Bull Market Correction
slug: bull-market-correction
createdAt: 2024-06-09T19:14:11.691Z
---

# Bull Market Correction



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- **Risk Profile**: Aggressive or Speculative
- **Trade Strategy**: Market Lower by 15-30% and near 60-period low

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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%.

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![](https://lh7-us.googleusercontent.com/docsz/AD_4nXdrZ5SHkbUeOcj9GjYaOKvtuNUvyQtivjo-bfYyljw6gQoc5dS2yC0G-5vbzhZ_iOlTp7i1ZsnLmLaV5joZJo-jNhEs4tCangN9XHj5-qyKBKdSj8Tb67Q1FxURv48E6yvbiQ5bxc0Od5BAFG4I8EXoeCiRRDTKJ7eJAYyNnxkdtWU7HoHgRgY?key=dzPvRt3xrFu0R-RQVPJ1Ww "Bull Market Correction")

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## Options Strategies/Bot Group: Bull Market Correction

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![](https://lh7-us.googleusercontent.com/docsz/AD_4nXeg4s1M_uGXyQrxRO3N8xCU2AzdbZa8f0OtNp8S9bLTrqbPNxIQ_Mw2IIfMsTOhtXJ3iJJ5hhj6Lct7-nPt_5tDVluvcccRtW2i41u0MN3PK8anbqpzhDIek7SrksiNapWC180_5skDBK1UWrVNsRYr32_J_DBwxPDD6IybzU7Cd8d8SaV9r5M?key=dzPvRt3xrFu0R-RQVPJ1Ww "Bull Market Correction")

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![bottrading](https://api.archbee.com/api/optimize/t8kDfoa1USMGNZzQ2ltKT/BSb7dDZSt_p_m-L4pXyLM_screenshot-2024-06-09-at-14439-pm.png "bottrading")

Navigate to "Bot Trading" or click on "Search Bots" from the drop-down menu.

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### Bots

In this case, we have two bots under the “Bull Market Correction” bot strategy:

1. **Bull Market Correction - Long Call 50/30/10 Butterfly - [link](https://www.optioncircle.com/bot/bullmarketcorr-bf)**
2. **Bull Market Correction - Call Spread - [link](https://www.optioncircle.com/bot/bullmarketcorrcall)**

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![](https://lh7-us.googleusercontent.com/docsz/AD_4nXelhTLFPf_aqMdM1pcpGCQKwl5zi-M3AOD-i1K4TWNPvyXJUizoXCzjW78_PJCSuLDlGHnwWihjo6QeuqAuZvGJ4fpNyhA0Mcv-x5q19o1LBaxNbYig2wfD56-Zl03MqHNrUDfjkVMkPk14jwZ7CresLfQXZ38MmdFQcvKzS5lMAhXEO8gKLfY?key=dzPvRt3xrFu0R-RQVPJ1Ww "Bull Market Correction")

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### Bot Workflow

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXdR1Zn3WEbjZRsrpUL9xZlEqNX_FspCLo7eKdxCWNw45QKNeZ9c9OAPGT3CdyQNf6wVU1YAgkAbs58ZosPZE6OmipNMrDGQwbx7sMpixa9Bq47gBB6QWrb3gLMN9GayOhcH2f2O7ShX6ljj6ejjw9d1BeOuwoxwK1C9SND8MxraCCkfjLqSlg?key=dzPvRt3xrFu0R-RQVPJ1Ww "Bull Market Correction")

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### 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.

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