Complex: Breakout 20-Day Period
Complex Golden Cross: Breakout 20-Day Period
Risk Profile: Aggressive or Speculative Trade Strategy: Market Bottoming
The Complex Golden Cross/Breaking Out is a market-bottoming strategy that uses the classic Golden Cross—where the 50-day Moving Average crosses the 200-day Moving average, but also adds in a few more filtering rules to achieve a better risk-reward opportunity. In addition to the golden cross, this complex strategy also has a requirement that the 20-day moving average has crossed above the 50-day moving average also. This will ensure a more smoothing process between long term and short-term trends. In addition, the price must be above the 200- day moving average, indicating positive price momentum. The last rule is that price is near the 20-day period high, indicating a possible breakout pattern to the upside. This is a strategy designed to catch rising momentum as trend begins to materialize.
Options Strategies/Bot Group: Complex Golden Cross: Breakout 20 Period High
Navigate to "Bot Trading" or click on "Search Bots" from the drop-down menu.
Bots
In this case, we have four bots under the “Complex Golden Cross - Breakout 20-Day Period bot strategy:
Bot Workflow
Bot Rules: Trading Strategies
- Time
- Create a schedule for the bot to run daily, weekly, or monthly.
- Equity:
- Complex Golden Cross: Breakout 20-Day Period
- Golden Cross (MA50 crosses MA200)
- Price Above 200 MA
- Price Broken Above 20 Period
- 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:
- Example: 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.