Linear Regression Trending Up
11 min
Linear Regression Trending Up
- Risk Profile: Aggressive or Speculative
- Trade Strategy: Bull market strategy with price above the 200-day MA and linear regression trending
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.
Bull market strategy with solid trending market in place, as indicated by linear regression model. The key to implementing this strategy is waiting for a pullback in price of 10-15%, and short-term momentum falling over a 5-10 period time frame. Price action is still above the 200-day MA after a pullback in price.
Linear Regression Trending Up
Options Strategies/Bot Group: Pure Golden Cross
Options Strategies/Bot Group: Linear Regression Trending Up
Bots
Linear Regression Trending Up
bottrading
Navigate to "Bot Trading" or click on "Search Bots" from the drop-down menu.
Bots
In this case, we have two bots under the “Linear Regression Trending Up” bot strategy:
Linear Regression Trending Up
Bot Workflow
Linear Regression Trending Up
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:
- Linear Regression Trending Upwards
- Price above 200 MA
- Price 15%-30% Below 52-Week High
- Price > $10
- Month over Month (MoM) Falling for 5+ Periods
- 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 Call Spread, Butterfly & Leaps
- 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.