Strategies
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 options strategies/bot group pure golden cross options strategies/bot group linear regression trending up bots 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 long call 50/30/10 butterfly – https //www optioncircle com/bot/linreg mmfall5 bfy linear regression trending up – leaps https //www optioncircle com/bot/linreg mmfall leap linear regression trending up – call spread 40/20 https //www optioncircle com/bot/linreg mmfal5 call bot workflow 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