---
title: Linear Regression Trending Up
slug: linear-regression-trending-up
createdAt: 2024-06-09T19:14:11.691Z
---



# 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

***

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.

***

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXcwJoFun6hyjvGxzRUhmQZuw83I17m58HCHaPK14tiDX5vL45BSYgrnTctzuWMuYZSqclngp4-e3WBayiQ7TjnM-JTMqyy1CeaACUkcpUO3BiIe663Kac3wEqcWNMvt0t1rN4FK7OSt1UerT4KZfd9aqCN8_kezmVOTL4mX0ZTIRvfcdMy7CRQ?key=2DbFOj9LUwiJ2HwC6bDAKw "Linear Regression Trending Up")

***

## Options Strategies/Bot Group: Linear Regression Trending Up

***

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXcV7gtnexZ-UBXx903WVEu1jfjdL22WKdRGhtBvD6WyQrDxQ0NGglDLL5iyjFysnjlW7bbp_NSfdez8Rp-WD0L11LOR9iLOhLpCDlICtuZR6tkVA67-GtVi97TDfuM1jZYFybPayvhSliOc8Ub4fL4FbhLMkAX3rsn7Yu-zpjOmO4VrN6DYPKA?key=2DbFOj9LUwiJ2HwC6bDAKw "Linear Regression Trending Up")

***



![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.

***

### Bots

In this case, we have two bots under the “Linear Regression Trending Up” bot strategy: 

1. **Linear Regression Trending Up - Long Call 50/30/10 Butterfly – [link](https://www.optioncircle.com/bot/linreg-mmfall5-bfy) **
2. **Linear Regression Trending Up – Leaps - [link](https://www.optioncircle.com/bot/linreg-mmfall-leap)**
3. **Linear Regression Trending Up – Call Spread 40/20 - [link](https://www.optioncircle.com/bot/linreg-mmfal5-call)**

***

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXe30F_CCvP5TyTB7va59G5mu9S8KZLFpajrOmDlIlB5CL5Im8-bt-vu1cSzRCyPdS_v9U41J3hYYPbY0C4z-9JYVlyKZ1xJRTtYT9GjCFf5Emb4zpCGwt-EjPVDBdvFoT789UAbi8OLPX0NsZtncLV5HLXcTGrGQ656rj3mc-1Kc773OG583ys?key=2DbFOj9LUwiJ2HwC6bDAKw "Linear Regression Trending Up")

***

### Bot Workflow

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXcqCVEIzhObLrdHuwWp1A-GAUL0T-02CmnQl-Y0iQ6kYvCJrwnrMdVKvYL8Rq2XNDV2JPSKUEr1Xz9FLj5VpTKa_uFwSWMgy9Vp1zKY0ywGKOZMZHxNDtSHlBb-ceEAW6Om1O_YNwAQcGHwVLEwZhG7RFcOQTyZR9M7DF-Ly7wtDq8B_umg018?key=2DbFOj9LUwiJ2HwC6bDAKw "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.

***