Sideways Market with Upside Momentum

11 min

Sideways Market with Upside Momentum

Risk Profile: Aggressive or Speculative or Income Traders
Trade Strategy: Market Sell-off with upside price momentum

This strategy takes advantage of markets that have sold off significantly from their 52-week high but appear to be in the early stages of bottoming. The price action is still negative as the market price is below the 200-day MA, but momentum is rising, indicating a potential bottom. This trade strategy could be used as income generating and a directional bet on the future price.

Sideways Market with Upside Momentum

Options Strategies/Bot Group: Sideways Market with Upside Momentum

In this case, we have three bots under the “Sideways Market with Upside Momentum” bot strategy:

Sideways Market with Upside Momentum

bottrading

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

Bots

In this case, we have three bots under the “Sideways Market with Upside Momentum” bot strategy:

Sideways Market with Upside Momentum - Sell Put Spread (40/20) - link
Sideways Market with Upside Momentum - Long Call 50/30/10 Butterfly - link
Sideways Market with Upside Momentum – Call Spread - link

Sideways Market with Upside Momentum

Bot Workflow

Sideways Market with Upside Momentum

Bot Rules: Trading Strategies

Create a schedule for the bot to run daily, weekly, or monthly.
Equity:
- Sideways Market with Upside Momentum
- Price Below 200 MA
- MA20 crosses above MA50
- Price > $10
- Stock is in +-20% Channel
Decision (Scripts):
- Check the following conditions:
  - Momentum rising for 5 periods
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.