---
title: Sideways Market with Upside Momentum
slug: sideways-market-with-upside-momentum
createdAt: 2024-06-09T18:49:50.769Z
---

# Sideways Market with Upside Momentum



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

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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.

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![Sideways Market with Upside Momentum](https://lh7-us.googleusercontent.com/docsz/AD_4nXfhFFCqYEL1Kvj-OwY4iOeOf3y-chjCpzdb_YO1QTVQkj2l4cbykuz6KTL0ERl8jYHX5csCEMyRh8uHYVBGypMC7jDjxeY-eSlfIjxIwpmH72f2vnWkl8gs2tpSf4dU0aOFBnVcntdtFkBim44o06_gXs1s32sgyQPGwptnSs-hsfCJDUeuVg?key=02GHaU_-Jx3pr87m7uTzFQ "Sideways Market with Upside Momentum")

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## Options Strategies/Bot Group: Sideways Market with Upside Momentum

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![Sideways Market with Upside Momentum](https://lh7-us.googleusercontent.com/docsz/AD_4nXeu_u-g7p64jYVvT_ERYsd8Mee-hJR9UAOauFXC5zZoAdnXABpgu2qMaL1SPC4UYIxxAxEJjkvPQntkYw0ea-5JTup5osO-dm8muAUsFU7ISJmSnjkLh2gqZ7nnoBcBYlE6jqxqMJPR7TSOC3EJblMt7X_jBBXKE64dKUSY7GVpSjOFf74SnFY?key=02GHaU_-Jx3pr87m7uTzFQ "Sideways Market with Upside Momentum")

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![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.

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### Bots 

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

1. **Sideways Market with Upside Momentum - Sell Put Spread (40/20) **- [link](https://www.optioncircle.com/bot/SideWays-UpsideMom)
2. **Sideways Market with Upside Momentum - Long Call 50/30/10 Butterfly **- [link](https://www.optioncircle.com/bot/sdwy-mark-upmom-bu)
3. **Sideways Market with Upside Momentum – Call Spread **- [link](https://www.optioncircle.com/bot/sdway-upmom-callsp) 

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![Sideways Market with Upside Momentum](https://lh7-us.googleusercontent.com/docsz/AD_4nXeO_lVZ88PSZJcS9b5NieePF82ZJdZB3uaoXwXriR48k7oBDNVbjGVSegwO4iBWzLT98lOUR0Gtpzz976peqPlVS8FRluCxonnPYB4yEeTN8z6dtTppE7WZOE3v3QHcm7_3ZoAq327VUtWJkGiZ-zWWOoieJ0xRFiER6rLOwM8Orz5-nb-dP5c?key=02GHaU_-Jx3pr87m7uTzFQ "Sideways Market with Upside Momentum")

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### Bot Workflow

![Sideways Market with Upside Momentum](https://lh7-us.googleusercontent.com/docsz/AD_4nXcnQT8jau5jM9ZnM01JeoxEIc6P5SMtYTvg7ys86l4g8zF7Ok1_o5sWJvUNS__2g2K5awG0dVZ7jXGV6tjHNtJ3F4CdSoxYhXOBjo0CfACDryeonlbx48OvP32PJokuiwawfotk1dIJyR2nB7rK5bwrdbTqDXI384bUk9jruq1PIYBNbtKU4rg?key=02GHaU_-Jx3pr87m7uTzFQ "Sideways Market with Upside Momentum")

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### 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.

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