Three White Soldiers
11 min
Three White Soldiers
- Risk Profile: Aggressive, Speculative & Income
- Trade Strategy: Market lower by 50% from 52-week high with prices bottoming
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.
This strategy is driven by a market that has sold off by at least 50% from its 52-week high, long-term trend looks lower, but the shorter- term outlook is improving as the price is now above the 26-day MA and the Three White Soldiers pattern has emerged—which is Japanese Candlestick bottoming pattern that appears after a sharp downtrend
Three White Soldiers
Options Strategies/Bot Group: Pure Golden Cross
Options Strategies/Bot Group: Three White Soldiers
Bots
Three White Soldiers
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 “Three White Soldiers” bot strategy:
Three White Soldiers
Bot Workflow
Three White Soldiers
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:
- Three White Soldier
- Price below 200 MA
- Price Above 26MA
- Price > $10
- Price 50% Below 52 Week High
- 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 Put 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.