Bollinger Buy the Dip Strategy

This is a discussion of the "Bollinger Buy the Dip" strategy.

Overview

• Long call diagonal
• 2 legs

Bollinger Buy the Dip Strategy Settings

• Bollinger Buy the Dip Strategy utilizes a custom strategy which is labeled "qa_Diagonal_50-20_CS" under the custom strategy dropdown menu.

Bollinger Buy the Dip Open Conditions:

• RSI 14 Days below 30
• Stock price crosses down through Bollinger Bands Lower Band
  Bollinger Band Setup: SMA 20 Days band width of 2 Standard Deviations

Details on Options TradeMachine is Selecting for Bollinger Buy the Dip Strategy:

• 1x long 50 delta call near 60 days to expiration
• 1x short 20 delta call near 30 days to expiration

Earnings Handling for Bollinger Buy the Dip Strategy:

• Never Trade Earnings

Bollinger Buy the Dip Close Conditions:

• Options reach expiration (Close all legs with front month options)

Open next trade for Bollinger Buy the Dip:

• At Normal Time