---
title: "Buy the Sell-off Strategy"
slug: "strategies-and-features-buy-the-sell-off"
description: "Dive into the \"Buy the Sell-off\" strategy, a custom trading approach using RSI and market movements to identify buying opportunities during sell-offs. Learn the open and close conditions, earnings handling, and specific options selections for effective trading performance."
tags: ["Buy the Sell-off", "Call Options", "Market Analysis Techniques", "TradeMachine Features", "Earnings Trading"]
updated: 2024-07-25T15:45:33Z
published: 2024-07-25T15:45:33Z
canonical: "learn.trademachine.com/strategies-and-features-buy-the-sell-off"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Buy the Sell-off Strategy

This is a discussion of the "Buy the Sell-off" strategy.

### Overview

- Long call diagonal
- 2 legs

### Buy the Sell-off Strategy Settings

- Buy the Sell-off Strategy utilizes a custom strategy which is labeled "qa_Diagonal_50-20_CS" under the custom strategy dropdown menu.

#### Buy the Sell-off Open Conditions:

- RSI 14 days below 25
- On the day, the stock moves down 0% or more

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2875%29.png)

#### Details on Options TradeMachine is Selecting for Buy the Sell-off Strategy:

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

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2873%29.png)

#### Earnings Handling for Buy the Sell-off Strategy:

- [Never Trade Earnings](/v1/docs/earnings-and-trademachine)

#### Buy the Sell-off Close Conditions:

- RSI 14 days above 40
- Options reach expiration (Close all legs with front month options)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2876%29.png)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2868%29.png)

#### Open next trade for Buy the Sell-off:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

[Video Transcript](https://learn.trademachine.com/docs/buy-the-sell-off-strategy-transcript)

## Related

- [Getting Started with the Today Tab](/getting-started-today-tab.md)