Public trading strategy
Wall Street defends AI plumbing stocks — accumulate optical networking picks
Created
Thesis
While everyone focuses on the big AI chipmakers, the companies building the plumbing that connects those chips are seeing massive order books. Today, JPMorgan defended Lumentum, while analysts specifically highlighted Semtech and Ciena for their critical roles in AI data centers. Because these stocks are less crowded than the headline AI names, they have more room to run as data center build-outs accelerate. Buying a basket of these networking picks captures the next wave of AI spending.
Strategy approach
Build a rotation strategy across LITE, SMTC, CIEN, and HPE. Rank the four stocks by 5-day relative strength vs the SPY. Enter long the top 2 ranked stocks on the next open if they are above their 20-day EMA. Hold for 10 trading days or exit if either stock closes below its 10-day EMA. Equal-weight allocation.
Markets and timeframes
Entry and exit at a glance
These are the named rules in the shared configuration. Review the full conditions below before using a strategy.
- Entry: ROC/EMA Signal Long (SPY@1d) (2 conditions)
- Exit: Position Exit Rule (SPY@1d) (1 condition)
- Exit: SL: Position Exit Rule (SPY@1d) (1 condition)
- Exit: TP: Position Exit Rule (SPY@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "SPY",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "roc",
"period": 5
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 0
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "ROC/EMA Signal Long (SPY@1d)",
"priority": 1,
"trade_symbol": "SPY"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule (SPY@1d)",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"left": {
"field": "entry_price",
"type": "position"
},
"op": "Subtract",
"right": {
"left": {
"type": "constant",
"value": 2
},
"op": "Multiply",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "atr",
"period": 14
},
"type": "indicator"
},
"type": "arithmetic"
},
"type": "arithmetic"
}
}
],
"enabled": true,
"id": "exit_2",
"name": "SL: Position Exit Rule (SPY@1d)",
"priority": 10,
"purpose": "stop_loss",
"target_symbol": "SPY"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"left": {
"field": "entry_price",
"type": "position"
},
"op": "Add",
"right": {
"left": {
"type": "constant",
"value": 3
},
"op": "Multiply",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "atr",
"period": 14
},
"type": "indicator"
},
"type": "arithmetic"
},
"type": "arithmetic"
}
}
],
"enabled": true,
"id": "exit_3",
"name": "TP: Position Exit Rule (SPY@1d)",
"priority": 11,
"purpose": "take_profit",
"target_symbol": "SPY"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2,
"stop_loss_percent": 8,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "roc",
"period": 5
},
{
"name": "ema",
"period": 20
},
{
"name": "ema",
"period": 10
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "SPY",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "roc",
"period": 5
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 0
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "ROC/EMA Signal Long (SPY@1d)",
"priority": 1,
"trade_symbol": "SPY"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 20
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule (SPY@1d)",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"left": {
"field": "entry_price",
"type": "position"
},
"op": "Subtract",
"right": {
"left": {
"type": "constant",
"value": 2
},
"op": "Multiply",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "atr",
"period": 14
},
"type": "indicator"
},
"type": "arithmetic"
},
"type": "arithmetic"
}
}
],
"enabled": true,
"id": "exit_2",
"name": "SL: Position Exit Rule (SPY@1d)",
"priority": 10,
"purpose": "stop_loss",
"target_symbol": "SPY"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"left": {
"field": "entry_price",
"type": "position"
},
"op": "Add",
"right": {
"left": {
"type": "constant",
"value": 3
},
"op": "Multiply",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "atr",
"period": 14
},
"type": "indicator"
},
"type": "arithmetic"
},
"type": "arithmetic"
}
}
],
"enabled": true,
"id": "exit_3",
"name": "TP: Position Exit Rule (SPY@1d)",
"priority": 11,
"purpose": "take_profit",
"target_symbol": "SPY"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2,
"stop_loss_percent": 8,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Wall Street defends AI plumbing stocks — accumulate optical networking picks'. Thesis: While everyone focuses on the big AI chipmakers, the companies building the plumbing that connects those chips are seeing massive order books. Today, JPMorgan defended Lumentum, while analysts specifically highlighted Semtech and Ciena for their critical roles in AI data centers. Because these stocks are less crowded than the headline AI names, they have more room to run as data center build-outs accelerate. Buying a basket of these networking picks captures the next wave of AI spending.
Performance
No trade count, win rate, or realized P&L figures are provided in this public preview. The thesis and shared rules do not establish a performance record.
What this public preview can establish
- The thesis and strategy approach describe a market view. They do not show whether an entry or exit condition is currently met.
- Technical strategy fields are shared above. Inspect the actual conditions and check when they were evaluated before relying on them.
- No trade count, win rate, or P&L figure is published in this preview. It cannot establish a performance record.
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