Public trading strategy
Fox buys Roku for $22 billion — trade the deal momentum on Roku and Fox
Created
Thesis
When a buyout is announced, the target company's stock usually surges to trade just below the offered purchase price. With Fox agreeing to buy Roku for $22 billion, Roku shares are rallying to a four-year high. Traders can attempt to capture the remaining gap between Roku's current trading price and the final buyout price, though there is always a risk the deal could fall through before it officially closes.
Strategy approach
Construct an event-driven long strategy for ROKU on the Daily timeframe. Enter at market open if the stock is up > 5% from the previous close. Use a tight 3% stop loss to protect against deal-breakdown risk, targeting the announced acquisition price.
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/ADX Signal Long (ROKU@1d) (2 conditions)
- Entry: ROC/ADX Signal Long (FOXA@1d) (2 conditions)
- Exit: TP: Near Resistance[2] (ROKU@1d) (1 condition)
- Exit: TP: Near Resistance[2] (FOXA@1d) (1 condition)
- Exit: SL: Below Support[2] (ROKU@1d) (1 condition)
- Exit: SL: Below Support[2] (FOXA@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "ROKU",
"timeframe": "1d"
},
{
"symbol": "FOXA",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"indicator": {
"name": "roc",
"period": 1
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 5
}
},
{
"left": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 25
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_roku",
"name": "ROC/ADX Signal Long (ROKU@1d)",
"priority": 1,
"trade_symbol": "ROKU"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "FOXA",
"timeframe": "1d"
},
"indicator": {
"name": "roc",
"period": 1
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 5
}
},
{
"left": {
"chart_ref": {
"symbol": "FOXA",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 25
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_foxa",
"name": "ROC/ADX Signal Long (FOXA@1d)",
"priority": 2,
"trade_symbol": "FOXA"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 2,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_1_roku",
"name": "TP: Near Resistance[2] (ROKU@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "ROKU"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 2,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_1_foxa",
"name": "TP: Near Resistance[2] (FOXA@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "FOXA"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_roku",
"name": "SL: Below Support[2] (ROKU@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "ROKU"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_foxa",
"name": "SL: Below Support[2] (FOXA@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "FOXA"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2,
"support_stop_rank": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "roc",
"period": 1
},
{
"name": "adx",
"period": 14
},
{
"name": "roc",
"period": 1
},
{
"name": "adx",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "ROKU",
"timeframe": "1d"
},
{
"symbol": "FOXA",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"indicator": {
"name": "roc",
"period": 1
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 5
}
},
{
"left": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 25
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_roku",
"name": "ROC/ADX Signal Long (ROKU@1d)",
"priority": 1,
"trade_symbol": "ROKU"
},
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "FOXA",
"timeframe": "1d"
},
"indicator": {
"name": "roc",
"period": 1
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 5
}
},
{
"left": {
"chart_ref": {
"symbol": "FOXA",
"timeframe": "1d"
},
"field": "adx",
"indicator": {
"name": "adx",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 25
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_foxa",
"name": "ROC/ADX Signal Long (FOXA@1d)",
"priority": 2,
"trade_symbol": "FOXA"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 2,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_1_roku",
"name": "TP: Near Resistance[2] (ROKU@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "ROKU"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 2,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_1_foxa",
"name": "TP: Near Resistance[2] (FOXA@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "FOXA"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_roku",
"name": "SL: Below Support[2] (ROKU@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "ROKU"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_foxa",
"name": "SL: Below Support[2] (FOXA@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "FOXA"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"risk_percent": 2,
"support_stop_rank": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Fox buys Roku for $22 billion — trade the deal momentum on Roku and Fox'. Thesis: When a buyout is announced, the target company's stock usually surges to trade just below the offered purchase price. With Fox agreeing to buy Roku for $22 billion, Roku shares are rallying to a four-year high. Traders can attempt to capture the remaining gap between Roku's current trading price and the final buyout price, though there is always a risk the deal could fall through before it officially closes.
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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