Public trading strategy
When a biotech stock drops after receiving the exact good news everyone was wait
Created
Thesis
When a biotech stock drops after receiving the exact good news everyone was waiting for, it usually means investors who bought in anticipation are now taking profits. That wave of selling can push the price well below what the company is actually worth now that it has an approved drug it can sell. Once the profit-takers are done, the stock often bounces back as new buyers step in at the discounted price. This creates a short-term buying opportunity for traders willing to go against the crowd.
Strategy approach
When a biotech stock drops after receiving the exact good news everyone was waiting for, it usually means investors who bought in anticipation are now taking profits. That wave of selling can push the price well below what the company is actually worth now that it has an approved drug it can sell. Once the profit-takers are done, the stock often bounces back as new buyers step in at the discounted price. This creates a short-term buying opportunity for traders willing to go against the crowd. Decision analysis profile: value. Required dimensions: valuation_method, valuation_sensitivity, business_economics, cash_quality, balance_sheet_leverage, dilution_capital_allocation, moat, catalysts, counterevidence, invalidation.
Markets and timeframes
REPL1D
Latest published rule evaluation
Evaluated . This is a dated rule snapshot, not a live price or trade execution confirmation.
REPL · 1d
2 of 4 published entry conditions marked met.
- RSI (14) below 40 — far
- Price below Bollinger (20) — met
- RSI (14) above 45 — met
- MACD (12,26,9) crossed above MACD (12,26,9) — near
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: RSI/BB/MACD Crossover Long (REPL@1d) (4 conditions)
- Exit: Position Exit Rule (1 condition)
- Exit: TP: Fib Extension 127.2% (REPL@1d) (1 condition)
- Exit: TP: Near Resistance[1] (REPL@1d) (1 condition)
- Exit: SL: Below Support[1] (REPL@1d) (1 condition)
- Exit: Stop Loss at 2.0% (1 condition)
- Exit: Take Profit at 4.0% (1 condition)
- Exit: SL: Fib Retracement 78.6% (REPL@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "STOCK:REPL",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 45
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"indicator": {
"fast": 12,
"name": "macd",
"signal": 9,
"slow": 26
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "signal",
"indicator": {
"fast": 12,
"name": "macd",
"signal": 9,
"slow": 26
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "RSI/BB/MACD Crossover Long (REPL@1d)",
"priority": 1,
"trade_symbol": "STOCK:REPL"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"ratio": 1272,
"type": "fibonacci_extension"
}
}
],
"enabled": true,
"id": "exit_2",
"name": "TP: Fib Extension 127.2% (REPL@1d)",
"priority": 96,
"purpose": "take_profit",
"target_symbol": "STOCK:REPL"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3",
"name": "TP: Near Resistance[1] (REPL@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "STOCK:REPL"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "crossed_above",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_4",
"name": "SL: Below Support[1] (REPL@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "STOCK:REPL"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -2
}
}
],
"enabled": true,
"id": "exit_5",
"name": "Stop Loss at 2.0%",
"priority": 100,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 4
}
}
],
"enabled": true,
"id": "exit_6",
"name": "Take Profit at 4.0%",
"priority": 100,
"purpose": "take_profit"
},
{
"applies_to": "long",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"ratio": 786,
"type": "fibonacci_retracement"
}
}
],
"enabled": true,
"id": "exit_7",
"name": "SL: Fib Retracement 78.6% (REPL@1d)",
"priority": 100,
"purpose": "stop_loss"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 786,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "rsi",
"period": 14
},
{
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
{
"fast": 12,
"name": "macd",
"signal": 9,
"slow": 26
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "STOCK:REPL",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 45
}
},
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"indicator": {
"fast": 12,
"name": "macd",
"signal": 9,
"slow": 26
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "signal",
"indicator": {
"fast": 12,
"name": "macd",
"signal": 9,
"slow": 26
},
"type": "indicator"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "RSI/BB/MACD Crossover Long (REPL@1d)",
"priority": 1,
"trade_symbol": "STOCK:REPL"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "holding_period_bars",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"ratio": 1272,
"type": "fibonacci_extension"
}
}
],
"enabled": true,
"id": "exit_2",
"name": "TP: Fib Extension 127.2% (REPL@1d)",
"priority": 96,
"purpose": "take_profit",
"target_symbol": "STOCK:REPL"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3",
"name": "TP: Near Resistance[1] (REPL@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "STOCK:REPL"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "crossed_above",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_4",
"name": "SL: Below Support[1] (REPL@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "STOCK:REPL"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -2
}
}
],
"enabled": true,
"id": "exit_5",
"name": "Stop Loss at 2.0%",
"priority": 100,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 4
}
}
],
"enabled": true,
"id": "exit_6",
"name": "Take Profit at 4.0%",
"priority": 100,
"purpose": "take_profit"
},
{
"applies_to": "long",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "STOCK:REPL",
"timeframe": "1d"
},
"ratio": 786,
"type": "fibonacci_retracement"
}
}
],
"enabled": true,
"id": "exit_7",
"name": "SL: Fib Retracement 78.6% (REPL@1d)",
"priority": 100,
"purpose": "stop_loss"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 786,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'When a biotech stock drops after receiving the exact good news everyone was waiting for, it usually means investors who bought in anticipation are now taking profits. That wave of selling can push the price well below what the company is actually worth no'. Thesis: When a biotech stock drops after receiving the exact good news everyone was waiting for, it usually means investors who bought in anticipation are now taking profits. That wave of selling can push the price well below what the company is actually worth now that it has an approved drug it can sell. Once the profit-takers are done, the stock often bounces back as new buyers step in at the discounted price. This creates a short-term buying opportunity for traders willing to go against the crowd.
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 dated rule snapshot above shows the conditions evaluated at that time. It does not prove a current trigger or executed trade.
- 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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