Roku is shopping itself for a buyout — jump in before a deal is announced

Thesis

When a company is rumored to be for sale, its stock usually jumps because buyers have to pay a premium to take it over. Even if a deal doesn't happen immediately, the chatter alone brings in a wave of traders hoping to cash in, which pushes the price up in the short term. It's a classic speculative pop, but you want to be in early and watch closely.

Strategy approach

Build a long-only momentum strategy on ROKU on the Daily timeframe. Entry: Buy on the next open if the stock's daily volume is > 150% of its 20-day average volume. Exit: Close the position if the daily closing price drops below the 10-day simple moving average, or after a maximum hold of 20 trading days.

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: OBV Signal Long (ROKU@1d) (1 condition)
• Exit: Position Exit Rule (ROKU@1d) (1 condition)
• Exit: Stop Loss at 5.0% (1 condition)
• Exit: Take Profit at 10.0% (1 condition)

Shared strategy rules

{
  "data_dependencies": [
    {
      "symbol": "ROKU",
      "timeframe": "1d"
    }
  ],
  "entry_rules": [
    {
      "conditions": [
        {
          "left": {
            "chart_ref": {
              "symbol": "ROKU",
              "timeframe": "1d"
            },
            "indicator": {
              "name": "obv"
            },
            "type": "indicator"
          },
          "operator": "greater_than",
          "right": {
            "type": "constant",
            "value": 150
          }
        }
      ],
      "direction": "long",
      "enabled": true,
      "id": "entry_1",
      "name": "OBV Signal Long (ROKU@1d)",
      "priority": 1
    }
  ],
  "exit_rules": [
    {
      "applies_to": "both",
      "conditions": [
        {
          "left": {
            "field": "close",
            "type": "price"
          },
          "operator": "less_than",
          "right": {
            "chart_ref": {
              "symbol": "ROKU",
              "timeframe": "1d"
            },
            "indicator": {
              "name": "sma",
              "period": 10
            },
            "type": "indicator"
          }
        }
      ],
      "enabled": true,
      "id": "exit_1",
      "name": "Position Exit Rule (ROKU@1d)",
      "priority": 1,
      "purpose": "signal"
    },
    {
      "applies_to": "both",
      "conditions": [
        {
          "left": {
            "field": "unrealized_pnl_percent",
            "type": "position"
          },
          "operator": "less_than_or_equal",
          "right": {
            "type": "constant",
            "value": -5
          }
        }
      ],
      "enabled": true,
      "id": "exit_2",
      "name": "Stop Loss at 5.0%",
      "priority": 10,
      "purpose": "stop_loss"
    },
    {
      "applies_to": "both",
      "conditions": [
        {
          "left": {
            "field": "unrealized_pnl_percent",
            "type": "position"
          },
          "operator": "greater_than_or_equal",
          "right": {
            "type": "constant",
            "value": 10
          }
        }
      ],
      "enabled": true,
      "id": "exit_3",
      "name": "Take Profit at 10.0%",
      "priority": 11,
      "purpose": "take_profit"
    }
  ],
  "position_sizing": {
    "max_position_percent": 25,
    "method": {
      "type": "allocation"
    },
    "min_position_value": 100
  },
  "trigger_timeframe": "1d",
  "version": 1
}

{
  "indicators": [
    {
      "name": "obv"
    },
    {
      "name": "sma",
      "period": 10
    }
  ]
}

{
  "data_dependencies": [
    {
      "symbol": "ROKU",
      "timeframe": "1d"
    }
  ],
  "entry_rules": [
    {
      "conditions": [
        {
          "left": {
            "chart_ref": {
              "symbol": "ROKU",
              "timeframe": "1d"
            },
            "indicator": {
              "name": "obv"
            },
            "type": "indicator"
          },
          "operator": "greater_than",
          "right": {
            "type": "constant",
            "value": 150
          }
        }
      ],
      "direction": "long",
      "enabled": true,
      "id": "entry_1",
      "name": "OBV Signal Long (ROKU@1d)",
      "priority": 1
    }
  ],
  "exit_rules": [
    {
      "applies_to": "both",
      "conditions": [
        {
          "left": {
            "field": "close",
            "type": "price"
          },
          "operator": "less_than",
          "right": {
            "chart_ref": {
              "symbol": "ROKU",
              "timeframe": "1d"
            },
            "indicator": {
              "name": "sma",
              "period": 10
            },
            "type": "indicator"
          }
        }
      ],
      "enabled": true,
      "id": "exit_1",
      "name": "Position Exit Rule (ROKU@1d)",
      "priority": 1,
      "purpose": "signal"
    },
    {
      "applies_to": "both",
      "conditions": [
        {
          "left": {
            "field": "unrealized_pnl_percent",
            "type": "position"
          },
          "operator": "less_than_or_equal",
          "right": {
            "type": "constant",
            "value": -5
          }
        }
      ],
      "enabled": true,
      "id": "exit_2",
      "name": "Stop Loss at 5.0%",
      "priority": 10,
      "purpose": "stop_loss"
    },
    {
      "applies_to": "both",
      "conditions": [
        {
          "left": {
            "field": "unrealized_pnl_percent",
            "type": "position"
          },
          "operator": "greater_than_or_equal",
          "right": {
            "type": "constant",
            "value": 10
          }
        }
      ],
      "enabled": true,
      "id": "exit_3",
      "name": "Take Profit at 10.0%",
      "priority": 11,
      "purpose": "take_profit"
    }
  ],
  "position_sizing": {
    "max_position_percent": 25,
    "method": {
      "type": "allocation"
    },
    "min_position_value": 100
  },
  "trigger_timeframe": "1d",
  "version": 1
}

Trading agent generated from recommendation idea 'Roku is shopping itself for a buyout — jump in before a deal is announced'. Thesis: When a company is rumored to be for sale, its stock usually jumps because buyers have to pay a premium to take it over. Even if a deal doesn't happen immediately, the chatter alone brings in a wave of traders hoping to cash in, which pushes the price up in the short term. It's a classic speculative pop, but you want to be in early and watch closely.

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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