Public trading strategy
Broadcom's weak AI forecast triggers chip stock sell-off — short AVGO and semico
Created
Thesis
When a major chipmaker like Broadcom misses forward expectations, it often signals a temporary peak in AI-related spending, which can trigger a broader sell-off across semiconductor stocks. With Broadcom dropping 14%, competitors like AMD and Intel are also getting dragged down by negative market sentiment. This creates an opportunity to bet against these stocks as Wall Street analysts lower their growth projections. The sharp initial drop usually leads to continued selling pressure over the next week as institutional investors unwind their positions.
Strategy approach
Build a short strategy for AVGO on the daily timeframe. Enter short when the price gaps down below the lower Bollinger Band (20, 2) and RSI(14) is below 40. Exit the position when RSI(14) crosses back above 60 or after a maximum hold period of 10 trading days. Use a 4% stop loss above the entry price to cap risk.
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: BB/RSI Signal Long (AVGO@1d) (4 conditions)
- Entry: BB/RSI Signal Long (AMD@1d) (4 conditions)
- Entry: BB/RSI Signal Long (INTC@1d) (4 conditions)
- Exit: RSI Crosses Above Exit (AVGO@1d) (1 condition)
- Exit: RSI Crosses Above Exit (AMD@1d) (1 condition)
- Exit: RSI Crosses Above Exit (INTC@1d) (1 condition)
- Exit: SL: Below Support[2] (AVGO@1d) (1 condition)
- Exit: SL: Below Support[2] (AMD@1d) (1 condition)
- Exit: SL: Below Support[2] (INTC@1d) (1 condition)
- Exit: TP: Near Resistance[1] (AVGO@1d) (1 condition)
- Exit: TP: Near Resistance[1] (AMD@1d) (1 condition)
- Exit: TP: Near Resistance[1] (INTC@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "AVGO",
"timeframe": "1d"
},
{
"symbol": "AMD",
"timeframe": "1d"
},
{
"symbol": "INTC",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "open",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"pattern": "hammer",
"type": "candlestick_pattern_detected"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_avgo",
"name": "BB/RSI Signal Long (AVGO@1d)",
"priority": 1,
"trade_symbol": "AVGO"
},
{
"conditions": [
{
"left": {
"field": "open",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"pattern": "hammer",
"type": "candlestick_pattern_detected"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_amd",
"name": "BB/RSI Signal Long (AMD@1d)",
"priority": 2,
"trade_symbol": "AMD"
},
{
"conditions": [
{
"left": {
"field": "open",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"pattern": "hammer",
"type": "candlestick_pattern_detected"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_intc",
"name": "BB/RSI Signal Long (INTC@1d)",
"priority": 3,
"trade_symbol": "INTC"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_avgo",
"name": "RSI Crosses Above Exit (AVGO@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "AVGO"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_amd",
"name": "RSI Crosses Above Exit (AMD@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "AMD"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_intc",
"name": "RSI Crosses Above Exit (INTC@1d)",
"priority": 3,
"purpose": "signal",
"target_symbol": "INTC"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_avgo",
"name": "SL: Below Support[2] (AVGO@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "AVGO"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_amd",
"name": "SL: Below Support[2] (AMD@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "AMD"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_intc",
"name": "SL: Below Support[2] (INTC@1d)",
"priority": 99,
"purpose": "take_profit",
"target_symbol": "INTC"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_avgo",
"name": "TP: Near Resistance[1] (AVGO@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "AVGO"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_amd",
"name": "TP: Near Resistance[1] (AMD@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "AMD"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_intc",
"name": "TP: Near Resistance[1] (INTC@1d)",
"priority": 102,
"purpose": "stop_loss",
"target_symbol": "INTC"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"resistance_stop_rank": 1,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
{
"name": "rsi",
"period": 14
},
{
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
{
"name": "rsi",
"period": 14
},
{
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
{
"name": "rsi",
"period": 14
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "AVGO",
"timeframe": "1d"
},
{
"symbol": "AMD",
"timeframe": "1d"
},
{
"symbol": "INTC",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "open",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"pattern": "hammer",
"type": "candlestick_pattern_detected"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_avgo",
"name": "BB/RSI Signal Long (AVGO@1d)",
"priority": 1,
"trade_symbol": "AVGO"
},
{
"conditions": [
{
"left": {
"field": "open",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"pattern": "hammer",
"type": "candlestick_pattern_detected"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_amd",
"name": "BB/RSI Signal Long (AMD@1d)",
"priority": 2,
"trade_symbol": "AMD"
},
{
"conditions": [
{
"left": {
"field": "open",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "bollinger_bands",
"period": 20,
"std_dev": 2
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "less_than",
"right": {
"type": "constant",
"value": 40
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"pattern": "hammer",
"type": "candlestick_pattern_detected"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1_intc",
"name": "BB/RSI Signal Long (INTC@1d)",
"priority": 3,
"trade_symbol": "INTC"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "AVGO",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_avgo",
"name": "RSI Crosses Above Exit (AVGO@1d)",
"priority": 1,
"purpose": "signal",
"target_symbol": "AVGO"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "AMD",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_amd",
"name": "RSI Crosses Above Exit (AMD@1d)",
"priority": 2,
"purpose": "signal",
"target_symbol": "AMD"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"chart_ref": {
"symbol": "INTC",
"timeframe": "1d"
},
"indicator": {
"name": "rsi",
"period": 14
},
"type": "indicator"
},
"operator": "crossed_above",
"right": {
"type": "constant",
"value": 60
}
}
],
"enabled": true,
"id": "exit_1_intc",
"name": "RSI Crosses Above Exit (INTC@1d)",
"priority": 3,
"purpose": "signal",
"target_symbol": "INTC"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_avgo",
"name": "SL: Below Support[2] (AVGO@1d)",
"priority": 97,
"purpose": "take_profit",
"target_symbol": "AVGO"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_amd",
"name": "SL: Below Support[2] (AMD@1d)",
"priority": 98,
"purpose": "take_profit",
"target_symbol": "AMD"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"rank": 2,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_2_intc",
"name": "SL: Below Support[2] (INTC@1d)",
"priority": 99,
"purpose": "take_profit",
"target_symbol": "INTC"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_avgo",
"name": "TP: Near Resistance[1] (AVGO@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "AVGO"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_amd",
"name": "TP: Near Resistance[1] (AMD@1d)",
"priority": 101,
"purpose": "stop_loss",
"target_symbol": "AMD"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_3_intc",
"name": "TP: Near Resistance[1] (INTC@1d)",
"priority": 102,
"purpose": "stop_loss",
"target_symbol": "INTC"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"resistance_stop_rank": 1,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Broadcom's weak AI forecast triggers chip stock sell-off — short AVGO and semiconductor rivals'. Thesis: When a major chipmaker like Broadcom misses forward expectations, it often signals a temporary peak in AI-related spending, which can trigger a broader sell-off across semiconductor stocks. With Broadcom dropping 14%, competitors like AMD and Intel are also getting dragged down by negative market sentiment. This creates an opportunity to bet against these stocks as Wall Street analysts lower their growth projections. The sharp initial drop usually leads to continued selling pressure over the next week as institutional investors unwind their positions.
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.
Explore
How CommonQuant researches and tests strategies · Public paper-trading record and its limits · Discover public strategies