Public trading strategy
Roku exploring a potential sale — position for the buyout premium
Created
Thesis
When a company officially announces it is exploring a sale, its stock usually jumps immediately because buyers have to pay a premium to purchase the company. Even if a deal hasn't been finalized yet, the rumor alone creates strong upward momentum. Because Roku is a well-known player in the streaming wars, there is a high likelihood that a larger tech or media giant could step in to buy them. This makes the stock attractive as investors bet that a bidding war could push the buyout price even higher.
Strategy approach
Build a rule-based strategy that enters long ROKU on the daily timeframe when the price closes above the 20-day simple moving average and ATR(14) expands by more than 50% relative to its 10-day average. Exit if the price closes below the 20-day simple moving average, or after a 21-day max hold.
Markets and timeframes
ROKUD
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: SMA/ATR Signal Long (ROKU@1d) (4 conditions)
- Exit: Position Exit Rule (ROKU@1d) (1 condition)
- Exit: TP: Near Resistance[1] (ROKU@1d) (1 condition)
- Exit: SL: Below Support[2] (ROKU@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "ROKU",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"indicator": {
"name": "atr",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 1.5
}
},
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"ratio": 618,
"type": "fibonacci_retracement"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"ratio": 618,
"type": "fibonacci_retracement"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "SMA/ATR Signal Long (ROKU@1d)",
"priority": 1,
"trade_symbol": "ROKU"
}
],
"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": 20
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule (ROKU@1d)",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_2",
"name": "TP: Near Resistance[1] (ROKU@1d)",
"priority": 97,
"purpose": "take_profit",
"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_3",
"name": "SL: Below Support[2] (ROKU@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "ROKU"
}
],
"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": "sma",
"period": 20
},
{
"name": "atr",
"period": 14
},
{
"name": "atr",
"period": 10
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "ROKU",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"indicator": {
"name": "sma",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"indicator": {
"name": "atr",
"period": 14
},
"type": "indicator"
},
"operator": "greater_than",
"right": {
"type": "constant",
"value": 1.5
}
},
{
"left": {
"field": "low",
"type": "price"
},
"operator": "less_than_or_equal",
"right": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"ratio": 618,
"type": "fibonacci_retracement"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "ROKU",
"timeframe": "1d"
},
"ratio": 618,
"type": "fibonacci_retracement"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "SMA/ATR Signal Long (ROKU@1d)",
"priority": 1,
"trade_symbol": "ROKU"
}
],
"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": 20
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule (ROKU@1d)",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_2",
"name": "TP: Near Resistance[1] (ROKU@1d)",
"priority": 97,
"purpose": "take_profit",
"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_3",
"name": "SL: Below Support[2] (ROKU@1d)",
"priority": 100,
"purpose": "stop_loss",
"target_symbol": "ROKU"
}
],
"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 'Roku exploring a potential sale — position for the buyout premium'. Thesis: When a company officially announces it is exploring a sale, its stock usually jumps immediately because buyers have to pay a premium to purchase the company. Even if a deal hasn't been finalized yet, the rumor alone creates strong upward momentum. Because Roku is a well-known player in the streaming wars, there is a high likelihood that a larger tech or media giant could step in to buy them. This makes the stock attractive as investors bet that a bidding war could push the buyout price even higher.
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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