Fire Sale

About this strategy

Screens big-name stocks for sharp drops and uses AI to buy only the ones judged an overdone overreaction rather than justified bad news.

1. Agent triggers

   Runs every weekday at 10:00 AM to check for significant drops in a fixed list of blue-chip stocks. It looks for companies on a downward trend based on settled prior-session prices.

2. Computes its signals

   It assesses the latest headlines for the dropped stocks, determining if the decline is justified by real news or overdone due to panic. Only overdone drops will lead to a buy.

3. Sets the target portfolio

   The target portfolio can include up to four names, each sized at eight percent of the total. As drops recover, names fall off the list, refreshing the target mix.

4. Executes orders

   Your account trades toward the target mix, selling existing holdings before buying new ones, while staying within your specified risk parameters: stop-loss and daily loss limits.

Ask this agent

Backtests