What implications does the 10-day RSI indicator have for SOXS?

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SOXS's RSI Indicator exited the oversold zone, 37 of 39 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.

How did SOXS's Momentum indicator behave recently?

The Momentum Indicator moved above the 0 level on May 28, 2025. You may want to consider a long position or call options on SOXS as a result. In 87 of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 89%.

What does a 3-day price advance indicate for SOXS?

Following a +8.50% 3-day Advance, the price is estimated to grow further. Considering data from situations where SOXS advanced for three days, in 239 of 268 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.

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Serhii Bondarenko

published in Blogs

Mar 28, 2025

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AI Trading Signal Agents: Achieving a +75 % Win Rate

Artificial intelligence (AI) is revolutionizing financial markets, particularly in algorithmic trading. AI trading bots, such as the "Double Agent" model, employ advanced strategies to navigate market trends with a high degree of accuracy. This article explores AI-driven trading strategies with a win rate exceeding 75%, focusing on the "Double Agent" approach that utilizes long positions combined with inverse ETFs for hedging.

AI Trading Bot Double Agent Strategies

1. CRS / SOXS Strategy

Overview:

BUY LONG: Carpenter Technology Corporation (CRS) is a leader in high-performance specialty metals, catering to aerospace, defense, medical, and energy industries.
BUY LONG AS A HEDGE: Direxion Daily Semiconductor Bear 3x Shares (SOXS) is an ETF that aims to deliver three times the inverse daily performance of the PHLX Semiconductor Sector Index.

This pairing allows traders to leverage CRS’s growth potential while mitigating downside risk through SOXS, which gains value when semiconductor stocks decline.

2. TSM / NVDS Strategy

Overview:

BUY LONG: Taiwan Semiconductor Manufacturing Company (TSM) is a leading semiconductor manufacturer serving industries such as AI, mobile devices, and high-performance computing.
BUY LONG AS A HEDGE: NVDS is an inverse ETF that seeks daily investment results of -150% relative to NVIDIA Corporation (NVDA), providing a hedge against downward movement in NVIDIA’s stock price.

The strategy ensures traders can benefit from TSM’s growth while offsetting potential losses in the semiconductor sector.

3. AVGO / SOXS Strategy

Overview:

BUY LONG: Broadcom Inc. (AVGO) is a global leader in semiconductor and infrastructure software solutions.
BUY LONG AS A HEDGE: Direxion Daily Semiconductor Bear 3X Shares (SOXS) is an ETF designed to track three times the inverse of the ICE Semiconductor Sector Index.

By combining AVGO’s long position with SOXS as a hedge, this strategy allows traders to manage risk while capitalizing on Broadcom’s market strength.

4. TSLA / TSDD Strategy

Overview:

BUY LONG: Tesla Inc. (TSLA), the world’s most valuable automaker, specializes in electric vehicles (EVs) and renewable energy solutions.
BUY LONG AS A HEDGE: GraniteShares 2x Short TSLA Daily ETF (TSDD) is an inverse ETF that provides -200% exposure to Tesla’s daily performance, offering a strategic hedge against market fluctuations.

By incorporating TSDD, traders can mitigate risks associated with Tesla’s volatile stock while still benefiting from its long-term growth prospects.

Suitability of the Double Agent Trading Model

The Double Agent trading algorithm is an advanced AI-driven strategy tailored for both novice and experienced traders. It operates as a swing trader, utilizing:

Multiple timeframes: H1 (hourly), M30 (30-minute), and H4 (4-hour) for trade entries.
Daily timeframe filters: To refine trade exits.
Simultaneous trade execution: Managing up to six positions at once.

This approach enables traders to navigate market trends dynamically, ensuring profitability regardless of asset direction.

Double Agent AI: A Dynamic Trading Approach

The Double Agent Trading Bot is engineered for adaptability in fluctuating markets. Whether an asset is rising or falling, the AI bot leverages two specialized agents:

Momentum Agent: Capitalizes on upward trends to maximize gains.
Inverse Hedge Agent: Offsets risk by taking counterpositions in inverse ETFs.

This dual strategy enhances profitability by managing risk exposure effectively.

Tickeron and Financial Learning Models (FLMs)

Sergey Savastiouk, Ph.D., CEO of Tickeron, underscores the role of AI and technical analysis in navigating market volatility. Financial Learning Models (FLMs) integrate AI-driven analysis with pattern recognition, offering:

Real-time insights: For informed trading decisions.
Beginner-friendly automation: Enabling new traders to engage confidently.
High-liquidity stock bots: Designed for fast-moving markets with transparent execution.

By incorporating FLMs, AI trading bots significantly improve decision-making accuracy, reinforcing their ability to sustain a 75 %+ win rate.

Conclusion

AI-powered trading agents, such as the "Double Agent" bot, offer traders a high degree of accuracy and risk management through innovative strategies. By combining long positions with inverse ETFs, traders can navigate volatile markets effectively. As AI continues to evolve, its impact on financial markets will only grow, solidifying algorithmic trading as a dominant force in modern investing.

Disclaimers and Limitations

Related Ticker: SOXS, CRS, TSM, NVDS, AVGO, TSLA, TSDD

SOXS sees its 50-day moving average cross bearishly below its 200-day moving average

The 50-day moving average for SOXS moved below the 200-day moving average on May 29, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Technical Analysis (Indicators)

Bearish Trend Analysis

Following a 3-day decline, the stock is projected to fall further. Considering past instances where SOXS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for SOXS entered a downward trend on May 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SOXS's RSI Indicator exited the oversold zone, of 39 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 71 cases where SOXS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Momentum Indicator moved above the 0 level on May 28, 2025. You may want to consider a long position or call options on SOXS as a result. In of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for SOXS just turned positive on May 22, 2025. Looking at past instances where SOXS's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SOXS advanced for three days, in of 268 cases, the price rose further within the following month. The odds of a continued upward trend are .

SOXS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Industry description

The investment seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the ICE Semiconductor Index. The fund invests at least 80% of the fund’s net assets in financial instruments, that, in combination, provide 3X daily inverse (opposite) or short exposure to the index or to ETFs that track the index, consistent with the fund’s investment objective. The index is a rules-based, modified float-adjusted market capitalization-weighted index that tracks the performance of the thirty largest U.S. listed semiconductor companies. The fund is non-diversified.