4. Our Trading Strategy

The main focus of our trading strategy is to achieve financial gains by buying and selling undervalued stocks during the current quarterly earnings cycle. Preferably trading should be carried out during the last 2 weeks before the earnings announcement. Because the earnings announcement is the official statement of a company's profitability, the days leading up to the announcement are often filled with speculation among investors.

The stocks we are going to trade were discovered through their fundamental indicators and metrics and recommendations given by research analysts, and are considered to have great growth potential in the current quarter. Only stocks that meet these conditions will be eligible for trading.

We will trade based on a technical analysis tool defined by a set of trend lines called Bollinger Bands® in conjunction with significant and well-known technical indicators. Using this technique we will consider the lower band as support and the upper band as resistance.

Below are described step by step the conditions that must be met for each of the technical indicators for buying and selling stocks.

Trading Long - Bollinger Bands® - Lower Band to Upper Band

Buy Conditions (all conditions must be satisfied or the deviation is not very relevant)

• BUY PRICE: Is it close to or preferably lower than the closing price on the day of the last Earnings Announcement

• EMA: BUY PRICE > 9 EMA

• RSI: < 30 (Oversold)

• STOCHASTIC:

1. K-Line and D-Line are rising

2. K-Line and D-Line < 20 (Oversold)

3. K-Line > D-Line (Uptrend)

• MACD:

1. Line and Signal Line are rising

2. Line > Signal (Bullish)

• OBV: A rising reflects positive volume pressure that can lead to higher prices

• BOLLINGER BANDS®:

1. BUY as close to the lower Bollinger Band as possible

2. Set a conservative STOP LOSS below the lower band support level and adjust it as the price moves

Sell Conditions (must be satisfied at least one condition)

• SELL PRICE: Is higher than the closing price on the day of the last Earnings Announcement

• RSI: > 70 (Overbought)

• STOCHASTIC:

1. > 80 (Overbought)

2. K-Line < D-Line (Downtrend)

• MACD: Line < Signal (Bearish)

• OBV: A falling reflects negative volume pressure that can foreshadow lower prices

• BOLLINGER BANDS®:

1. The upper band comes to represent the PRICE TARGET

2. SELL as close to the upper Bollinger Band as possible