Scenario Setup 1. Stock: ABC Corp 2. Current Price: $100 per share 3. Buyer Bot: - Strategy: Moving Average Crossover - Criteria: Buy when the short-term moving average (SMA 5) crosses above the long-term moving average (SMA 20). - Budget: $10,000 4. Seller Bot: - Strategy: Relative Strength Index (RSI) - Criteria: Sell when RSI is above 70 (indicating the stock is overbought). - Shares Owned: 200 shares Step-by-Step Simulation Step 1: Market Data Analysis The bots analyze the latest market data to make their decisions. - Buyer Bot Analysis: - SMA 5 (Short-Term Moving Average): $98 - SMA 20 (Long-Term Moving Average): $100 - Decision: No action (SMA 5 is below SMA 20). - Seller Bot Analysis: - RSI: 72 - Decision: Sell (RSI is above 70). Step 2: Order Placement Since the Buyer Bot decides not to take any action, it does not place an order. However, the Seller Bot decides to place a sell order. - Seller Bot: - Sell Order: 100 shares at $100 each. Step 3: Order Execution The market processes the sell order. For the sake of this simulation, we'll assume there's a willing buyer in the market (not the Buyer Bot since it didn't place a buy order). - Executed Trade: - Sold: 100 shares of ABC Corp - Price: $100 per share - Total: $10,000 Step 4: Update Positions - Seller Bot: - Remaining Shares: 100 shares - Cash: $10,000 from the sale. - Buyer Bot: - No change in position (still has a $10,000 budget). Summary - Buyer Bot: - Strategy: Moving Average Crossover (did not execute a trade as conditions were not met). - Current Budget: $10,000 - Seller Bot: - Strategy: RSI (executed a trade as conditions were met). - Current Shares: 100 shares of ABC Corp - Current Cash: $10,000