Trading option to exit and reenter on pullback
Hi Billy/Pascal,
I am looking to get advantage of some volatility during Robot stays in the same signal (long or short).
I was considering to exit when 3 day expected target is reached and then reenter on pullback, until Robot signal stays in the same direction. This will give benefit of some inter-days or intra-day volatility.
I was wondering that it is good idea or anyone is already doing same.
Thanks.
Sandy
Short-Term OB/OS indicator
Billy,
Would timing these pullbacks using the very short-term OB/OS indicator that Pascal has described in the past increase the odds of success?
Thanks,
Adam
Short-Term OB/OS indicator
Thanks, Billy. With the market range-bound since February I was hoping there might be a shorter-term timing tool that would help catch the 2-3 day swings in the IWM we've seen.
very interesting question
As noted previously, I've been trading in this mean-reversion manner since silver collapsed-- but with SPY, not IWM.
I made regular solid returns on the options during three "round trips."
However, this Monday, I had my single greatest ever, total dollar gain shine green on my black/blue ToS screen.
I knew I could sell my entire position but I held, reasoning that a breakdown to the 200 DMA was more likely than not.
Since then, I sit through a draw down that has seen the value of my puts move about 25 cents below my purchase price. In essence I'm precisely where I would be had I have sold the puts on Monday.
This is especially true insofar as I took the rally yesterday to follow the Robot for the first time and establish a short position at precisely the entry point in IWM, as directed by the Robot.
Pascal's comments on his backtests gives me reason to reconsider my doubts about my decision not to sell on Monday 23. I also hope the Robot and conversation here will allow me to operate with greater precision.
Many thanks,
Nickola Pazderic