SwingTrading Pro is all about finding the market natural swings and riding on them with the direction of the Trend. Also known as, 123 pattern or ABC pattern.
"SwingTrading Pro" Thread 🧵
Scroll down 👇
Finding 123 pattern in objective way is super hard and we believe that we have the framework that would help us to identify while it happens in live market.
As you can see identifying the right Trend is a monumental task. We have the internal calculation that tracks the Daily timeframe Trend.
Scroll down 👇
MOMENTUM
Once we have the Trend; how do we know the Trend is active or dying?
This is where the Momentum comes into play. Momentum measures the trend strength.
Scroll down 👇
PULLBACK EVALUATION
Evaluating the retracement from the trend move is super hard. We have added multi-dimensional (MTF) analysis to measure the retracement and help us know its reaching the optimum level for us to enter.
Scroll down 👇
STRUCTURE BREAKOUT
Structure breakout help us to filter out the unqualified entries. Also, breakout help us place the right Stop loss, and Take profit.
Scroll down 👇
SwingTrading Pro also comes with important information in Dashboard.
POM = Probability of Move
ZONE = MTF Cycle High / Low
Scroll down 👇
SwingTrading Pro in Action
This is how we identify the 123 Pattern with objective framework.
End of thread. 🧵
@threadreaderapp
unroll
• • •
Missing some Tweet in this thread? You can try to
force a refresh
BAT Option strategy has become popular now. let's decode the strategy and its variations.
BAT option Strategy Thread 🧵
Various names of BAT Option Strategy
1. BAT Strategy 2. CAT Strategy 3. BATMAN strategy 4. Double Ratio Spread 5. ‘V’ Spread 6. ‘M’ Spread
Scroll down 👇
(i) BAT Strategy Construction.
The Typical construction of BAT strategy is…
Call Ratio Spread + Put Ratio Spread with same expiry
Tips: One should cover the Pay-off diagram with 1SD range to have higher probabilities of success.
Scroll down 👇
(ii) Conservative BAT strategy
Call Ratio Spread + Put Ratio Spread + Protection on both the tail end.
Advantages of having Protected end BAT Strategy is... 1. Reduced Margin. 2. Black swan proof.
In this thread…👇👇👇
How 1 Standard deviation (1SD) will help Non-directional option trade as an edge?
We all know 1SD on the normal distribution it covers 68% probability. This is well known fact and it will remain same. Of course, once the distribution is changed based on movement, time duration or volatility it will increase or decrease the 1SD level.
So, 1SD is not constant and it will expand or shrink based on the above scenario. As a non-directional trader, one must have constant eye on 1SD level to match up the strikes with the current market condition.
This is the story of this week (WIT) trade.
09/04/2021 - Friday
As per rule book I started the weekly #IM3 model on Last Friday. This model is versatile enough and works on most of the IV environments. It comes with 50% hedge of all the Sells involved.
09/04/2021 - Friday
09/04(Friday) movement was within the 1SD boundaries and didn’t require any adjustments. Capital used ~12L
12/04/2021 - Monday
Big Gap down and its almost -900 points or so. That is about to threaten the Put side wing thus initiated the adjustment. And made the profile centre and covered 1SD. Capital used ~20L
I had few questions about the Calendar spread and its robustness.
By default, The design of Calendar or Diagonal are not robust enough to trade all months. Because of few factors…
1/n
Cons. 1. Too much Vega positive. 2. Option Modelling software will not plot Calendar profile properly. 3. Gamma effect.
2/n
Let me address, how I fixed those Cons to make it work as All-rounder profile.
1.Too much Vega positive.
This is really good on falling market but not certainly for Raising market. The Positive Vega calendar spread will blead on bullish market.
3/n