How the Time Strategy Compliments Other EWO Strategies

We recently introduced our new EWO Time Strategy, and this article explains how it works with our existing volatility and impulse strategies to create an all-round approach to trading.

As a trader it’s important to understand that markets and individual stocks are cyclical in their trading activity. All markets go through periods of accumulation, uptrends, distribution and down trends. Stocks in similar industry groups tend to do this together and sometimes entire markets move in unison. Consequently, if you have only a single approach to trading, there will be times when your approach is working and profitable. Conversely, there will be other times when your approach is either not performing, or possibly not even identifying available trading opportunities.

From time to time, we’ve experienced problems like this with our Impulse and Volatility strategies where market conditions have precluded us from finding sufficient trading activity for subscribers. In times such as these, the best trade is often no trade. In other words, it’s best to stick with your proven strategy even if it means that you don’t take as many trades during those periods.

However, we are very pleased to introduce our new Time Strategy which has a completely different trading profile then our other strategies and means that we’ll not only have a great number of additional trades, they’ll also be in very different market conditions which is great for the trade diversification / risk in our portfolio. Let’s take a look at them individually:

Our EWO Time Strategy uses A.I. to identify stock expected to trade sideways in a range. We then setup options strategies such as calendars, diagonals and butterflies to take advantage of time decay by selling short-term options that will expire quickly and allow us to profit.

We introduce this strategy as our Level One subscription because it is the friendliest to new options traders, allowing them to get started with minimal challenges.

The EWO Volatility Strategy identifies stocks exhibiting an Elliott Wave triangle pattern suggesting a period of indecision coupled with a drop to low levels of Implied Volatility. We then establish an option strangle that will provide maximum mathematical profit from a likely future breakout in the stock, either up or down, by capturing the increase in IV.

We add this strategy in Level Two because it is a simple repeatable strategy that doesn’t require us to pick a specific market direction.

The EWO Impulse Strategy uses Elliott Wave Impulse patterns to identify trading opportunities in stocks likely to make a strong, typically bullish, directional move. We trade either straight put or calls, debit spreads or OTM butterflies to capture profit from this movement.

We include this strategy in Level Three because it adds the challenge of picking market direction typically requiring longer time frames and greater conviction.