- MORE OPPORTUNITIES – Markets obviously don’t trend and consolidate at the same time. Therefore, each strategy provides trading opportunities at different times during the markets’ cycle through bullish periods, consolidations and bearish periods. In summary you have all types of markets covered and you have more opportunities.
- MORE PROTECTION – The EWO Volatility Strategy provides a built in hedge or risk management that the EWO Impulse Strategy doesn’t naturally provide. In summary, because the Volatility Strategy is non-directional, it typically has Calls AND Puts in every position. This means that if there is an unexpected large move in the market, either to the upside or downside, the EWO Volatility Strategy positions become profitable. This provides a layer of additional risk management for the Impulse strategy which has directional strategies which will only profit ion one direction.
- MORE PROFITABILITY – The EWO Impulse strategy is a directional strategy. Typically it uses option positions with either puts OR calls in them. Because this strategy is picking a direction, i.e. – we aren’t buying options to profit from both upside or downside moves, these positions are cheaper to enter and therefore more profitable when they are winners. The additional profit in this strategy helps lift the overall performance of the combined strategies together.
Rob Roy explains why subscribers should consider including both strategies in their approach to trading.