The Impulse Strategy
This strategy uses Elliott Analysis to identify stocks likely to move higher or lower to specific price targets. Option positions are used to capture leveraged profit from these moves while managing risk. Primary options strategies used include Butterflies, Directional Spreads or straight Calls/Puts. Where Elliott Wave analysis shows an expected impulse then our analysis uses Fibonacci levels to determine likely price targets. We then assess which option strategy is most appropriate.
The Impulse Strategy
This strategy uses Elliott Analysis to identify stocks likely to move higher or lower to specific price targets. Option positions are used to capture leveraged profit from these moves while managing risk. Primary options strategies used include Butterflies, Directional Spreads or straight Calls/Puts. Where Elliott Wave analysis shows an expected impulse then our analysis uses Fibonacci levels to determine likely price targets. We then assess which option strategy is most appropriate.
Impulse alert features
Overview
Strategy commenced
– December 2017
Primary option strategies
– Butterflies
– Vertical Spreads
– Long Puts / Calls
Capital Required
– Suggested $10,000
– Minimum $5,000
Trade Frequency & Duration
– 3 to 4 trades per month
– Avg. trade duration 50 days
– Maximum 10 open positions
How often are trade alerts published?
The Impulse Strategy typically delivers 3 or 4 new trades per month, with a maximum of 10 open positions at any one time.
What is the typical duration of a trade?
Trades can be over as quickly as a few days or they may need to be adjusted and therefore last for several months. Statistically, the average is about 50 days being a mix of these two. A typical trade would therefore be in the window of 1 to 2 months.
How much capital
do I need to start?
We suggest starting with USD$10,000, however this strategy can be traded with a minimum USD$5,000.
How will I
manage risk?
Risk management is our primary consideration when it comes to our trade alerts service and educating you on our trading strategies.
In general, our risk management guidelines recommend that you risk no more than 5% of available trading capital in any position. We therefore never exceed a position value of $500 per trade for our premium services.
How much capital
do I need to start?
We suggest starting with USD$10,000, however this strategy can be traded with a minimum USD$5,000.
If you have a larger account size, you may be interested in a “HighValue” subscription. These include trade alerts for opportunities that exceed risk management criteria for our entry level Premium subscriptions.
How will I
manage risk?
Risk management is our primary consideration when it comes to our trade alerts service and educating you on our trading strategies.
In general, our risk management guidelines recommend that you risk no more than 5% of available trading capital in any position. We therefore never exceed a position value of $500 per trade for our premium services.
See the impulse strategy in action
The EWO Impulse Strategy In this Trade Review for KHC (Kraft Heinz), Rob discusses how our confirming indicators are used to confirm the likelihood of a 5th wave in an Elliott Wave 5 Wave Impulse pattern extending to its projected target price. Rob analyzes the chart of KHC using one his most popular indicators, [...]
Trading the End of Wave 5 In this multi-faceted trade review for CI (Cigna), Rob explains his rationale for entering this position at the completion of an Elliott Wave 5 Wave pattern. Rob explains Gap Filling in combination with the featured supporting indicator in the EWO directional trading system. In addition, Rob talks about [...]
Elliott Wave - Impulse and Correction waves In this Trade Review for MOS (Mosaic), Rob illustrates his absolute favourite Elliott Wave directional pattern, a Zig-Zag located within a Wave 3 Impulse. In addition, Rob discusses the perils of having a generic risk/loss system in a world where Elliott Wave constantly reminds us that stocks [...]
Impulse strategy performance
Summary Statistics
Figures Assume $5,000 Starting Capital.
Results as at: 31 October 2023. How we report performance >
Performance Summary
| Period | Total Trades | Winning Trades | Win Rate % | Cumulative Return | Monthly CAGR % | Avg. Trade Size | Avg. Days per Trade | Avg. P/L per Trade | Win:Loss Ratio | Max Draw- down | Max. Consec. Winners | Max. Consec. lossers |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| All | 195 | 161 | 83% | 714% | 3.0% | $412 | 48.4 | 45% | 4:1 | -43.4% | 19 | -3 |
| 2018 | 29 | 25 | 86% | 270% | 11.5% | $460 | 23.5 | 101% | 6:1 | -7.5% | 16 | -2 |
| 2019 | 33 | 24 | 73% | 127% | 7.1% | $378 | 42.8 | 51% | 2:1 | -23.4% | 8 | -3 |
| 2020 | 47 | 39 | 83% | 109% | 6.3% | $402 | 68.2 | 29% | 4:1 | -23.1% | 19 | -2 |
| 2021 | 43 | 37 | 86% | 125% | 7.0% | $408 | 55.1 | 36% | 6:1 | -43.4% | 18 | -2 |
| 2022 | 26 | 21 | 81% | 42% | 3.0% | $414 | 45.7 | 19% | 4:1 | -12.1% | 13 | -2 |
| 2023 | 17 | 15 | 88% | 42% | 3.6% | $426 | 33.8 | 29% | 7:1 | -7.4% | 12 | -1 |
Monthly Portfolio Returns
Non-compounded returns based on starting capital, reset each year. Results attributed to the month and year the trade was marked as closed.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 24.1% | 56.1% | 3.3% | 15.2% | 21.0% | 6.0% | 23.8% | 26.3% | 9.2% | 51.7% | 1.3% | 32.1% |
| 2019 | 0.0% | 50.0% | 5.6% | -14.5% | 8.8% | 3.0% | 6.4% | 9.0% | 27.0% | 5.1% | 3.3% | 23.4% |
| 2020 | 39.3% | -10.2% | -7.4% | 5.8% | -20.5% | 4.5% | 9.7% | 38.5% | 0.5% | 3.1% | 18.9% | 26.4% |
| 2021 | 57.5% | 22.6% | 5.4% | 0.0% | -1.3% | 20.4% | 40.2% | 13.0% | 17.7% | 7.4% | 0.3% | 2.0% |
| 2022 | -7.0% | 8.6% | 5.5% | 14.9% | 5.2% | 10.4% | 3.4% | -12.1% | 10.6% | -5.0% | 0.0% | 7.1% |
| 2023 | 12.0% | 0.0% | 10.5% | 2.9% | -7.4% | 5.0% | 11.0% | 0.0% | 0.8% | 7.2% | 0.0% | 0.0% |
Monthly Trade Returns
Returns based on initial entry debit or net initial margin requirement if a credit position.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 138.2% | 655.6% | 34.0% | 64.5% | 115.9% | 72.8% | 142.9% | 101.03% | 209.1% | 105.0% | 3.4% | 64.1% |
| 2019 | 0.0% | 500.0% | 22.9% | -34.1% | 45.3% | 50.0% | 22.3% | 58.4% | 96.8% | 16.5% | 6.3% | 57.7% |
| 2020 | 89.7% | -21.8% | -34.5% | 40.1% | -123.3% | 75.7% | 17.2% | 66.4% | 5.5% | 24.6% | 37.9% | 46.7% |
| 2021 | 172.7% | 46.7% | 52.9% | 0.0% | -108.9% | 47.1% | 98.8% | 52.4% | 40.5% | 18.8% | 5.8% | 27.8% |
| 2022 | -19.3% | 44.1% | 20.2% | 46.2% | 56.5% | 55.0% | 40.5% | -158.7% | 40.8% | -24.6% | 0.0% | 43.2% |
| 2023 | 62.6% | 0.0% | 23.8% | 34.9% | -91.9% | 51.0% | 39.9% | 0.0% | 5.0% | 63.2% | 0.0% | 0.0% |
Individual Trade History
Example Historical Trade Format
Trade ID: 204
OLLI
Long Call
EWO Impulse
Strategy
WIN
1 x Contracts
17 Jul20
1Call
Entry
Apr 23, 2020
3.20 Db Fill
Exit
Apr 27, 2020
4.80 Cr Fill
3 Days in Trade
50% Return in
Capital
$160 P&L
