The Time Strategy
As the name suggests, this strategy is designed to benefit from the time value of options. Our proprietary AI algorithm identifies opportunities where stocks are expected to trade sideways in a range. We then use options spreads, including diagonals, calendars and butterflies, to set up trades that benefit from the time decay of options to profit.
The Time Strategy
As the name suggests, this strategy is designed to benefit from the time value of options. Our proprietary AI algorithm identifies opportunities where stocks are expected to trade sideways in a range. We then use options spreads, including diagonals, calendars and butterflies, to set up trades that benefit from the time decay of options to profit.
Time strategy alert features
Overview
Strategy commenced
– September 2021
Primary option strategies
– Calendars
– Diagonals
– Butterflies
Capital Required
– Suggested $10,000
– Minimum $5,000
Trade Frequency & Duration
– 10 trades per month
– Avg. trade duration 20 days
– Maximum 25 open positions
How does the strategy perform?
Since we began issuing trade alerts for the time strategy, it has a great track record. You can see full details of its performance track record below..
What is the typical duration of a trade?
The typical duration of a trade in the Time Strategy is approximately three weeks or 20 days. This is because we are selling the front month option to collect the premium. When that option expires we sell the other side of the spread that we purchased to limit our risk and exit the trade.
How are trades selected?
Our Time Strategy uses a sophisticated AI algorithm to identify stocks that have experienced a significant price drop and are likely to trade sideways.
The analysis conducted by the AI is significantly more detailed than traditional technical analysis. In fact the amount of data being considered is well in excess of what a human could manage on a day-to-day basis.
We use the candidates selected by the AI to construct options positions and issue alerts
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 are trades selected?
Our Time Strategy uses a sophisticated AI algorithm to identify stocks that have experienced a significant price drop and are likely to trade sideways.
The analysis conducted by the AI is significantly more detailed than traditional technical analysis. In fact the amount of data being considered is well in excess of what a human could manage on a day-to-day basis.
We use the candidates selected by the AI to construct options positions and issue alerts
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 time strategy in action
EWO A.I- based Time Strategy In this trade review for SHLS (Shoals Technologies), Rob highlights the primary strategy in the A.I.-based Time Strategy, the Put Butterfly. What is unique about this trade is the speed at which this butterfly generated a nice gain, as normally a butterfly needs a number of days to go [...]
A.I. predicted Put Calendar Spread In this Trade Review for CAL (CALERES), Rob discusses how utilizing a Put Calendar Spread in our A.I.-based Time Strategy can at times offer a low entry price, allowing for multiple contracts to be placed while staying within our risk management guidelines. This provides the opportunity for either faster [...]
The EWO A.I. based Time Strategy In this trade review for WOR (Worthington Inds), Rob explains the process of how our new A.I. based Time Strategy uses A.I. to integrate into general technical analysis. In this instance, a stock that had dropped following earnings and the likelihood that it would stay in a trading [...]
Time Strategy Performance
Summary Statistics
Figures Assume $5,000 Starting Capital.
Results as at: 30 September 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. losers |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| All | 124 | 100 | 81% | 411% | 6.7% | $386 | 22.3 | 43% | 4:1 | -15.8% | 13 | -3 |
| 2021 | 41 | 32 | 78% | 252% | 37.2% | $423 | 20.2 | 73% | 3:1 | -6.3% | 13 | -2 |
| 2022 | 37 | 31 | 84% | 50% | 3.5% | $380 | 25.8 | 18% | 5:1 | -15.8% | 8 | -2 |
| 2023 | 46 | 37 | 80% | 109% | 8.5% | $357 | 21.2 | 33% | 4:1 | -11.1% | 12 | -3 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 4.5% | 22.0% | 187.4% | 37.7% |
| 2022 | 1.9% | 3.0% | 3.7% | 2.9% | 0.0% | 8.8% | 3.4% | 4.8% | 9.4% | 3.5% | 5.9% | 3.0% |
| 2023 | 2.9% | 21.7% | -3.8% | 19.1% | 9.0% | 20.7% | 0.0% | 30.8% | 18.5% | 0.0% | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 71.1% | 50.9% | 86.6% | 44.6% |
| 2022 | 15.2% | 30.0% | 20.7% | 28.6% | 0.0% | 20.8% | 24.7% | 2.3% | 15.2% | 18.8% | 12.1% | 28.3% |
| 2023 | 9.7% | 29.6% | -10.2% | 80.0% | 14.8% | 31.1% | 0.0% | 130.2% | 18.5% | 0.0% | 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
