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
This month Elliott Wave Options is very pleased to welcome Ken Farber to present our new Options Accelerator LIVE sessions! The concept for our Options Accelerator weekly events is to assist less-experienced option traders to grow their confidence, and Ken’s background in both options trading and coaching ideally positions him to be a great [...]
EWO's newly launched A.I. based Time Strategy! Rob uses Trade No. 519 QDEL (Quidel) to explain EWO's newly launched A.I. based Time Strategy! The strategy profits from an IV skew in the options as well as time decay in stocks expected to stay in a trading range based on an A.I. derived rating. This [...]
We’ve just announced the release of our first trade alerts strategy that selects trades using A.I. Needless to say, we are very pleased and excited to be heading down this road. In fact, the results are so far in advance of what we’d expected when we started this project, that it has opened our [...]
Time 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. losers |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| All | 128 | 101 | 79% | 407% | 6.4% | $381 | 23.2 | 42% | 3:1 | -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 | 50 | 38 | 76% | 105% | 7.4% | $348 | 23.8 | 30% | 3:1 | -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% | 8.3% | -3.7% | 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% | -8.2% | 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
