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The Volatility Strategy2022-07-05T21:33:39+00:00

TRADE ALERT SERVICE

The Volatility
Strategy

This strategy identifies opportunities that exhibit a combination of both unusually low options volatility and Elliott Wave corrective patterns. A Strangle option strategy is used to capture profit from increasing option volatility during the ensuing break out from the consolidation pattern. Where a sufficiently low level of volatility in options pricing exists, we can have a reasonable expectation of an increase in volatility to historical levels.

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Volatility features

Overview

Strategy commenced

– October 2017

Primary strategies used

– Strangles

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

Profit with Options Trading

Profit regardless of market direction

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, the Volatility Strategy, allows you to cover the market in both directions and gives you more opportunities to profit.

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Options Trading - Volatility Strategy

Take advantage of implied volatility

The Volatility Strategy provides a built in hedge or risk management that the 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.

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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 “High-Value” subscription which includes trade alerts for opportunities that exceed risk management criteria for our recommended account minimums.

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How much capital do I need to start trading.

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 an initial position value of $500 per trade for our premium services.

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See the volatility strategy in action

ELLIOTT WAVE OPTIONS

Volatility Strategy Performance

Summary Statistics

Figures Assume $5,000 Starting Capital

0
Total Trades
0%
Winning Trades %
0%
Cumulative Return on Account
0%
Monthly CAGR %

 

Note this track record was updated in Nov-2021. Details available here

Performance Summary
PeriodTotal TradesWinning TradesWin Rate %Cumulative ReturnMonthly CAGR %Avg. Trade SizeAvg. Days per TradeAvg. P/L per TradeWin:Loss RatioMax Draw-
down
Max.
Consec. Winners
Max.
Consec. losers
All1529663.2%246.2%2.4%$42526.819.9%1:1-18.0%104
2018483470.8%112.0%6.5%$41932.027.8%2:1-18.0%104
2019412356.1%58.6%3.7%$42724.417.1%1:1-8.6%42
2020292172.4%55.3%3.7%$41622.722.9%2:1-8.2%62
2021231356.5%21.2%2.0%$42224.49.7%1:1-9.5%74
20229555.6%9.4%1.8%$47829.810.9%1:1-5.921
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.

YearJanFebMarAprMayJunJulAugSepOctNovDec
2018-5.1%31.4%11.9%0.6%0.0%-16.6%7.0%13.0%0.0%25.4%23.2%21.2%
20196.8%6.9%3.0%2.2%31.1%0.6%2.1%7.5%3.5%-2.9%1.4%-6.1%
20205.4%9.0%7.7%-4.0%11.8%6.0%0.6%2.3%-2.7%6.9%3.5%8.8%
202120.2%0.0%-2.1%2.5%9.6%-9.1%0.0%-3.9%3.8%-1.6%2.8%0.0%
20226.7%-1.8%15.3%-5.0%0.0%0.0%
Monthly Trade Returns

Returns based on initial entry debit or net initial margin requirement if a credit position.

YearJanFebMarAprMayJunJulAugSepOctNovDec
2018-21.4%56.4%48.4%1.6%0.00%-45.0%35.4%69.8%15.2%29.50%53.6%49.8%
201934.5%71.1%9.8%8.9%80.5%2.5%-7.5%50.6%23.8%-38.5%9.2%-19.2%
202024.4%108.4%52.9%-83.0%46.4%40.7%-4.1%0.6%-13.8%16.0%48.6%43.6%
202121.5%0.0%21.0%29.6%55.0%-25.1%0.0%-44.1%26.5%-28.9%5.2%0.0%
20223.8%-8.0%56.4%-30.8%0.0%0.0%
Individual Trade History

Example Historical Trade Format

Trade ID: 216

MHK

Long Strangle
EWO Volatility Strategy
WIN

1 x Contracts
21Aug20
60 Put/105 Call

Entry
May 22, 2020
4.45 Db Fill

Exit
May 28, 2020
7.20 Cr Fill

5 Days in Trade
61.8%
Return in
Capital
$275 P&L

In order to access individual trade details in the format shown here please login to the EWO platform. Access for historical trades is free.

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