Hey everyone, just wanted to pop in and let you know I’m trading VERY small. Just 1-2 lots of #Fuzzy . Mostly shorts. Fuzzies are very expensive now. It helps to hedge them since hedges are also expensive (credit). But hedging slows them down considerably in movement. I like to get out with 50-100% gains. Where I’m doing best now is scalping /NQ.
I’ve mentioned my ” #Augen Spike Code” in the past (From Jeff Augen’s book The Volatility Edge in Options Trading). It translates price action into standard deviations. It helped me find a crash indicator different from what everyone else was viewing. But I also found an important bottom indicator is when there are 3-out of-5 daily bars with 1-standard deviation up moves. .99 doesn’t count, must be over 1.0. Going back in time w/ the indicator I found anything less than 3-in-5 led to shallow false or short term rallies. So on rally days I’m watching and counting those bars.
Here’s the code if you want it: http://tos.mx/FnguWH