Quick Quiet Quail

Follow Upwards

Uses volume analysis to sense bullish price breakouts with longer holds to maximize profits

Benefits

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    Uncapped Upside

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    Low Margin Requirements

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    Simple Management

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    Defined Risk

Considerations

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    Moderate Win Rate

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    Overnight Risk

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    Risk of Option Price Decay

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    Slower Action

Further Info

Proprietary Skyward strategy capturing weekly bullish moves in the QQQ identified by analysis of trading volume anomalies. Through backtests we have found that using end of week exits generates higher Sharpe ratio and risk reward metrics. 

We use options to minimize capital investment, with the attempt to capture higher upside benefiting from option leverage. We have found our signal to be effective across numerous symbols in addition to the QQQ. This strategy has remained effective through periods of high volatility, though option price increases caused by the volatility do increase the necessary investment. As part of this strategy, we analyze the option chain to find the optimal strike, evaluating if there is a better risk/reward ratio in pivoting to a spread. This has shown good results in backtests and live trading.

This strategy is essentially a mix of SPYGlass and Fifth Street concepts. It expands upon the entry methodologies of Fifth Street, while moving to a longer term option and exit like SPYGlass.