TradeStation™ @ TAS iCahn Hedge
“The New School of price-based strategy development believes that “robustness is not enough.”
It is all about timing market dynamics.
%C is a proprietary indicator I created in the late ’90s as a setup to increase the odds of successful breakout trading. In the early part of the second decade of the new millennium, I created a historical measure of volatility that can predict the force of a move – direction neutral. Furthermore, when combined with %C (no longer free at the app store) into a four extreme matrix it provided more reliable information about pending changes of market conditions or dynamics.
All of which has to lead to the discovery, methods, and better use of this matrix as well as applying it to CBOE’s implied volatility to achieve Alpha.
The following is about one of our long volatility systems – iCahn Hedge; and why we feel it can be used as more than a robust day in day out trading systems but be used with outside timing rules, to avoid risk and enhance opportunity.
The easy way to describe the opposition to new ideas and change is how the idea of robust trading ideas like buy dips is so difficult to contradict. Because they work most of the time, but it is the aberrations that will bite you, and you miss opportunities.
It is the aberrations that are of interest here.
But if you have learned anything from studying and trading the market, is you know that declines come and go, and their velocity and rate of change are faster than the advances.
There should be no question that good traders and sophisticated capital managers take advantage of the available products, given the massive volume.
No matter if you are a system trader using a robust strategy trading for a daily average or use your own forecast methods and apply a trading plan, you can take advantage of long volatility trading while reducing risk.
There are two ways to take advantage of the spikes in volatility the market has every year, and in some years, they are monsters. Trade like any other robust system, for the average trade only becoming aggressive when VX spikes. Or use rules of engagement to turn status on for the system.
iCahn Hedge system – has a Macro filter built-in and therefore misses a few trades playing defense. Every trade in the past year made $142,984.00 or made 35% on a $400k account, funded at six times max drawdown. A reasonable hedge against the average bear market, which is 36%. To to the App Store here for iCahn ProHedge Long VX
This system among others is going onto the TradeStation Secure Server to be available via the TradingApp® Store. Our TEM set of indicators are uploaded now and the Tidal Wave two-week swing trader is available via this link.
Please be advised.
“As always when reviewing past performance of any nature, real-time executed or simulated, nothing can assure the outcome in the future will be the same or similar, even in the face of the most stringent testing methods.”
Taking every trade over the last 11 years long, only VX futures has good risk-reward numbers getting a high amount of slippage, which equaled $223,000, no including commissions. Sustaining a profit factor of 1.61 and an average win/loss ratio of 1.74. Both providing more than an adequate edge.
To assist traders and professional hedge fund managers, the Technical Event Matrix is provided to help you see the setups before the big breakouts in volatility. The worksheet below is just one example, and these two windows are included with the @VX strategy window on the same TradeStation™ page.
As part of our pursuit of excellence for our traders and capital managers, TMT’s publishing partner “Contrary Thinker” sents all of its clients with or without TradeStation, its MarkertMap-2021 with cycle timing Volaltity reports for market dynamics timing advisory.
Both provide more than an opinion about markets but insights into how the tools from TEM to all of our proprietary indicators are used and what they say.
MarketMap-2021 Annual Scenario Planner provides historical parallelism based on 160 years of data, repetitive extra market events and their effect on markets, tidal cycles peaks and lows, market cycles for predicting time frames for lows, and astrological cycles to isolate cresting cycles.
Volatility Reports fine-tunes MarektMap’s longer-term scenario planner for the implementation of hedges and long positions. The research publication uses advanced price-based systems buy and short bias signals, traditional Technical Analysis, and new volatility modeling for market dynamics timing, including sectors and newer ETFs.
Both publications share curated news media to add backstories that fit with the ongoing market-based research.
Great and Many Thanks,
Jack F. Cahn, CMT
Contrary Thinker since 1989,
Contrary Thinker 1775 E Palm Canyon Drive, Suite 110- box 176 Palm Springs, CA
92264 USA. 760-459-4681 OR
25/1 Poinsettia Court Mooloolaba, QLD Australia 4557 614-2811-9889
— Contrary Thinker does not assume the risk of its clients’ trading futures and offers no warranties expressed or implied. The opinions expressed here are my own and grounded in sources I believe to be reliable but not guaranteed.
— Pricing is subject to change without notice. My indicators and strategies can be withdrawn for private use without notice at any time.
–Trading futures and options involve the risk of loss. Please consider carefully whether futures or options are appropriate for your financial situation. Use only risk capital when trading futures or options