The author shares with us the discovery that he has found a profitable options trading system:
I just exploit volatility
Colleagues, this is the Grail! (No sarcasm)
Answer the questions:
- Will volatility fade?
- Will there be more certainty?
- Will it be easier to make money in the financial markets?
Scientists say no. It will only get worse and worse. Until one day humanity goes crazy and a reboot takes place. Although this is not accurate;)
it VUCA the world we live in.
How is this reflected in our trading life?
To put it simply: these are huge amplitudes of price movements in different directions with a high degree of uncertainty where we will go tomorrow. Huge selection of complex tools. And old profitable models often stop working …
Until recently, I believed that countertrend gaps close quickly. Because such price gaps on the chart do not break through important levels along the trend, but simply express short-term crowd emotions, removing the overbought / oversold asset. However, things turned out differently in 2020.
All the most powerful growth impulses began with gaps. In March, November and February 2021
The fall in February 2020 also started with a gap after several months of growth.
This is in our market and in America. The charts are ripped apart by volatility, uncertainty, it has become complex and unclear.
Will today’s correction also end with a gap up?
followed by growth at the close of weak shorts?
But it is not exactly )))