Wednesday, May 29, 2019

Delta Neutral Update....05.29.2019

Here's a look at the current QLD/QID delta neutral model.  Note that we've set the trigger threshold up to 2%...reflecting the current pop in volatility.  We've missed a few big move days due to the out of the gate surge limit stops...meaning the model simply didn't trigger on those days. preservation is our number one goal and in that respect the DN model has performed well and shown admirable performance and safety relative to a straight directional model such as our benchmark VIXEN momentum model shown below.

Monday, May 27, 2019

MoDX charts for QQQ and GLD.....05.27.2019

Here are a couple updates for the MoDX (directional momentum DMI+/ DMI-) charts using QQQ and GLD (gold ETF) for illustration.  GLD is pretty much a train wreck having gone basically nowhere as the talking heads have screamed BUY!!!! over the last year.  QQQ (NAZ100) on the other hand is oversold but as we have (painfully) learned in the past, thing that are oversold can often get even more oversold.
These are 30 day charts since my trading bias is strictly short term.

Wednesday, May 22, 2019

Delta Neutral Update....05.22.2019

With volatility on the uptick we are once again mining some nice gains in the delta neutral QQQ based model using QLD and its inverse QID.  The model produced little return in Aprils due to depressed volatility but since MAY 6th we've seen a sizable bump.  Patience is the name of the game when playing delta neutral along with attention to the rules that demand a quick position exit if intraday reversals trigger...of which we've seen several in May.
Note that our optimized limit stop % has risen to 2.6%.. a massive jump from April when it was riding at a sleepy all time low.
Both the Skew and the TrendX charts gave us a clear signal back on May 6th that things were about to change.