‘RICARDO’S PREMIUM ALERTS’ AT CAPITAL

DISCUSSIONS

Ricardo Sáenz de Heredia Murray 1

INTRODUCTION

It is possible to combine in one unique tool a traders experience of years in the market with the power and potential of quantative algorithmic low latency systems It is also possible to develop options based strategies on market patterns that repeat themselves time after time. Strategies that have been tried and tested through back-tesing and other types of stringent analysis Stategies here have been coupled together and developed as one to exploit the high correlation that exists amongst them blended with risk control and money management.

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At optionelements.com we have been years researcing, investigating and innovating these strategies and systems and we have now provided tools to develop and implement simple trading systems providing extremely high risk/reward ratios, with probabilities firmly on our side. Lets take a look at the three strategies in question…..

After many years of study and trading the markets, Ricardo Sáenz de Heredia identified certain correlated patterns in the market that matched a number of his own market inidicators Accumulation/Distribución ATR, Fractal Component Price Implied Volatility 10, 30 y 90 periods. Open Interest Personalised Technical Indicators

THE ORIGINS OF THE SYSTEM: HOW IT BEGAN?

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Systems experts at optionelements started developing sets of algorithms capable of replicating and following the patterns Ricardo had detected. Artificial neural networks were used to instigate a work process which Ricardo directed and supervised. The ultimate objective was to inevitably detect triggers for certain high prob simple option strategies that could be easily followed by traders of beginners and advanced levels

PROGRAMME, QUANTIFY AND TEST

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THE RESULTING STRATEGIES 1- PLATINUM RUT 2000 : Trades using weeklies and shorties from 3-5 days in duration (traded over the weekend). 2- GOLDEN EARNINGS PLAYS: One night trades on certain stocks when presenting earnings results. Price, volume, open interest y implied volty are also taken into account 3- THE VOLATILITY EDGE: Less frequent high prob positions implemented on more of a medium term basis based on more dispersed patterns and Nasdaq 100 volatility indicators

PLATINUM RUT 2000

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Based on: Fractal Component Price. Open Interest. Average True Range. We use Iron Condors on Weekly and Shorty Options. Exploiting relatively high probability lateral market scenarios in the Rut 2000 Index.

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PLATINUM RUT 2000

GOLDEN EARNINGS PLAYS

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Based on: Price and Volume Patterns. Levels of Accumulation/Distribución. Personalised Volatilty Indicators. We base the strategies on medium and high volume US stock options. And we look for both lateral and directional movements.

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GOLDEN EARNINGS PLAYS

THE VOLATILITY EDGE

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Based on: Fluctuations in Implied Volatility levels of the Nasdaq 100. Levels of Accumulation/Distribution. Personalised Volatilty Indicators. We implement short and medium term high probability Income Trading Strategies on the Nasdaq 100. The general environment for entrance triggers are those of higher implied volatility levels.

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THE VOLATILITY EDGE

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WEIGHTING ASSIGNED TO EACH STRATEGY

Strategy Rut 2000: 50% Capital. Golden Earnings Plays: 20% Capital. The Volatility Edge: 30% Capital. When we are out of this strategy the capital would be used for the Strategy RUT 2000.

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ALL 3 STRATEGIES COMBINED

THANK YOU

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