Midday Pivot Point: Defined within the window from 11:00 AM to 1:00 PM, this point indicates the potential for either mean reversion or trend continuation. The more one-sided the market, the later the setup tends to occur.
Define the setup,
Up Trend (UTR)
>Flip
Up Sloping 15M 50MA
Cycle Extreme + Gamma Level
Target: High of Day (HOD) and then the next Gamma Level
Position Further Out-of-the-Money (OTM)
Down Trend (DTR)
<Flip
Down Sloping 15M 50MA
Cycle Extreme + Gamma Level
Target: Low of Day (LOD) and then the next Gamma Level
Position further out-of-the-money (OTM)
Counter Trend (CT)
Overextension from the 15M 50MA
Large directional move
DSS Cycle Extreme + Major Gamma Level/Max Call/Put
Be more tactical
Position closer to the money
Only Counter Trend on the Upside
Range (RG)
Sideways 15M 50MA
Cycle Extreme + Gamma Level
Target: Mean then the other end of the range
Position closer to the money
Strike Selection
5 wide OTM debit, around 50 premium, Risk-Reward Ratio (RRR) of 1:10
Risk Management
Risk Per Trade: 3% of the account
No hard stops—only exit if confident in being wrong
If wrong, can enter ratio trade, short 2, long 1
Notes
Trades should be obvious; there's no need to trade this setup every day
Generally, the deeper the pullback, the larger the midday move
Want to see momentum, refrain from entering on ‘chop’
When to be aggressive: Put Wall, Squeezes, Trending days