ACVO (Open Source) Options Strategy

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ACV Open Source Parameters and Sizing

  • DTE 180+
  • Put credit and Call credit spreads used
  • Strikes nearest $600 credit and $200 debit
  • Technical display for daily chart
    • EMA’s – 10, 20 and 50
  • Positions held
    • Bullish momentum = 1 put spread
    • Bearish momentum = 1 call spread
    • Neutral = 1 call spread , 1 put spread

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Determining Direction and Opening/Closing Positions

    • When EMA’s line up bullish (10>20>50), sell 1 put spread
      •  Bullish Exits:
        • Profit Target – close and open new put spread at 75% profit target of short strike credit received.
        • Stop loss – close and open a new put spread at 200% loss of short strike credit received.
    • When EMA’s don’t line up in order, enter 1 call spread and 1 put spread.  If you already have a put or call spread on due to previous bullish/bearish stance, keep this on and add the other side.  Each spread/side is managed separately.
      •  Neutral Exits:
        • Profit Target – close and open new put spread at 75% profit target of short strike credit received.
        • Stop loss – close and open a new put spread at 200% loss of short strike credit received.
    • When EMA’s line up bearish (10<20<50), sell 1 call spread
      •  Bearish Exits:
        • Profit Target – close and open a new put spread at 75% profit target of short strike credit received.
        • Stop loss – close and open a new put spread at 200% loss of short strike credit received.

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This is an open source set of rules for members our of community. Alerts and updates are not available for this strategy at this time. We recommend that you evaluate, back test, and determine the current viability of this strategy for yourself. It serves as a great starting point to add new ideas or test similar rules on other markets. 

If you have any questions or need further clarification, please send a message in the slack channel #general or #futures.

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History *

Returns are based on an estimated $3,00 total margin required with a
recommended $12,000 account allocation to trade one contract in each market.

Overview

The ACVO trading strategy is a hybrid model for momentum and market neutral income. It is deployed in the options on Gold futures (symbol GC) and Crude Oil futures (CL).

* Please note that all trades are computer simulated. We have done our best to estimate market factors such as commissions and liquidity, however all computer simulations and even historic live trading cannot fully account for variations in commission rates, liquidity issues, and slippage. Please review other important disclosures.

Statistics

0 %
Annual Return on Allocation
0 %
Annual Ret/Margin
7 %
Max Drawdown
0
aRet/MDD
0 %
Win Rate
$ 100
Minimum Allocation
75
Trades
20
Average Hold

How The Strategy Works

  • Defined risk on every trade. There are no naked options, no short futures, or any other form of unlimited risk type of trades.
  • Momentum priority. The dominant trend and momentum of the market is always respected so that we can benefit from long lasting trends and avoid being on the wrong side of market crashes.
  • Income over home runs. We opt to see income from positive Theta rather than catching giant returns from long premium. This allows for far more consistent returns while giving up only a small amount of long term upside. 

Strategy Team

Garrett Drummond

Funded trader in the Falde Trading incubator program and designer of the ACV strategy.

Andrew Falde

Adviser and manager for prop firm, fund, and individual clients. Founder of Falde Capital Management and Falde Trading.

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