This specific strategy is being executed in our seed capital program. This is a powerful blend of momentum and neutral trading. Garrett has developed a multi-moving average analysis technique to filter out choppier markets when momentum trading can be whipsawed and neutral trading is more likely to have stronger performance.
We believe that the concepts presented in this session can be applied to a variety of similar trading methods. Enjoy this session and we hope that it inspires your trading and strategy development.
Also, please review the bullet points after the video for clarification on items that were mentioned during the session.
Key components of Garrett’s strategy:
- Blends trend, momentum, and neutral trading into one plan
- Uses three moving averages instead of price channel to get into some moves earlier
- Uses stacked moving average for trend and un-stacked for neutral
- Allows for more time spent in a neutral stance when the market is choppy
- 1 Contract Iron Condor when MAs are not “stacked”
- 2 Contract Credit Spread (PCS when short-term MA is above long-term, CCS when short-term is below long-term)
- Longer-dated options, more than 150 DTE
- Far OTM spreads, but close enough to get adequate credit for the commissions paid
The recommendation is that you write up a similar plan and test for your own purposes. This is a rare circumstance where the specific parameters are not disclosed. Feel free to ask for additional guidance on how to model a similar strategy.