We’re in a very unique market environment, seeing 4-5% intraday swings, heavy reversals, and tons of volatility. Regardless of experience or trading style this is a PERFECT time to take advantage of a unique market and get hands on learning. Don’t continue to simply keep doing what you’ve always done, try some new things.
One of my favorite things to do is papertrade alongside my actual portfolio, I almost always have on an additional 50-100 trades that I’m tinkering with. In the current environment, I have closer to 400 on. This is because this is a prime opportunity to play with tons of variations, in real time - trading the market as we see it, and see how things work. Back testing is helpful, but doesn’t capture the human element of trading which is critical.
A few things I’m currently experimenting with:
-Adjustable profit targets based on VIX levels for long calls/ puts and naked short puts / calls
-Optimal portfolio hedge. I’m looking at VXX vs VIX long calls at deltas 0.10 to 0.9 from 30 DTE to Max DTE.
-Gamma hedging based on variable color inputs
-Advance Decline, Net Highs Lows, and Net Adv Oscillator indicator trends and signals when at extremes. I have strategies including all three but the current markets add an interesting variable to them that I haven’t been able to test real time yet.
-Comparing LEAPS and shorter term Call and put diagonals in an extreme IVP market. TONS of opportunity in diagonal puts. I’m optimizing now but am excited to share more once I have it ironed out.
Overall, this is a great time to get some solid reps in a very challenging and unique market. Get creative and have some fun!