Momentum & Covered Call Trading Strategy Video
Trading Strategy Videos
In this segment of our Algorithmic Trading Strategy videos, we walk you through the details of the Momentum & Covered Calls Swing Trading Strategy. In this video, our lead developer reviews the details of this algorithm to include an in depth look at how it performed in the back-testing during a few key market states: Up Moving, Down Moving & Sideways Moving Markets. Why add the covered calls you might ask? Because it helps compensate for the performance during down moving and sideways moving markets. This strategy can be traded alone – or as part of a portfolio of trading strategies as seen in the S&P Crusher Portfolio.
Trading futures involves substantial risk of loss and is not appropriate for all investors. Past performance is not necessarily indicative of futures results.
Results discussed in this video are based on back-tested models that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. This strategy utilizes Iron Condors – which introduces additional back-testing difficulties. Estimates are used in the back-tested model for premium collected which are based on the value of the VIX at the time the trade was placed and the number of days till expiration. In addition, ES Weekly Options were not available to trade throughout the entire back-tested period.