Learning: Price Headley Using Option Charts

1. 80/20 rule.  80% profit from 20% of trades

2. Every strategy has hot and cold streak.  Use MA(Equity curve from last 10 trades) as guide.  If below it, don’t trade, but still track/paper trade it until equity curve crosses above MA(last 10 equity) .

3. Option chart is slower than underlying.  But rather missing out than being trapped in due to entry too early. Use EMA(10D)

4. Check the inverse chart. Maybe have less noisy trend (clearer signal).

5. Intraday chart, don’t go less than 30 min, because noise goes up exponentially.

6. $VIX chart, everyone follows.  See it from far away place. such as weekly chart.  Close lower than previous L after up trend.  $VIX trending lower, SPY trending higher.