INDEX OPTIONS TIMER
Written by BigTrends Administration
AUTOMATED TRADING STRATEGY FOR THE S&P 500 INDEX THAT CAPTURES QUICK MOVES IN THE “SPYDERS”.
The new Index Options Timer (IOT) automated trading system is designed for market timing the S&P 500 Index through the SPY (the "SPYders"). The trading system is back tested on 60-minute hourly bars going back to 1999, over 15,000 points of data. Real time trade alerts and entries/exits for SPY Options are provided. We will generally recommend front-month In-the-Money SPY options with a fairly high Delta.
Back-testing (and live trading) results show winning trades are expected to be 3X` as big as losing trades. The IOT system exits non-performing trades very quickly (usually within 1 trading day), while letting winners run for up to 5 trading days. Live internal trading results since December 2008 have been very impressive.
The IOT “Buy” and “Sell” signals can be utilized by self-directed traders for trading securities such as Futures (S&P Minis, etc), other more aggressive Index Options, as well as Index Ultra-ETFs and options on ETFs.



