🦎QQQ - Zero Trend - High Volume - Komodo Flow
100% gains found going short and going long in a session where nothing really happened but money was to be made if you followed Komodo Flow.
Last updated
100% gains found going short and going long in a session where nothing really happened but money was to be made if you followed Komodo Flow.
Last updated
Summary:
On October 11, 2023 the QQQ opens slightly higher with 12 alerts firing off during the open period 7 BULL to 5 BEAR. Since the flow is mixed, RIGD considers the open period to be ZERO TREND meaning a trader should not have a bias on direction however given the HIGH VOLUME, it's a very tradeable day and following KOMODO FLOW was extremely profitable.
A future update to RIGD will only show KOMODO alerts on days like this, however users will always be able to toggle this feature off and show everything.
Trade strategy:
Strictly follow KOMODO FLOW alerts
Take profit and cut losses fast, we do not expect THE MOVE (2-3 strikes) and will settle for 1-strike or less.
No directional bias, on zero trend high volume days it will often look one way or another before a massive reversal.
SPY volume is abysmally low, so we aren't even looking at alerts for that side. We want high volume and a high number of alerts.
We got that on the QQQ open (please refer to OPEN strategy here).
The back to back BEARS that fire off around 9:40 are worth taking given that price has moved up and we're right at the 371 strike.
We get an immediate move down and at 2-strikes we are exiting some of the position, while thinking (mostly hoping) we get a BEAR trend and the price action will go that way all day.
You'll notice at 10:05 on that more bear flow comes in, but the price action isn't going down. This is a sign to exit the majority of the position only leaving on waht you're comfortable with holding down to $0.
At 10:31 RIGD calculates the open period for SPY and QQQ runs an algo which attempts to determine whether or not a trend exists.
ZERO TREND is detected on SPY or QQQ, but QQQ is high volume.
Generally when high volume is detected alerts have a higher success rate.
Enter KOMODO FLOW...
Okay KOMODO FLOW is just a fancy name for an action tree we prefer to follow depending on the OPEN TREND.
Komodo flow for zero trend high volume is:
CLUSTER BOMBS
SWING ALERTS
500+ BOMBS
We are only looking for these alerts and are not concerned on direction as we have no bias.
If we enter trades based on these alerts, we are looking to exit quickly and make take profit earlier than usual compared to trend days.
Each of these were detected on 10/11/2023 on the QQQ and each one was profitable.
11:26 - 902 BEAR CLUSTER - this is an epic trade. QQQ nukes a full strike and when it looks like it's going back up, the lizards hit it with BEAR flow. These never drawdown (aka always profitable) on the way to 120.09% max gain.
11:42 - 253 BULL SWING - remember on a zero trend day we are not expecting THE MOVE (2-3 strikes) in any direction. We have the finger on the trigger ready to market smell when it even begins to sniff profitability. That means exit this as soon as it taps the 370 strike likely for 20-30%.
Finally we get a giant bull bomb at the start of the FINAL SESSION.
13:35 - 630 BULL BOMB - it fires off near the absolute low of the day and the rest of the session was a classic MEAN REVERSION (aka return to the open price). These experienced a small drawdown of 21.35% before returning 185.24%.
Summary:
Zero Trend - High Volume typically results in a very tradeable session with a higher success rate for KOMODO flow alerts.
We saw price action move down, before returning to the open price aka "mean reversion".
Every single KOMODO flow alert was profitable with the BULL SWING and BULL BOMB closing at +77.63% and +185.24% at the end of the session.
We will have KOMODO flow shipped in the UI next week.
Stay frosty!