🔊Volume = Tradeability

Volume is the spice of 0DTE life.

RIGGED AI uses the number of option sweeps (large trades) received by the algorithm to calculate volume.

The number of sweeps detected is updated every minute and compared against the 14-day average.

Volume > 100% = HIGH

Volume < 100% = LOW

Most days a low volume.

High volume days are rare and always epic.

Knowing the difference and getting experience in both are how anyone can become successful using the RIGGED AI 0DTE system.

Trading low volume:

Low volume we expect mean reversion.

Mean reversion is when it goes up it comes back down and after it goes down it comes back up.

Trading high volume:

High volume days we expect significant price action 4+ strikes in either direction.

These are the best days to trade.

It's possible SPY or QQQ will trend in one direction the entire session and close at a low or high.

We have more advanced strategy later in this post.

___	LOW VOLUME	HIGH VOLUME
Volume	Under 90%	Over 100%
Frequency	Average day	Rare
Tradeability	Medium - Difficult	Easy mode
Price Action	2-Strikes Up or Down	4-Strikes+ Up or Down
Top Alerts	Bulls -PS and Bears +PS	Bulls +PS or Bears -PS
Strategy	Mean Reversion	Follow Trend
Trade Style	Hit & Quit	100% Gains May Be Weak

___

LOW VOLUME

HIGH VOLUME

Volume

Under 90%

Over 100%

Frequency

Average day

Rare

Tradeability

Medium - Difficult

Easy mode

Price Action

2-Strikes Up or Down

4-Strikes+ Up or Down

Top Alerts

Bulls -PS and Bears +PS

Bulls +PS or Bears -PS

Strategy

Mean Reversion

Follow Trend

Trade Style

Hit & Quit

100% Gains May Be Weak

Keep it simple:

✅ Risk more and return more on high volume

✅ Risk less and return less on low volume

By following those two rules, your chances of being a successful 0DTE trader increase by magnitudes.

Tracking volume:

There are two primary ways to look at volume.

The market status module bars show a graph for volume and values for SPY and QQQ.

Additionally volume is now shown with each alert.

RIGGED AI is currently backtesting to find correlations between volume and win rate.

A new update will ship notifying you when volume is > 100% at 10:31.

LOW VOLUME - 0DTE MEAN REVERSION

Most days are low volume.

This is how you want to trade them to be successful.

Burn this into the brain.

LOW VOLUME = 2-STRIKES above or below the open price (blue line)

We can go beyond 2-strikes above or below, but it is rare.

Sometimes we stay within 1-strike of the open price.

Low Volume Examples:

Let's look at 11/6/23 on SPY with volume at 81.85%.

There are only three red lines (strike prices) in the entire chart.

We go 1 up, 2 down and then right back to the open price at the end of the day.

It can get worse.

11/17/23 on SPY

This is probably the lowest volume we've ever recorded at 70.89%.

We open at 450.13 basically the 450 strike.

You can see throughout the entire session we only move up to 451. It does not get more difficult than this.

HOWEVER...

Because it's a low volume day we do not expect more than 2-STRIKES in any direction.

Because we are patient and try not to be stupid, we don't overtrade hoping for insane gains.

TOP TRADE = MEAN REVERSION

Low volume 0DTE is all about mean reversion.

Mean reversion is fading the momentum in the market.

It's our view that without high volume (option sweeps) that there is no real momentum.

Every low volume day the lizards make it look like the market is ready to rip only to nuke it and vice versa.

The 0DTE-ification of the markets means we go up and come back down, we go down and come back up.

Retail non RIGD users get annihilated.

Their pain is our gain.

Mean Reversion Strategy:

When price goes up we want BEARS and when price goes down we want BULLS.

Top alerts:

✅ BEARS = PS +2 to +4 (above the blue)

✅ BULLS = PS -2 to -4 (below the blue)

🟡 Alerts PS -1 to 1: there's more risk here but still a good trade.

Exit strategy:

Low volume means hit it and quit it.

We always HOPE for 100%+ gains, but FEAR mean reversion even more.

Whenever we're in a trade in low volume, we have the finger on the market sell trigger button whenever price approaches a strike price.

If we get 2-STRIKES above or below, we exit completely and wait for reversion.

SPY 11/16/23 MEAN REVERSION $$$$

Volume is at 80.86%.

There are two excellent trades here the BEAR 1 up from the open price and the BULL down from the high and the open.

It's easy to see them on the chart.

The BEAR is PS +1.38 and BULL -3.2.

Both are winning trades with no drawdown.

If you win trades like this, it's important to ask yourself if it's really worth it to keep trading?

Low volume is difficult.

However if we look at the rest of the day and follow the system we either lose small or skip trading them entirely.

The BULLS are above the blue and the BEARS are below.

The yellow BEAR is just above and is a good trade to take. We know low volume can mean 2-strikes down from the blue.

However it doesn't happen.

WE LOSE SMALL.

That's okay because we always lose small and sometimes win big.

Next time we may see a nuke happen when all of those BEARS start firing off but we only enter the trade when the BEAR is above the blue line.

The End of Day Hulk RAMP!

This is our favorite trade to catch.

Stocks go up more often than they go down.

This means we typically see a reversal to the upside that can happen anywhere from 1200 - 1400.

If we are down 2-strikes from the blue line around the time, we are pavlov dog salivating waiting for a bull bomb.

SPY 10/24/23 is a prime example.

We go up at the open then nuke around 12:15.

The bull bomb comes in at 13:20 and it's a perfect trade.

No drawdown and it goes over 101.07% if you bought and held it until the end of the session.

There's something else to look at here.

You could have PRINTED MONEY on the BEAR BOMB that fired off at the start of the middle session.

Why?

BEARS above the BLUE

BULLS below the BLUE

You will not win every trade.

You will always lose small.

And sometimes like this... win big!

Exception to the Low Volume Rules

The only time we will have a big move (4-5 strikes) on a low volume day is when there's an event that occurs during market hours.

Events can be known or unknown.

However because RIGD is an intraday trading system, most known events like CPI reports do not apply because they happen before the market opens.

There are some exceptions.

Known Events:

If something big is scheduled to happen during the trading day, we'll alert you with a warning module.

The best example of a known event is when Jerome Powell speaks.

These are crazy and you can read the case study here from 10/16.

11/09/23 we had JPow up again. Volume spikes and price nukes 4-strikes.

Unknown Events:

We haven't had one since RIGD launched.

Examples could be:

President Biden dying
Ukraine / Russia war ending
Covid 2.0 unleashed on the world
Etc

A major unknown event Black Swan event would lead to an insane move up or down.

We can't really prepare for this because it hasn't happened, but it doesn't mean we shouldn't think about it or ignore the risk they exist.

Personally we can't wait to trade it if it happens.

HIGH VOLUME - 0DTE TREND TRADING

If volume is > 100% then RIGD considers it to be high.

High volume we want to trade with the trend aka follow whatever is happening with the price.

We are not looking for the mean reversion trade.

Remember nothing ever goes straight down or straight up.

If price is going up, we want to buy BULLS on the pullback.

If price is going down, we want to trade BEARS on the up moves.

Be patient.

Don't be stupid.

There are always 1 or 2 golden opportunities to enter a move.

There are unlimited fakeouts that will blowup your account.

Don't step in front of the train.

When volume is over 100% and price is hulking up or nuking down, do not try and catch a reversal at 2-3 or even 4-strikes.

That is stepping in front of a train and that normally equals death.

When volume is high, we do not know when the move will stop.

Sometimes it does not stop and we just go up the entire session.

SPY 11/10/23 - BULL MOVE ALL DAY

These are the days we pray for.

After 10:30 it's straight up for a full 4-STRIKES.

If you bought any of the BEAR alerts on the way up, you got crushed.

That's what can happen on high volume!

There is no mean reversion and SPY closes near the high for the day.

SPY 10/27/23 - BEAR MOVE BULL KILLER

Volume over 100% and the BULLS are 3-STRIKES down. Every single one of these trades goes to zero.

On a low volume day, this is a trade we like. It's the end of the day typically when we can bounce back up.

On high volume, we don't know how low or how high it will go.

Don't step in front of the train!

SPY 10/20/23 - 129.20% VOLUME ANOTHER BULL KILLER

This was a rare session where we move 4-strikes down from the open in less than two hours. It's unusual for this to happen, so we see price start to come back up.

A TON of BULL flow comes in right around the magic mean reversion hour (1200 - 1400).

However they all get killed!

The epic trade is the BEAR BOMB at 14:08.

This trade causes max pain to all the previous bulls.

Why do we looove it?

Because on HIGH VOLUME we do not expect mean reversion.

We are not looking for the mean reversion trade.

We are looking to follow "the move" aka the trend in whatever direction it's going.

10/20/23 SPY closes at a low.

10/18/23 on SPY another great example.

The moment that mean reversion fails, is your signal to take any bombs that follow the day's price action.

We drop 4-strikes from the open with most of it happening in the last 2 hours of the session.