CTE 0DTE Trading Method
Last updated
Last updated
This is a simplified version that makes RIGGED AI super easy to use and understand.
CTE stands for; Check, Trade, Exit.
Check BL for bias
Trade matching alerts
Exit at 3-strikes
You will be shocked at how well it works, something like 85% of SPY sessions. CTE works because most of the time, price moves to 3-strikes (average intraday move).
Once we get to 3-strikes, strategy changes, but more on that later.
Follow the CTE playlist on youtube!
Note: CTE skips the open because it's difficult to trade and not recommended.
Following the open session, we check the BL value (distance between price and the open price).
Positive BL = Bullish
At the BL = Neutral
Negative BL = Bearish
Bullish or Bearish we want to follow price action to 3-strikes (yellow zone).
Neutral = no bias follow the breakout by trading EDGE / High WR alerts
RIGGED AI charts show this with the recommended or preferred alerts to trade.
There were multiple 1+ strike swings followed by BEAR BOMB / BEAR KTR alerts. Each one of these returned over 100%. The exit zone in red is where price bounced each time.
Checking BL gives us bias, now we want Wall Street's option flow to confirm the bias.
The most important thing:
Do not chase price action, trade calls below the strike or puts above the strike.
There will always be more option alerts and entries.
Trade BULLS BL to +2, there's a nuke from 3-strikes to 2-strikes and they are perfect tags with price never lower.
This is the first place we want to take profit.
When price first touches the yellow zone it will either:
instantly push through to +/- 4
violently swing back the other way
The first one is very good for your trade and the second is very bad.
We get a swing and then BEAR KTR with each returning over 100%. Price then touches the yellow zone that says "BEAR RISK - BULL SWING ZONE". BULLS come in and price pumps higher.
Taking profit in the yellow is always a good idea.
Generally you can follow these rules:
Normal - hold to 3-strikes or 100%+, try to keep a runner
Nightmare - exit before 3-strikes or at any profit level
Full Send - try to hold a large position until the end of the session (trend day)
Summary:
Check BL at 10:30 for bias
Trade option alerts that match the bias
Exit at 3-strikes (yellow zone)
Next let's look at some examples of the system working as designed.
1030 - BL +2.23 (very bullish)
11:03 - Pullback to BL +2.00 and KTR fills
Price grinds higher the entire session, exit to runners in the yellow zone.
The open (930 - 1030) is when we see the most volatile price action with price quickly moving up or down before completely reversing within minutes.
This happens almost every day in the market due to things like:
Pre-market change: if we open significantly higher or lower than the previous close
Overnight news & reports: markets will react to CPI reports, earnings releases, geopolitics
Positioning for the session: if Wall Street is setting us up for a massive pump, they love to nuke the price first
The open is the most difficult time to trade and not recommended for beginners!
09:50 - Price starts to nuke from the blue line
10:08 - Price has moved 2.5 strikes lower
10:35 - Almost the entire move is retraced
18 minutes to go down 2.5 strikes and then 27 minutes to retrace almost the entire thing.
This happens almost every day in the market.
Year to date the best performing 0DTE strategy for the open has been SPY & QQQ EDGE ALERTS with 50% WR and Volume over 110.
From 01/01/24 - 11/13/24 there are 68 trades and using the advanced strategy you're returning 56.07%.
P&L jumps to +66.46% if you only trade QQQ.
P&L jumps to 117.36% if you only trade QQQ BEARS (24 results alerts).
Test this for yourself in the playground.
Only trade EDGE ALERTS 50% WR VOLUME 110+
