KTR - Entering Trades
Last updated
Last updated
KTR is the average price range the option contract draws down to before winning (returning 100%).
If an option alert does not win immediately, we can use KTR as an entry target.
Every option alert comes with a KTR range.
If the option alert has EDGE (reliable probability), then KTR will be filled in blue.
When the price of an option contract reaches KTR, a secondary alert is triggered.
This is a KTR fill shown in the chart with red circles indicating BEAR and green circles indicating BULL.
The KTR fill recalculates win rate as if there was option flow at that point in time.
Example:
KTR for the 490c is 1.19 - 1.35.
The color is blank so we know it does not have EDGE.
The 30D is 50%, so we can choose to target this using KTR.
11:04:15 - KTR fills for the 490c with price drawing down to 1.15.
The alert wins returning 178.26% in 1h 15m.
We trade most EDGE alerts within BL -1 to +1.
If the EDGE alert is late, loses or does not win immediately, we will look to enter the trade using KTR.
We like to define "late" as a 1-strike move in the alert's direction. 1-strike = late, 2-strikes = super late, 3-strikes = very stupid.
The 55% WR EDGE BULL is an awesome trade, but you have to know price has already bounced 1.5 strikes off the bottom.
If you entered using KTR, you returned 122.24% in 37m with no drawdown.
In the first twenty minutes you get 5 EDGE BEARS, extremely bearish setup.
They do not win immediately, price action goes sideways before moving up 1-strike.
KTR for the EDGE BEARS just below the 572 strike.
This is an incredible trade returning over 300% max or 263.55% buying and holding until the end of the session.
We only starting tracking KTR returns in September of 2024, due to a limited amount of data it's not clear what the best KTR strategy may be.
Backstory:
KTR stands for Komodo Target Range. Komodo was a codename for one of our system upgrades. It got kind of confusing, so we removed it. We tried switching from KTR to ETR, but ETR is stupid. KTR is it.
