🥊TKO System
Tradeability, Komodo, On Fire
TKO is an acronym for; Tradeability, Komodo, On Fire.
Each of them are covered in detail in the documentation found on this page. It’s a lot to learn and takes time to master. The more effort you put into learning, the better your trading results may be. Ultimately it’s up to you.
TRADEABILITY - What Could Happen
KOMODO - What Has Happened
ON FIRE - What’s Happening (Winning)
📊 TRADEABILITY - What Could Happen
Tradeability is based off of Wall Street’s option flow and tells us what could happen or what to expect regarding price action during the session.
If Wall Street is actively participating in the market then trading will be easy, if they’re on the sidelines and there’s no alerts or volume it will be difficult to impossible.
There are five different modes each with their own strategy given expected
Normal (either difficult or super easy)
Think of them like video game difficulty ( naming came from a bit of inspiration stolen from DOOM).
Nightmare mode means price action will be weak and it’s going to be nearly impossible to return 100% on trades whereas Full Send sessions are typically the best days to trade.
Tradeability is updated throughout the session and includes strategy, suggested trade size, time and profit targets.
Members can receive notification updates via email alerts and in the discord channel.
Traders should pay close attention the strategy box and follow alerts that match the strategy!
If an alert matches the strategy: then we move from T (tradeability) to K (komodo).
Generally our preferred rules are:
❌ Nightmare, Hard or Normal mode, wait until after 1300 (1pm EST) to look for trades for the end of day rippy or nuke into the close.
✅ Easy Mode or Full Send - lock in and look to follow the price action to 3-strikes+ and get back into trades that follow the price action (trend day).
Remember tradeability gives us an expectation for price action, but remember markets are going to do whatever Wall Street wants to happen.
Tradeability Nightmare Example:
Each mode has its own strategy guide on how we expect the session to play out.
SPY 05/17/24 is a textbook example of tradeability working perfectly.
9:59 AM - Nightmare Mode
Tradeability tell us:
Not to trade before 1300
Only trade BULLS below the blue line with -PS
Look for mean reversion to the blue line
3-strikes doubtful
13:00 Begin looking for trades
13:00 arrives and the price action is a total nightmare just ping pong at the blue line.
We're only interested in BULLS below the blue line or BEARS above.
At 14:15 the first BULL below the blue line comes in. Price has moved down rapidly, we don't want or need to blindly jump full yolo into the trade.
KOMODO shows us a low WR (win rate), but relatively high max gain and for the second bull bomb -11.17% DHD.
Because the difference between diamond handing (holding until end of the session) is close to max gain, we know that if the trade wins it means we're going to hulk pump into the close. Since it's nightmare mode, we can take the trade with small size and this is on where you win BIG!
🦎 KOMODO - What Has Happened
KOMODO is the second module on RIGGED’s option alerts that are powered by AI and machine learning algorithms running through thousands of lines of historical data.
Traders can use KOMODO to determine if they want to enter a trade.
KOMODO stats include:
WR (win rate) - The percentage of alerts in the subcollection that returned over 100% with no drawdown consideration. Higher values are preferred.
P (p-value) - The statistical significance of the win rate. EDGE equals strong correlation, ADV suggests correlation, ZERO means not enough data.
KTR (komodo target range) - The range where the winning alert drawsdown to on average, a great place to place bids!
DHD (diamond hand difference) - the percentage change between max gain and end of session returns. Green values suggest longer hold times. Red values suggest take the money and run.
Some thoughts on KOMODO:
KOMODO looks at A LOT OF DATA to calculate its stats. We like to see a WR of 50% or higher and EDGE to take a large trade size.
MDA is important because if it's lower than -20%, it means we can often find a better entry target.
Traders should always think about how much time is remaining in the session and what's required for them to win the trade.
Always lose small and sometimes win big.
QQQ 05/14/24 KOMODO beats TRADEABILITY
The BULL BOMBS has a 55.56% win rate with EDGE (statistically significant) and the BEAR BOMB has 12.50% win rate where P = ZERO (no significance).
The BULL BOMB returns a 473.70% max gain in 2 hours and 380.09% if bought and held until the end of the session.
TRADEABILITY gives us strategy and difficulty (what could happen and what to look for).
KOMODO tells us what's happened with similar alerts before. Past performance does not guarantee future results, but in the world of 0DTE trading we see a lot of the same setups over and over again.
ON FIRE tells us what's actually happening (alerts that are winning).
🔥 ON FIRE - What’s Happening (Winning)
T (tradeability) can be on “FULL SEND” or "EASY MODE"
K (komodo) alerts can have 60% WR and EDGE
And nothing can happen and they can all get completely destroyed by the lizard people who control the stock market.
Markets are going to market.
That's why we created ON FIRE 🔥
ON FIRE notifications are sent via discord and email whenever an option alert returns 100% in under 30 minutes.
Here's why:
Whenever we get volatility, it normally continues throughout the session.
We want to trade options when the market is moving slow and touch grass when it's not.
Volatility is guaranteed when the ON FIRE channel is pinging over and over.
ON FIRE price action =
TREND DAY and the alert and subsequent alerts of the same side will go 200% to 300% or higher.
or
PERFECT TAGS of BULLS on bottoms and bears on tops, easy to trade and switch sides and ultimately make money.
🔥 ON FIRE IS THE STRONGEST SIGNAL TO PAY ATTENTION TO THE SYMBOL.
WHATEVER IS ON FIRE (SPY, QQQ, NVDA, TSLA etc)... PAY ATTENTION AND FOLLOW TRADEABILITY!
NVIDIA ON FIRE 5/17/24
At 14:04 you receive the notification that the 13:41 306 BEAR BOMB hits a 104.99% gain in only 21 minutes.
THIS IS A SIGNAL TO PAY ATTENTION TO NVIDIA!
Another BEAR CHASE follows up the alert and has a 50% win rate. It returns 156% in 30 minutes.
The 930 strike is 3-down from the blue line (opening price).
If we followed tradeability and went to runners (free contracts) lower than 925, we got our 100% trade and go out.
TKO System Thoughts:
The stock market is PVP lizard vs lizard and lizards versus retail. RIGGED is designed to let anyone copytrade Wall Street because they have better information, resources and trading skills. However we cannot follow them blindly.
TKO is the simplest way to stay out of bad sessions and trade good ones aggressively.
Here's how we like to use it:
1.) The first TRADEABILITY update is at 10am and anything other than FULL SEND or EASY MODE, we're not even going to look at the market until after 1300.
2.) KOMODO alerts with a 50%+ WR and EDGE are preferred. If they match tradeability (aka bull below the blue in the final session), then we will trade with larger size.
3.) ON FIRE is new to RIGGED and we'll start sharing it more in the documentation and our videos. Tradeability will tell you it's a possible trend day, when ON FIRE is going crazy then you know it really is one.
Future youtube videos released to the channel will cover the TKO system for each session.
TKO will get you into good trades and keep you out of bad ones. Trading is still EXTREMELY HARD. It's important to familiarize yourself with the other concepts such as trend days, mean reversion, ping pong and the RIGGED concepts.
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