New Feature Announcement For VIX & Index/Sector Trading Service Members!

New Feature Announcement For VIX & Index/Sector Trading Service Members!

We’re introducing the SPY Wave & Volatility Trading Model in the VIX and Index Sector Trading Service. We’ve been encouraged by what we’ve seen during development and testing, and we’re now beginning to track the signals in real time and will begin to share this Trading Model with the members of the service.

This rules-based model uses our broader Elliott Wave analysis and preferred market direction rather than requiring a specific pattern entry, such as a 1–2 setup or an ending-diagonal reversal. An Elliott Wave score helps translate the outlook expressed in our reports into a consistent framework for evaluating trades. That score works alongside technical and volatility signals, entry filters, and risk-management rules.

The primary Core component follows that analysis, while Supplemental trades look for qualifying opportunities when Core is out of the market. Each follows its own entry and risk-management rules, with Core always taking precedence.

Entries and report-driven exits occur once daily, around 3:30 p.m. Eastern Time, after the Market Update is posted. Stop-loss and profit-target exits remain active throughout the trading session. A daily review does not mean a daily trade, the model acts only when its rules qualify and may remain in cash.

The model is designed for members with a longer-term mindset who want something more active than simple buy and hold, including those open to short exposure at times. It aims for strong returns with smaller drawdowns than a continuously held position.

While this model will run independently of Mark’s and my current options trading system, our review during testing found that historical options trades aligned with the model’s direction performed better than those taken against it. We’ll use that context when evaluating future options entries. A potential setup that opposes the model’s direction will receive closer scrutiny to determine whether its risk/reward profile and estimated probability of success justify taking the trade. We expect this additional review to strengthen our trade selection, with the goal of improving overall options performance.

Members will therefore have both a separate set of model signals to follow and additional context for evaluating our options setups. When qualifying options opportunities are limited, the model may still identify trades under its own rules.

Attached to this message is an overview explaining how the model works, along with an example of an entry and exit signal post highlighting the action, relevant price levels, and a brief explanation. The rules behind the model are detailed, but the updates will focus on straightforward information members can follow.

We hope you’ll find this a valuable addition to the service, and we look forward to your feedback as we roll out the model and begin sharing Wave Alerts.