The Envelope Daily Strategy
PAT$ Traders use this strategy on our DAILY charts to get a longer-term view of the market. You can also use this product as a swing trade option for longer term trades. The strategy and software are often very accurate at predicting reversal areas with oversold and overbought signals that you use to your advantage.
Mack and PAT$ traders use this strategy daily for a longer-term view of the ES futures market. That is why most every price action day trader needs this package, so they can get a better feel for where prices may be heading in the bigger picture.Â
However, if you like to swing trade, you can combine the Envelope Strategy with futures options for a very low risk opportunity to grab large profits. The timing with the Envelope Strategy is usually very accurate, and you can use that ability to take advantage of oversold and overbought conditions while catching fast and often volatile reversals. Time these reversals to your advantage and use low risk options that are close to expiration where you do not have to pay hefty for time and get those options cheaply while buying very close to the money.
If you are familiar with options, you know that options that are “in the money,” move dollar for dollar like an actual futures contract, so you get the best of both worlds with this strategy. You get a known entry price and none of the worry of unlimited losses that often come when carrying futures trades overnight. With this strategy you can never lose more than your initial investment, yet you get unlimited profit potential as well. Futures are highly leveraged, so once options start moving in your favor while in the money, the profits will rack up quickly, just as they do with a regular futures contract.
The key here though is that you do not have all of the unlimited losses to worry about, so you sleep well at night knowing your money is working for you and not against you. Should the unthinkable happen, you know your losses up front, and they are limited and small because you bought an option that had very little time left on it and you purchased it very close to the money as well, so prices do not have to move far before your option is “in the money,” or moving dollar for dollar just like a regular futures contract.
This little known and seldom used strategy gives you unlimited profit potential with a small and limited risk. This strategy offers you a safe way to swing trade futures without the risks that trading full futures contracts carries. Combine this option strategy with our software that effectively predicts overbought and oversold conditions, and you have a fantastic futures trading strategy that does not require you to sit at a desk and look at a screen all day.Â
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