Our method consists of two different aspects. We have our calculations and the way we do our transactions. Every new tick of the price, every calculation, every transaction and every overview brings us a step closer to a new standard.


The Entry Search

The first step is to determine the entry chances on every index. We are focussing on the major indices around the world such as the German DAX, French CAC and the well-known indices from the United States, the Dow Jones, the Nasdaq and of course the S&P 500 index. We use these indices to get a good view on the Dutch AEX and the German DAX, the indices where we want to buy option contracts on.

In-Depth Analysis

When we have our so called 'active' indices, we want to determine the active sentiment. We have a couple of different tools to do this. We have the very short term to longer term index graphs, combined with several indicators to further determine the sentiment. The indicators that we use include the Relative Strenght Index, Bollinger Bands and three of our own designed indicators.  Ultimately, we combine everything with the Harmonic Trading theory to find particular patterns that are in accordance with the outcome of our indicators.

Preparatory Calculations

After finding out what the current active market sentiment is, we perform several calculations on different possible entry prices of the active indices. With the outcome of these calculations, we move forward to determine which option contract would be feasible to buy. With these contract in mind, we are able to calculate the option greeks on every suitable option contract. After putting the outcomes in a graph, we can discover trends in the option prices.