 Hey everybody, it's Hari Swaminathan from optiontiger.com. What I wanted to do in this video is to lay out four or five simple rules for the proper usage of the SPX Tix Algo as well as the custom RSI indicator. Now these things are very powerful and we just need to follow some of these rules and apply them on a daily basis and even if you take a five contract position on the SPX with the 35 Delta, you can easily generate anywhere from thousand to two thousand dollars a day. So what I want to do in this video is to lay out these rules and then what we'll do is we'll go back and look at a few days of market action and see if we applied these rules properly what would have been the performance of these SPX daydrays. So on this slide we have the rules and guidelines for the usage of the Tix and custom RSI. The rules per se are just a few and then there are just some usage parameters or usage guidelines and let's go through each one of them. The first one of course is we have to let the Tix develop for one hour at least when the market's open. So we're talking about 9 30 a.m. US Eastern time and you want to let the Tix develop for one hour at least. Now there could be situations where there's strong momentum at the open and the market rushes off either to the upside or to the downside but you have to bear in mind that's more of a momentum play rather than a Tix play. So that could be a great day trade if you get into that but it's not a really based on the Tix per se. It's based on the strong momentum coming out at the open. The second one is once that one hour or 45 minutes to an hour has passed by then you want to gauge the market sentiment because by that point the Tix will probably tell you which side of the market it wants to go. Now granted later on in the day that might change but at least for the morning session you might get a good idea as to which way it wants to go. Now bear in mind when you have the ES which is just plus or minus five on either side of the flatline that's really considered neutral. The average two range for the S&P on a daily basis now is about 15 points and so it can go anywhere from plus or minus 15 on any given day. Obviously it can go more also and it can go less but if the market remains within a plus or minus five points then that is more of a neutral day and therefore you might have to be a little bit more patient with that particular day. Then once a sentiment has been set you want to align your trades. So basically whether you're going to go to the call side or to the put side you want to align it with the market sentiment on a five-minute chart. So until then you may be looking at a one-minute chart just to get some quicker feedback loop. However once a one hour has passed you want to be looking at the five-minute chart and that would be a lot more clearer that will provide a lot more clarity. So if the ES is bullish the ticks are above the zero line and it's increasing and custom RSI is in the bullish zone that's the perfect time to take a call frame. If the ES is bearish the ticks are below zero and decreasing and custom RSI has entered the bearish zone that is the time to go in for puts and once the custom RSI enters the bullish or bearish zones then you want to remain in the trade until that direction changes and of course you want to look for some persistence. So which means on the five-minute chart you want to see at least two dots with the above conditions and that's what gives you confidence for the trade. Bear in mind if the ticks and the custom RSI are not in sync then there is no trade. If the custom RSI or the ticks are turning around and you're already in a trade please take profits because you can always get back into another trade if that's what is needed but for now when you have profits you can take it and then when you want to see a little bit more finer view of the chart you can step down to the one-minute chart anytime but always come back to the five-minute chart when you're making trading decisions because after the first one hour or so you're going to find much more clarity on the five-minute chart. Let's now go into the platform and let's see a few days of trading and see if we can apply these rules and guidelines and how these trades would have played out. So this is the trading action for Friday July 19th. Now you can see the market started right here and it was up about six or seven points at the open and then as it comes down you can see that it's still near the flat line the ticks are near the flat line besides we are not even in the first hour so the first hour gets over somewhere here so it's only after this that you really start thinking of taking trades and now you can see there is some persistence here there could be a bearish trade right there after that you can see that the green ticks are coming in so you would have gotten out over here this is below the zero line so even though you're seeing green ticks first of all the custom RSI is still more closer towards the bearish zone and the green ticks are below the zero line so there is no call trade at all then if you look at this once again it's choppy and so there is no persistence there here you find a couple of green dots and coming up nicely but it is all below the zero line and the custom RSI has not yet come out of the bearish zone and so there's no trade there either and then once you come here once again lot of choppiness here perhaps you might have taken a trade over here but that would have gotten stopped out right away because it went away that opportunity is gone and then you see some persistence but once again now we are above the zero line and so there is no put trade there and so you would want to wait over here and then this is in the it goes into the bearish zone and once again there is no trade at all all the way till here and perhaps maybe this was a good trade one you see some you know a sudden drop in the ticks and then it becomes persistent and the custom RSI clearly goes into the bearish zone and it remains there for a while now you do see some slight green ticks over here you might have come out and that's fine this would have been a decent trade from this level to this level and this would have been a decent very good trade this would have been on a five contract position as I said this would be about a thousand dollar trade at least you know that's it so really one great trading opportunity on Friday let's go back one day to Thursday this would be July 18th and as you can see the first one hour the ticks are settling in there is no real clear direction here even though you see the RSI in the bullish zone there is no clear trade it's only here that you start getting some persistence on the bearish side and this would have been a very very good trade you can see that you could have come from this level all the way down till here so and even till here you would have gotten out at this bar and so that would have been a fantastic trade a fifteen hundred dollar trade I would say but then the green dots now are below the zero line so there's no trade there and there's no trade through any of this and the only time now you get some persistence is on the upside towards the close and this would have been a decent bullish trade because as you can see this starts becoming persistent and that's really what takes the market to really high levels over here in fact it closes somewhere here but the trade would have gotten over somewhere around this level here that would have been another thousand dollar twelve hundred dollar trade all right let's go back one more day here and this is where you get fantastic opportunities because you can see that you're starting off and right away the ticks are going below zero and then you have some persistent conditions with the RSI completely here so this would have been a great trade and this might be a day where you take the trade a little earlier than one hour because you can see that there is some persistence going on here and especially after these two or three dots you want to take the trade so here I would say from a three zero zero three level you can come till at least two nine nine five that's eight points on the S&P so this would have been a fifteen hundred to two thousand dollar trade right there and then of course you're seeing some bullish action you don't get into that because everything is below zero and then you want to see to see see if you can get some more bearish but the customer RSI never really gets in there so there's no trade through any of this and then from here perhaps you might get into a trade because this is you know this is pretty good but then you would have been stopped out over here so it would have been a small trade and then that's really it after that it just chops around so on Thursday you would have had two very good trades both of them would have been approximately fifteen hundred to two thousand dollars and then now let's go back one more day here you see once again the tick starts and it tries to go up but there's no there's no real momentum to the upside there's a little bit here on the ticks but the customer RSI is not cooperating and therefore there is no trade so when the ticks and the customer RSI are not in sync there is no trade so even though you see these green dots you don't want to get into the trade so really the first time you start getting into a trade is a bearish trade right here and you see the customer RSI is already in the bearish zone now you see two or three dots and so somewhere around here which is about three zero one three and then you ride it all the way till here perhaps anywhere here you can see the choppiness you just get out because you would have made your fifteen hundred dollar profit on this trade after that may be a small trade here that's about it and then it just becomes choppy and actually makes its way up a little bit so let's go back one more day here and then see this this is also something there is momentum coming in at the open the ticks are showing higher but you can see the customer RSI it's not it's not there and that because look at the price action very very choppy there's nothing going on there and therefore there is no trade on this as well so the only time you do look at it now clearly everything is above the zero line by the time you reach into the afternoon session and so somewhere here you might be tempted to take a trade it wouldn't have lasted very well you would have probably been stopped out very quickly and then there is no trade there's just choppiness here so really on this was on the 15th of July there's no real big trading opportunity at all and that's to be expected because not every day is going to present opportunities and the key is not to over trade and just take the best trading opportunities so once again you see at the open the ticks are just flat lining and then there is this is in the bearish zone but there's no trade there and then once it starts getting over here once again it's quite choppy so there is no there's no real trade and all the way till here there's no real trade the only trade that comes is right here and once you see this condition right there and the customer RSI clearly in the bullish zone yes you can go in for a trade and that could have lasted anywhere till here so I would say somewhere from the 30 one one level up to the 3013 so not a huge trade this would have been a five to seven hundred dollar trade but it would have been a profitable trade there all right let's do one more and here you can see as the markets open tries to go up there's nothing there but in any case we don't do anything for one hour and then you can see some bearish action coming in so somewhere here maybe after 45 minutes after the markets open you can take the trade somewhere here and that would be a 3000 level and then you would have gotten out at the 2996 not too bad about an 800 dollar trade and then once again you see the customer RSI is still coming out of the bearish zone so all through this you don't want to take any trade even though the price action on the chart looks attractive you don't want to take the trade and so you let it go and once again you can see some weakness coming in but it also cannot sustain itself the ticks is still above the zero line so that's it there's no real trade there perhaps here towards the close is what you're looking at because now customer RSI is flirting with the bullish zone and over here it goes into the bullish zone so in the last half an hour you do have a nice trade about an 800 dollar trade again if you apply these rules consistently on a daily basis I feel you can get one to two trades don't look for more trades than that unless it presents you with the opportunity but even if you do one to two trades and on a five contract position I think you can average about a thousand dollar day profit using the SPX ticks indicator as well as the customer RSI if you have any questions you can email me at infoadoptiontiger.com thanks