 Alright folks, welcome to the webinar. I know some people are going to be joining in but we can get started. As I said, this is the intraday chart of the ES Futures, which is the S&P 500 E-minis. And we are looking at a fairly down market, 15 points down. And I think it's coming off the back of some statements that President Trump made about the US China talks just about an hour or so ago. And that has sent the markets going down. But regardless, let's see this is an up and down kind of thing that's been going on for a long time now. And so, you know, remains to be seen. But let me go to a presentation first while we are waiting. This is the Option Tiger webinar series. We hold about one webinar a week and it'll be on various topics including day trading, swing trading, algorithmic tools because that's become important now even at the retail trader level. So we'll be talking about that quite a bit. There'll be some webinars on technical analysis. There'll be some webinars on options strategies. So the best way to stay informed or keep updated is if you can go to this Bitly link and this Bitly link will take you to a page on the Option Tiger website and you can enroll in this course for free. I think I showed you another one also. Either one is fine. You can go to one of these pages and you can register there. That way you'll be updated with all the latest webinars or even the recordings and all of that. Okay, so let me come back here. While we are waiting for some people to come, I'll just give you a brief background about Option Tiger and myself. My name is Harish Swaminathan. I'm the founder of OptionTiger.com. I started Option Tiger in about 2012 but I've been an options trader for much more than that. I started about 12 years ago and since I founded Option Tiger, that's when I've become a mentor. And I have a Udemy channel. I think many people may have come from there also. My Udemy channel has 100,000 enrollments and 60,000 unique students. You can go to Udemy.com and you'll see you can go to Udemy.com or just search on my name there. And you'll see this is 61,000 students here. So that's a little bit of my background and of course I run OptionTiger.com which is my own website. And if you go to the homepage you'll see various products there. In addition to, we're going to be talking about these algos today. But in addition to the algos, if you're a complete beginner in financial markets or beginner to options, you can start right here. Each of these modules has about 15 to 20 courses. So it's all very comprehensive and you'll see all the courses as well over here. And then this is of course in the beginners module. And then once you get into the intermediate, it's again the same thing. There's about 15 to 20 courses and the same thing with advanced strategies as well. Now over the years, I have through trial and error, but I have developed my own tactics and techniques. So you can call these sort of like gorilla tactics to deal with the options market. Because in the options market, we are dealing with market makers on the other side. And so it's very important to get an edge. And so all of these systems, they all tackle some kind of an options trading strategy. So in this case, income max is spreads and straddles. This is a day trading system or swing trading system. This is for ETFs. This is to manage earnings reports, which comes every three months. And here you go with calendars, iron condors, weekly options. And this is a generic adjustment product. So all of these are very deep intellectual property. It's all my proprietary intellectual property and they're very sophisticated techniques. So all of these are here. You can find it on the option Tiger website. Now today, what we are going to be discussing or seeing I'll be demonstrating this is the SPX index day trading. And this was just launched this month. And so obviously, and this is very powerful and this is very powerful. And so we'll see we're going to be mining the deep internals of the SPX index itself. So let me go there and let me, you know, talk about that. So in general, algorithmic tools have become popular, becoming popular. And at the retail level, it's still a little nascent, but definitely becoming popular with options. It's more trickier unless you're a big hedge fund with a large IT team and a larger hardware budget. It's hard to number crunch all the different parameters that go into options. And so with options, it's even more trickier. And so, you know, what we do at what I do at the retail level is to try to give the best tools and indicators that can work for individual traders. And so previously, we had to cycle through each stock and each chart and indicators. But now Algos can be coded to do the same kind of logic behind these, you know, these Algos. But then we can put it on watch list. We can do a lot of things. And so, you know, what I have currently, I have a day trading Algo which filters the best stocks. And that's the screen I had earlier over here. So this is just show you a brief over here. So for today, this is a day trading day trading signal right there, you can see. And it also looks at pre market. And so you can see these are all the very bearish candidates. So today, if you wanted to take a trade to the bearish side, these would be your candidates and then you can go into each one of them. If you know if the list is too large, then you'll have to pick something and I have a put call ratio also over here. So any stock that has a higher put call ratio is obviously a good candidate for a bearish trade. So today, in this particular Algo, we are seeing all these six or seven stocks that are behaving much more bearish than the other. As you can see, almost all the major stocks are down because we are down about 15, 16 points on the futures. But we'll come back to this. I just wanted to show the day trading Algo for the stocks. And then today, we are going to be talking about the day trading the SPX itself, the index. And so this index also has a lot of advantages. And so we're going to combine two different indicators. They're going to get a deep look inside the market internals. And this is going to give us some very good insights as to what kind of trading we can do. I also have a swing trading Algo. The only difference is it's a multi-week trading timeframe. The day trading Algo looks at every five minutes, whereas the swing trading looks at I would say a few weeks. And then, you know, when you take a trade, also you want to take a trade that and there's a service around that too. And I can show that later. So let's talk about the SPX market internals. So as you know, the SPX is a index composed of the 500 biggest companies in the US. So when we look at a futures chart before the markets open, the futures are simply trading based upon sentiment that has happened before the markets open. So whether it's coming from Asia, whether it's coming from Europe or whether it's coming from the US itself. The futures up until 9.30 a.m. Eastern time is simply a reflection of the sentiment that has developed for that day. However, once it becomes 9.30 a.m. and all the stocks start trading, then we have a different set of dynamics. The SPX index itself then actually is calculated by how each one of its component stocks are behaving for that day. So with 500 stocks, there's a lot of data there. And so we already have some standard indicators that are available to us on most charting platforms. One of that is the ball SPD. It's fairly helpful. It gives you the up volume minus the down volume. It's not a complete picture, but it's a decent market internal. Similarly, you have the advances minus declines also. And then you have the ticks. Now the ticks are very interesting because once the markets open and all 500 stocks start trading, then each of these stocks are either ticking up or they're ticking down. And they're ticking up and ticking down several times in one second itself because some of these stocks trade in very, very high volumes. Apple, Google, all of these are good examples. And so there is several up ticks and down ticks. And so then if you look at the combined 500 stocks, the ticks gives you the up ticks minus the down ticks at any given time. So the ticks, you can say, is the lowest denominator because it is catching the lowest denominator of market data, which is at the tick level itself, at each individual tick level. But the tick itself is not very helpful because if you look at the ticks, let's go take a look at the ticks itself. So it's called dollar tick for the NYSE. And so if you look at the tick, this is a five day, five minute. And so the previous day is right here. I mean, this chart, there's no way you can make head or tail out of this. So for every five minutes, I mean this five minutes, the ticks went up a lot and then it comes down a lot. Then it comes down some more, then it goes up. But this chart itself doesn't provide too much meaning or too much insight. What we need is something else. And that's what the SPX tick algo provides. So if you can think about it, when each stock is ticking up or ticking down, and then what we do is we take a cumulative value. So let me go back a day and show you the previous yesterday's trading day. And you can see that once the market start opening over here, the first five minutes ticks down. And then the next five minutes, this tick is added cumulatively to this value. And so now you have a chart that is going cumulatively every five minutes. So what does that do? That tells us that as the trading day is progressing, whether we have a bearish sentiment because we are calculating the cumulative tick. So in one sense, we are assessing the breadth of the market. So which is how many is the market weak? Is it strong? And if it's weak, is it weakening further? That's the kind of information that's very helpful. So as you can see yesterday, once the market's open, the ticks were going down. And I'll talk about the customer RSI later. But here you have a trade right there because it's telling you the market internals are weakening. And the moment it starts going up, you get out of the trade. And so even if you got in somewhere here or here, this is a nice five, six point move on the S&P. And if you're dealing with S&P options, a five, six point move just on a five contract position with about 35 delta can generate about $1,200 to $1,500 in profits within minutes, 15, 20 minutes. And so you want to wait for these very persistent kind of moves and that's when you take the trade. So I'll get into all of that. I just wanted to show the concept of the ticks and then the concept of the cumulative ticks because it's the cumulative ticks that really give you the insight and not the ticks themselves. So now the markets are not open. So you see that the ticks are not, you know, they're not there yet. So with that little background on the ticks, let me go to the next one, which is really cool. You know, this is the custom RSI. So you've probably seen the regular RSI before. It's just the relative strength index indicator. And it generally, you know, shows you when a stock is overbought and when a stock is oversold, you can see the values are the overbought values generally considered 70 and the oversold is 30. And it's also considered to be a reversal indicator. So once the stock gets into overbought, for example, you know, you can, you know, it'll sort of reverse at some point may not be immediately, but at some point it will reverse. So it's generally considered to be a reversal indicator. Now the custom RSI is the normal RSI which has been customized highly. And this customization, what it does is it changes the meaning of the regular RSI. So in this case, the custom RSI tells us when something is bullish, you stay in the trade. And when something is bearish, you stay in the trade. So it creates these zones for you. And so let's go back to the same example from yesterday. And if you see this trade right here, you know, the custom RSI goes into the bearish, you know, bearish zone right away. Because, you know, all this pre-market action has been bearish. However, we don't take the trade based on the custom RSI. The custom RSI is just a confirmation indicator. And what you want to do is you want to look at the ticks. And when the ticks have lined up, and then the custom RSI gives you the confirmation that you can stay in this bearish zone until, you know, shown otherwise. That's when you get out of the trade. So here, as you can see, this one was a little bit of an uptick here. And once you see two dots like this, you want to get out of the trade. So, you know, if you had gotten somewhere here, you would get out somewhere here. So which is still about a four or five point move on the S&P. And so the custom RSI is a great confirmation indicator. And so as you can see, then through the day, the custom RSI goes into the bullish. However, if you look at the ticks, the ticks are not bullish. They are below the zero line, first of all. So it starts off below the zero line. And so you don't want to take a bullish trade because the ticks and the custom RSI are not aligned. So the next opportunity you get is somewhere here. And you can see that the ticks are already developing negative. So even at this bar, you have three red dots and that's good. However, the custom RSI is still in the bullish. And so you want to wait for this and get in somewhere here. This would have been a small trade, maybe three points on the S&P, which would be about a $500, $600 profit. And then it came out of that zone. Let's see if there was another one. There's a brief one right here. As you can see all the customers here, there's one. There's a nice one over here. And then there is one more over here. So on a day like yesterday, which was a negative day, you want to look for bearish trades because the S&P is bearish. The ticks are below the zero line. And so you want to wait for bearish trades. And the way you wait is you want to see at least two dots on the five minute chart. And you also want to see some confirmation from the custom RSI. And so that's when you would take the trade. So here you take the trade somewhere here and you would get out, you know, as soon as the custom RSI turns around or the ticks turns around, time to get out of the trade. So, you know, that's how you would interpret this. We do have a couple of minutes before the markets open. So let me just go to my presentation again and lay out some basic rules as to how you would trade this system. So these are some bit.ly links and I'll be sending this PDF as well. And you'll be watching this video so you can look at that later. Meanwhile, if you have any questions, always email us at info at optiontiger.com. So here are some rules for usage of the SPX ticks algorithm. So you want to let the ticks develop for about 30 minutes to one hour unless there is strong momentum at the open. If there is strong momentum at the open, then fine. Like yesterday, there was very strong momentum at the open. But you want to let the ticks develop because the tick data has to come in. And so it is rare. Now today also we might see some powerful move at the open. As you can see the, you know, the S&P is very weak in the pre-market. So we might be able to see that. Then, you know, once the ticks data has developed and a storyline is building for the day, that's when you gauge the market sentiment, meaning whether you're going to go for calls or whether you're going to go for puts. And you want to align it on the five minute chart. So if the ES or the SPX is bullish, the ticks are above the zero line and increasing and the customer size in bullish, you take the call option. If the ES is bearish and the ticks are below zero and decreasing and the customer size is in the bearish zone, you take the puts. You look for persistence of about two dots with the above conditions. If the ticks and the customer size are not in sync, then there is no trade. You take the profits, if one of the two indicators start to go the other way and if you want to get a finer view of the chart, you can step down to the one minute. It's very, very insightful when you step down to the one minute and I'll be doing that once the market starts. So that's as far as the ticks rules itself. Now the trading plan is this. You choose the nearest expiry because we don't plan to hold it overnight. 35 to 45 delta, whether it's call or puts on the SPX options. The trading plan assumes an account size of 30K so that we avoid the pattern day trader rules. And if you take a five contract position and of course you can start below and if you assume a five to seven point move with a stop loss at 25% in the long run, this will work very well. 8 out of 10 trades are going to work in your favor because the indicators are very powerful and what they tell us about the internal state of the market is very powerful. And so you don't need any adjustments, we don't carry the trade overnight and so you're in maybe for 15 minutes, half an hour, whatever it is and you take the profits and you run. In general, I find that there is a trading opportunity once in the morning and once in the afternoon session as well. In the middle, there is somewhere between 11.30, 12 in the eastern time up until about 1.30 to 2 even the big traders go for lunch and so you will see a lull in the activity and that you can see with the volume. So during that time, there's no need to look at the markets because you don't want to be looking at the markets all day but there is an opportunity generally that comes once in the morning and once in the evening as well. The markets have just started so let's go take a look. This is where I want to jump down to the one minute chart because we want to get a slightly quicker feedback loop as to what's happening with the ticks. So as you can see the market started negative, which is no surprise. It started around negative 145 and then it ticked down again to negative 265. However, as you can see the price action, the S&P wants to recover a little bit. So let's just watch this here for some time and of course we need to let the ticks develop a little bit. So if there was strong momentum at the open that can take it down then we can potentially jump on that trade because we know the futures are 16 points down. So here you see, there it is, it's being taken down and we're getting a quicker feedback loop because we are on the one minute chart. So let's just watch this and see what's going on and let's see how these one minute ticks develop. So as of now you want to watch this number and this number is here. It'll tell you right here on the left hand side what the tick value is. So as you can see that bar just got over and we want to calculate the tick value. Now it's going down even further, negative 333. So that is a negative 100 below even the previous one and it's still going down. So in general I wouldn't advise to go in at the open but this could be one situation where because of the strong momentum from the pre-markets you might want to take a small trade and so if you take a small trade you would go to the options and get into the S&P actually let me take this off here and once the options come up we'll see but as you can see the ticks are definitely developing to the bearish side but it's still very early to take a trade so unless there is strong momentum like we do right now I would say you do want to wait. So on most days you might not get that kind of a strong momentum going into the open and yeah I mean if you wanted to take a small trade I would put a two contract trade over here it's looking negative, the ticks are going down and now you can see the customer side is well in the bearish zone as well. So but still a little early in the market day I would say I think at least you have to give it about 30 minutes to 45 minutes because the tick data needs to get established and the pattern needs to get established and a storyline needs to build and so that has not happened yet and so you might see a lot of choppiness at the open and which is why you want to get a better feel for the ticks and go in when that story is being built nicely. So once again you can see the now the ticks are negative 415 but now once the markets develop for about a half an hour or so you want to move to the 5 minute chart. So in any case we let this develop a little bit let me go back and also you know I think there's a couple of things to you know also mention. So here you know as you know with the SPX the SPX options you know you can trade the SPX options directly for sure then you can also trade the spider ETF or the spider options. Now if you're a stock trader if you don't trade options then you can trade the spider itself you know the spider is an ETF and you can trade the spider itself. You can trade the slash ES options on futures so I think you might have heard about it the slash ES has options on it as well then you have the SSO which is a 2x leverage of the spider ETF then you have SDS which is the inverse 2x of the spider ETF then you can trade the ES futures itself on the active trader screen so you have the flexibility whether you're an options trader whether you're a futures trader whether you're a stock trader you can use this algorithm and trade any of these instruments. Now because this is a market internals algo you cannot use this for stocks you cannot use this for stocks and that's why if you want to use it for stocks you want to get this algorithm over here. So here as you can see we have some very bearish candidates once again you want to align your trade with the prevalent market conditions which is bearish now you'll see a couple of very bullish here but you don't want to touch them today and you might wonder why is apple bullish it's 24 cents a negative that's because where it's coming from it might have been coming from a dollar or two negative and so on a 5 minute basis this is bullish however you don't want to go for the bullish candidates you want to go for the bearish candidates so let me take this out again and put it away let's go take a look at what the markets are doing some kind of a recovery here this is what I mean you might find some choppiness here at the open so you want to let this open dynamic set in and let there be a storyline before you take a trade now you might see this the custom RSI is moving into bullish the custom RSI is only a price based indicator it does not do anything with the internals and so based on this price action here the custom RSI has entered bullish but that doesn't mean we can get into a bullish trade because our primary indicator is the ticks and it's only when the ticks and the custom RSI are aligned that's when you take the trade so here there is no trade even on to the bullish side there is no trade because it's a weak market and so you want to wait for the put trade and go down and if you're a stock trader you want to take a short position rather than a long position and if you're a futures trader you want to sell the futures rather than buy it however this is not the time as you can see there is a little bit of a stability or recovery coming into the market and so this is exactly why you want to give the ticks some time and let it develop so we'll let this develop some more and we'll come back to it let me go back to the presentation I think there's a couple of things more that you should know when you're trading these instruments here I do have a July special I'll come back to that I think and then of course we have some testimonials that are already coming in and of course you'll get this you'll be seeing this video but here you go Todd just made and I would highly recommend you paper trade it at least for some time just get used to pulling the trigger properly as to when you need to go in for the trade and when you don't need to go in for the trade so here you can see this Todd just on that day he made 3100 and here's a trader using the spy you know small trade this is actually a very impressive trade it made 300 on 400 in equity so that's 75% ROI and there you go so and then there's one more trader here 1200 plus profit on her trade so these are all the things there's flexibility in the trading instruments you just stick to the trade plan and if you follow these rules this can be a very good intraday SPX trading algo and a trading system frankly and the advantage with the SPX is that you have all this market data internal information which you don't get when you talk about stocks when you talk about stocks you don't have these so here we go as you can see now a little bit of a turn coming in so this kind of choppiness will exist when the markets open and so you want to be careful of which is why it's important for the ticks to come in and we are still on a 1 minute chart we are only about 10 minutes into the market open I would say it needs more information before the ticks start presenting presenting us with meaningful information by the way if anybody has questions please do type it into the question box I will come to the question box every now and then when I get a chance so any questions please type it in there 5 contracts generally it will be anywhere between a 2000 to a 4000 to a 5000 dollar trade and you can check it out if you go to the 35 delta or 40 delta you can see the prices also it depends which expiry you choose and you don't need to choose very far you can choose today's expiry if you are trading it in the morning but if you are trading it in the afternoon I would say go to the next expiry now we know the SPX has 3 expiries and so there is plenty of opportunities without paying too much for your options and Calvin says you can also trade the XSP yeah absolutely now you can do that there is also the triple leveraged SPX L and all of that I just put the main instruments there that have a lot of liquidity and so you want to also look at liquidity before you take the trade but the SPX, the SPY these are all highly liquid you know instruments so there is absolutely no worries in taking those trades so here we go still some choppiness over here I don't think we still have a trade a good trade if at all there was anything it was right here at the open but that is just too soon to take a trade and I would just let that go because at the open you are going to see some choppiness so it looks like some kind of a recovery but bear in mind the ticks are still showing negative 400 so it is a down day and so you want to wait for the right opportunities to take a put option rather than anything else alright while we wait for this let me finish up with this presentation so then we can just focus on the markets here so you can you know a trading plan for $1000 a day just this much you know take a 5 contract position maybe a 3 contract position to start with just learn the triggering process and if you take a wrong trade and if it goes down just take a stop loss and come out there is no point in fighting with the trade there is no point in doing adjustments unless you are very proficient with options you know you can certainly do that but in general if you take the loss and this system will produce about 8 to 10 winners the trick is to master the part of pulling the trigger properly and which is why I say at least for a few days you run it through paper money and all you need to look for is 1 to 2 trades a day and if you keep that trading to that level it will be successful if you over trade it becomes a problem so anyway let's just watch the markets here let's see what it's doing so as you can see it is still choppy it's going up and down there is no sort of real persistence here at the open and so you want to let this develop some more so let me explain the I think I had a yeah I do have a special this month you know this is the July special and it ends tomorrow and if you have not seen it before this is a very very good special the SPX ticks algorithm code this goes for 997 and then the custom RSI goes for 497 but you can get that for free so I'll just point out that to you so if you come here to the home page here you have the market internals based SPX and what you can do is you can and then there's a playlist here okay you can watch this YouTube playlist there's a whole bunch of videos there's some sample trades all of that over there and then if you buy the algo then you don't need to buy the custom RSI you'll get the custom RSI for free okay so that's the that's the July special that ends tomorrow so I just wanted to make that clear and I think that's all I had for the presentation part let me just check it all of course you'll get this presentation also and so you will be able to look through all of these rules and also look at the markets and see you know and see how it is and if you go to the YouTube playlist there's a lot of analysis videos in that playlist itself where we look at various days and how these indicators work and so there's a lot of information there so let me go back to the markets let's just watch this so while we are watching if you have questions you can please type it into the question box we can talk about it right now waiting to see if we get a chance for a put trade because we are still 12 points down so at this point even though this looks like a nice move it could have gone it could have tumbled anywhere so generally not the way to trade you can of course take a scalping attitude and say okay I'm going to be out in two minutes or three minutes but that's not what this is all about here you want to pick one to two good trades a day and make that you know on a five contract position you can make a thousand fifteen hundred obviously every person's account is different and so if you have a $300,000 account you can increase your contract size but I would highly recommend that you keep your contract sizes small until you can take the right trades because you do want to pull the trigger properly and with these tools you can but the key is that you don't over trade so in any case let's watch this there's still a lot of choppiness here I'm just watching this so as you can see the ticks are improving now it's still negative but the ticks are improving and you can also get another feel if you have this day trading algorithm also you can now see there is more bullish than bearish if you saw earlier there was only one or two bullish and everything else was bearish but now we have more bullish but once again bullish is you know it's going to be relative here this is clearly bullish you know a booking is coming from 4.8 Twilio is 1.6 but just because Microsoft is down 72 cents it doesn't mean it's not bullish because in the pre-market it could have been down a couple of dollars and so what we are looking at here let's just go take a quick look at Microsoft because that's a good example of why that stock is showing bullish and as you can see it's been coming down all this while and boom so this is bullish for Microsoft this is bullish definitely so you can see the algorithm working in that manner so I'm going to go back to the ES here while we are watching and waiting this let's go back 10 days or rather 5 days sorry this is a 5 day this is a 1 day 1 minute let me move this to a 5 day 5 minute chart and let's go back some and see what happened in the previous days and go from there so here if you look at 5 days here we go and here as you can see this is let me go back to the beginning of the day so as you can see when the day starts even though the price is going down the ticks are generally above the zero line and so that's telling you even though this is RSI is telling you it's in the bearish zone just based on price action the ticks is telling you no that's not the case and so you don't really have a trade at all all the way until here you know here now the ticks are you know it's nice and positive you have the green dots developing here but it's only at this bar that it goes into the very bullish and then you don't want to be shaken out by 1 or 2 dots you want to you want to stay in this trade because the RSI is telling you it is bullish it is in the bullish zone so you want to stay in this trade and suddenly boom you get this nice little pump up and this would have been a $2000 profit on 5 contracts because just because this move is just intense and it would have been a $2000 and you wouldn't you may have taken off the trade over here but you know because there are 3 dots and I would say 3 dots is something that you would want to get out but if you look at the price action there's no real degradation of price and the customer are still in the very bullish but if not you can get back in somewhere here and then of course it's a little choppy on the ticks but you know you might have been a decent trade all the way to the end. So that was one let's go to the next day once again you see most of the time it starts off sort of in the midline and then depending on what kind of day it is you want to take a trade so here I think also was a bullish day but you want to take the trade you know somewhere here if you would have taken this trade you might have been chopped up you might have had to go through a stop loss however once you came in here this was the trade right close to the end you would have had a nice little trade over here once on this bar went above the 0 and the RSI is in the very bullish zone you would have been able to go into the close so if you did get stopped out on the earlier trade then this trade would have made up nicely for it. So that's as far as that day is concerned let's go to the next day this day clearly looks like a bearish day so you would want to wait and you can see the ticks developing here and once this thing also goes into the bearish zone this is a lovely trade actually this is a lovely trade and even though there's a little bit of choppiness and there's only one green dot so you're staying in this trade and this is again a $2,000 trade right there this is a $2,000 trade and you want to stay in there until you get the signal to get out now here the customer RSI wants to go out of the bearish zone and it's already changed direction over here so once it changes direction take the profits take the profits you've been in a nice trade so you take the profits let's go back to our current day see what's happening little bit of a recovery now you can see on the 5-minute chart the ticks are moving positive but it's still a negative day so it's pretty unclear how you would want to trade this because the futures are still negative 11 over here and it's still not yet half an hour 25 minutes and so I would want to go back to the 1-minute because we get a better feedback loop from the 1-minute chart so if we do that then we go all the way here and you can see on the 1-minute chart also the ticks are improving however we know it's a negative day so at this point you're not looking for a call trade you're looking for a put trade if there is that would be the easy trade this would be going against the grain so with this kind of a price action here you can see nice persistent green dots but it's all below 0 and the futures are down 11 if you were tempted to take a small trade you would want to keep it on a tight leash just take like 2 or 3 contracts and as soon as the profits develop just take the profit because it would be a trade that goes against the grain and so you wouldn't want to persist with that trade if at all and my opinion is that you want to go with the trend in the market and so you want to wait for the right signal that's better otherwise you might end up getting stopped out and you don't want to over trade that's for sure you don't want to over trade alright question here if you ever update the algo would the updates be for free once you get the algo it's a one time purchase and if there was any updates to the algo see once you get the algo you're going to go into a course for this algo and that course material has all the latest updates in fact I give every day sort of commentary every other day as to how the ticks are working for that day there are videos there and of course if the algo were to be updated you would definitely get the update ticks are slowly trying to come into the positive let's go take a look at our day trading algo and see what that is doing once again slightly more tilted towards the bullish than bearish that's because of this kind of price action you can see why that's the case because the price action has been from the open just these couple of bars down but it's basically trying to recover all the lost ground however we are still negative points and so that is an issue so any trade to the call side would be going against that premise question do you provide instruction on how to set up this chart yeah yeah yeah so once you get this algo you'll get complete the installation instructions you'll get the code and once you follow those instructions it'll be installed into your platform it works only on thinkorswim so if you were trading on another platform then I would say you open a thinkorswim account with TD Ameritrade without just the minimum balance that's a hundred dollars and once you do that you get access to real time data and you can install the indicators there and still do your trading in your own platform that you've been doing but yeah if you're doing install instructions as well as the code so the ticks have just gone into the positive as you can see but price wise we are still down 11 so this can change this can change there you go see it's come back now just slightly negative not a whole lot but once again here there is no trade because the custom RSI is not so the custom RSI is purely a price action and so you want that price action indicator also to be aligned with the ticks and that's why there's no trade at this point you know whether to the call side or to the put side okay so the custom RSI is going in it's gone into the neutral the ticks are developing negative there's already three dots there on this one minute chart so it's only a one minute chart we haven't moved to a five minute yet so it remains to be seen how this plays out this was some high volume on these two bars here as you can see it was it's higher than at least the last 10 or 15 bars and so this could be forming a support zone here in which case the markets may want to recover all of this lost ground you can see now it's down about nine points and so if that's the case then if this kind of a price action remains persistent then it's definitely you can take you know go into a call trade but it's still too early to say that a call trade makes sense because we are down nine and a half points still at this point it certainly looks like it wants to recover there's no question down about 8.25 8.5 so looks like the storyline could be that it wants to recover this lost ground you know from the pre market the pre market of course went down hard based on President Trump's comments on the US China talks and so the markets may want to brush that off now the other thing is as we know tomorrow is the Fed announcement on the interest rate cut so in anticipation of that the markets have been sort of you know slowly chugging to the higher side and so if not for those comments I think the market was somewhat neutral and then you know it might have gone up again today you know at least up until the Fed announcement a 25 basis point cut is actually baked into the stock market so it could be one of those instances where you buy the rumor and you sell the news and that could happen tomorrow so I'm going to go back to the 5 minute chart let's see how that looks and as you can see the ticks are coming down over here even though this was a nice up bar you can see that was a negative tick there so the RSI won't tell you that because the RSI just looks at price so as we get closer to the one hour mark that's when a trading opportunity can develop nicely because there's information about the ticks and the market is also settling in from all you know whether see when the markets open there is a pent up demand or a pent up supply and so that rushes out of the gate and that is one reason why you don't want to take the trade at the open because that's more of a momentum play rather than a tick play that's more of a momentum play if there is strong momentum sure you can you know you can but in general you will find that you're going to get a better storyline as the markets develop here okay so it's gone down to negative 47 and you can see custom RSI also turning now it's negative 129 on this particular bar but you still don't want to get into a put trade also at this point because your price action does not support that trade the custom RSI is still in the bullish zone so until that comes down and aligns itself with the tick action you don't want to you know get into a trade but we are somewhat getting into that point where a trade could develop a trading opportunity could develop let's go down again to the one minute and see how that looks certainly looking like it's moving down and you can see with the one minute you get a slightly finer perspective of both the price action as well as the ticks the ticks have improved to negative 188 here so there's quite a bit of battle going on around the negative 10 point level on the ES you can see that sometimes it goes a couple of points below the negative 10 and then it goes above also it's this zone that we're talking about let's go back to the 5 minute on the 5 minute we are still negative but it's a green dot here this bar on the 5 minute came up over here and so this tells me that there is some kind of a support zone building up at this level also temporarily okay that bar got over and the ticks I think would have improved yeah there you go it improved but it's still along the flat line so it's very close to zero there's no real trading opportunity quite yet it's not developed yet so almost we are almost one hour into this I think if you want to see some trading examples you can go to the YouTube playlist there's quite a bit of examples there and you can go and see and so the problem is sometimes you might not see a trading opportunity for a couple of hours and sometimes there might not be an opportunity in the morning session at all it could just come up in the afternoon so that's what it is so you check out the morning and you check out the afternoon rarely does it come in the middle of the day unless there is some kind of news or something like that but it does happen in fact just a couple of days ago there was a nice opportunity during the middle of the day and that could have been a $1,500 to $2,000 trade there so that does happen and so if you're watching the markets then but you want to wait for the right one and not just take a trade based on the fact that you want to trade you know there could be a trade there and there may not be a trade so I will leave it at this folks if you have any questions please email me at infoatoptiontiger.com but this is generally how the algo will work it's a tool obviously it's a very insightful tool to take advantage of intraday SPX trading opportunities and so in combination with both the tick as well as the customer RSI you can get some very very good trading opportunities unfortunately this morning not a whole lot because you know we started out negative and so while this looks like a good move it would have been a risky trade in the sense that you can take a small trade and could have made a profit but it is really going against the grain whereas you really want to wait for because it's down 11 or 12 points you want to wait for the nice put trade and it probably might develop now we're just coming to the one hour mark here this is generally when a trading opportunity might exist so what I'm going to do is I'm not going to kill the webinar right now but I'm going to step away I'll put these screens on and let's see I'll come back in a little bit and you know if you guys are interested to see how this plays out I'll keep the webinar live and then we'll see how things play out as we go along thanks so that was the end of the webinar but right after I left off within the 1 hour 15 minute mark you can see there was a small trade here it's about 3 bars so about 15 minutes on the 5 minute chart 3 bars over here 15 minutes so these were very small trades maybe you could have made $300-400 on it and you would have been out of the trade fairly quickly also but the real opportunity came at the end of the day and as you can see over here so from here onwards we were in a trade for almost 6 or 7 bars so you could have and this was a nice about 4 point move down so this would be about $1000 trade and this would have been a half an hour trade and that was towards the close of the day so that's as far as how yesterday's trading day happened each day is different every day you just have to wait for the right opportunities as I said generally one comes up in the beginning of the day and one comes up in the afternoon session but in between of course you can take some smaller trades but the important thing is bear in mind what the market sentiment is and as you can see over here most of the time it spent was below the zero line and so you were looking for put trades and of course the STX ended about 8 points down so it was a bearish day for sure you can see the previous day ended right here so a bearish day but not a whole lot of opportunity except for the last one could have made about $1000 on a 5 contract position so anyway this is what it looks like if you have any questions you can send me an email at info at optiontiger.com thank you