The Nimbus Flow algorithm uses option order flow to predict movement in the underlying share price of the said ticker.
How does a Nimbus signal trigger?
There are multiple parameters that are required to be met in order for an unusual signal to trigger but most importantly these signals are multiple orders hitting the same contract. These orders are 100k-999k in size and aggressive in nature.
When does a Nimbus signal trigger?
Nimbus triggers during market hours when multiple large option orders have been placed and processed by another trader/s or institution.
How many times does a Nimbus signal trigger in a day?
Nimbus can trigger once or a hundred times a single day. There are phases when market conditions are not in favor of trading options and subsequently signals will not be generated. There are phases when the market conditions are extremely favorable for trading options and thus we will see more orders being placed.
How do I trade a Nimbus signal?
All Nimbus signals are different from one another. Some orders may see returns the same day it’s processed or it may take up until expiration. The purpose of the Nimbus algorithm is to detect orders that are placed with the intent of price action to follow whether that be an institution breaking up a large order into multiples to hide their position or a trader/s placing multiple orders due to price action or an impending catalyst.
We have found that these signaled moves happen immediately and even the following day.
When trading Nimbus signals we suggest never using 10% or more of your portfolio. We also always recommend you then use a fraction of that 10% on your initial investment to allow room to average down if necessary.
Outliers do occur when signals are generated on an option contract that may be significantly far out of the money or even tied to spreads, iron condors, and even married puts. Though these are worth noting we do not recommend playing the exact same contract as the other trader but better yet taking a much safer contract that has time on its side and is ITM which actually holds intrinsic value.
Since these are merely signals happening in the market in real-time we suggest doing your own due diligence before taking these trade ideas as these signals are picking up human and AI orders that both can be wrong at times.
When is a Nimbus signal considered a failure?
There are a multitude of ways to consider when a Nimbus Signal is a fail, though since the goal is to make 10-20% per signal the plan should be to lose no more than 10% on any given trade either. Ultimately your stop-loss comes down to your technical levels and personal risk levels as well.
It is worth noting that we’ve seen these signals wait until the last couple of days until expiration to reach the profit-taking goals.
We are always working to improve our signals even if they are great; market conditions are constantly changing on a weekly basis. Though every ticker with options can be registered it does not mean they are the best trade to take at that moment for a multitude of reasons i.g. Going against market conditions and sentiment.