The Rapid Flow algorithm uses option order flow to predict and signal fast movement in the underlying share price of the said ticker.
How does Rapid Flow trigger?
There are several levels of criteria that have to be passed for a rapid flow signal to trigger a Call or Short idea by analyzing real-time option flow data.
When does Rapid Flow trigger?
Rapid Flow triggers during market hours when a specific option contract is being purchased by multiple people or the same person multiple times within a short period of time at any given time of the day.
How many times does Rapid Flow signal trigger in a day?
Rapid Flow can trigger multiple times in a day but only once per ticker a day at this current time. There are also times when market conditions are not in favor of trading options and subsequently signals will not be generated.
How to trade a Rapid Flow signal?
Rapid Flow is designed to signal a quick day trade idea through option flow as at times it can foreshadow a move up or down in the underlying price.
These moves happen quickly and should be treated as an opportunity to make 10% and walk away from the trade.
When trading rapid flow 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. Though these are worth noting we do not recommend playing the exact same contract as the other trader but better yet 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 Rapid Flow Signal considered a fail?
There are a multitude of ways to consider when a Rapid Flow is a fail, though since the goal is to make 10% 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.
Reminder:
We are always working to improve our signals even if they work 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.
