TRIPLE WITCHING SYSTEM

TRIPLE WITCHING SYSTEM - TIP 14

Mark Austin Trading

UK's Premier Online FTSE Subscription

Dear Trader,
Tomorrow (Friday) is triple witching and the below strategy can be considered. Triple witching is when the option and futures market expire at the same time. The expiry creates a sudden rush of volatility. Its this expected volatility that we use for our edge.

TRIPLE WITCHING SYSTEM

Between 10.10 -10.20am (tomorrow) futures and options will expire at the same time on the FTSE 100. In most cases this will create short term volatility and you will see large price spikes on the index.
The system for this is based around the tunnel concept and we are using the expected volatility to our advantage.
If you use IG Index go to binary indices - FTSE 12pm and then 1 touches.
This is the chosen instrument for this system. I use 12pm expiry trades as the volatility is before 12pm and they are far cheaper than the daily one touches.
Once found you want to scan the ranges and locate prices under 8 or even below. You will need to buy a one touch above and below the market level at that time. In essence a hedged trade. The basic principle is that when expiry occurs one of the trades will move into profit as a result of short term volatility. Once you take profits it should cancel out the 8 point loss (or less) on the other trade and leave you with an overall profit.
Example:
Current Market 5727 (OUT OF DATE NOW)
Current prices:
FTSE 12pm one touch 5780 - current price 8
FTSE 12pm one touch 5660 - current price 8
Of course you can take higher risk depending on your risk tolerance.
Profit taking is down to the trader but volatility usually subsides by 10.25am.
Ideally place the trades before 10am.
Selling tunnels at 95 just before 10am is also an option on these events as key moves often arise after triple witching and a tunnel has all day to capture the action. Remember you profit whether the market goes up or down with tunnels.
For experienced traders please also note the average move created from expiry is 20 points to either the upside or the downside. So if we see more than 20 points experienced traders can look to sell or buy (fading the move) against the price spike if it is exaggerated (i/e over 20 points in 5 minutes). You usually see some of the move retrace as the market adjusts back.
If this is your first time keep your leverage low and remember there is no such thing as a 100% trade set up.
Subscribers will get updated on which strategy is preferred to take advantage of the event tomorrow, favourable one touch prices and also whether its preferred to sell the expiry spike to the upside or buy the downside spike when using a spread bet.
For more information like this and professional guidance on how to trade the FTSE profitably then sign up to my service today at half price.
https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=S5BP5G9HQPX2C
Happy Trading!
Mark Austin
mark@markaustintrading.com
www.markaustintrading.com

10 Ways Home Traders Can Be More Profitable Than Professionals. Learn More