I am using Price Action. Supports and Resistances. I have discretionary exposure with VWAP but I've never found meaningful tricks around it. But I might toy with it now that I can do amateurish backtesting with tradingview. Never thought about implied vol (SPY IV ? VIX) to design day trading strategies. Now you make me curious
What I do is use an indexation algo. All you need is a normalization script. You normalize the mag7 IVs, sum it up, and divide by 7. Then I take it's negative so that it moves with the index. It's just basic indexation. Just like if you were to you take the top holdings of an etf to create an index out of them. You're trying to get on top of the vol market, so a vol index is the right tool. The VIX is not as good for a number of reasons.
Alright. It's a bit over my head but I see what you mean. This sounds like real trading compared to my PA, Support and Resistance stuffs xD I'll try it out and see what I can do with it. Sounds really interesting. Why the MAG7 and not the SPY's TOP10 ? Thanks for sharing.
It's because the options are being traded on the names with "excess returns" and those are all the high(est) beta names. The S&P 500 includes the financial sector while Nasdaq is the top 100 non-financial. You can look at any sector or index vols, its just that the mag7 are the most influential.
Are you a swing trader or day trader? I'm asking because you're posting daily charts but you said you are doing the Topstep combine. I wouldn't know how you would expect to win that in less then 30 days being a swing trader unless you get a really good setup within 30 days.
I’ll do swing when I’ll have a 9 figures account. Currently day trading. It’s just a chart among others.