This video is of special note, as we demonstrate a cross-validation between EPIC’s algorithmic model and conventional charting to confirm and enter a short position. We also demonstrate an ‘inverse hedging’ in price action between continuous Oil Futures and the S&P500, using the FREEDOM algorithmic model (represented on a $SPY chart).
The following video is worth paying attention to. There are several worthwhile background points before getting into the video:
- Using EPIC’s algorithmic model, I was able to cross-validate its results against conventional charting before entering into a short.
Reversal began at intersection between apex of the quadrant and major algorithmic resistance.
Conventional charting uncovers pivot off resistance, culminating into a mean reversion.
- Once short oil, there was demonstrable contrary price action on our algorithmic model for $SPY. This allowed me to use an effect that we refer to as inverse hedging, whereby a dump in oil was correlated with bullish price action in the S&P500. It was here that I entered a long position in $SPY, at the same time as going short on oil.
- With crowd-sourced data from our trading room, a consolidated mean reversion at new lows on E-mini futures (ES_F) was also caught, lining up with a correlated, conventional charting result on $USOIL (WTI).
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