SELECTIVE PARTICIPATION
Evaluate markets before committing capital.
EP-ACE™ combines weekly options premium with EP-AIM3™, the streamlined three-rung implementation of the ExitPoints Always-in-the-Market futures hedge.
Each week begins by evaluating a diversified universe of futures markets. Markets exhibiting qualifying volatility conditions are ranked, and a limited number of the strongest candidates are selected for the upcoming campaign.
EP-ACE™ is available through Cannon Trading.
EP-ACE™ is not designed to trade the same markets simply because they are available. The strategy evaluates current volatility relative to each market’s own recent history. This allows very different futures markets to be considered within a common systematic framework.
Only qualifying markets are considered for the week’s trading, with priority given to the strongest candidates. This selection process is intended to focus the strategy on market environments where the characteristics sought by ExitPoints are present.
A diversified universe of futures markets is evaluated and qualifying opportunities are ranked.
An approximately at-the-money call and put are written on each selected market for the weekly campaign.
A corresponding futures position is established and actively managed using EP-AIM3™.
The campaign continues through Friday expiration, with options and remaining futures exposure handled according to the strategy’s established procedures.
EP-AIM3™ is the defining hedge-management component of EP-ACE. It uses a concentrated three-rung price structure to manage the always-in-the-market futures hedge. The futures position remains either long or short and can reverse as predefined market conditions are reached.
Compared with the full EP-AIM11 implementation, EP-AIM3 is designed to create a smoother approach to hedge management with fewer reversal levels. The underlying objective remains the same: systematically manage directional exposure while the weekly options campaign remains active.
Evaluate markets before committing capital.
Use short-duration options as one component of the campaign.
Use EP-AIM3 to actively manage directional exposure with a concentrated three-rung structure.
EP-ACE is available through Cannon Trading. Cannon Trading can provide information regarding account requirements, trading arrangements, and participation in the EP-ACE program.