What is EP-ACE?
EP-ACE is a four-market futures and options strategy that applies the ExitPoints EP-AIM methodology to MES, MNQ, MCL and ZB.
EP-ACE™
A Weekly Options Strategy with an Active EP-AIM™ Futures Hedge
EP-ACE applies the ExitPoints EP-AIM methodology across four futures markets, combining weekly options writing with systematic futures hedge management.
MES • MNQ • MCL • ZB
Available through Cannon Trading
ONE COORDINATED WEEKLY CAMPAIGN
One Coordinated Weekly Campaign
EP-ACE is managed as a coordinated weekly campaign rather than as a collection of isolated trades. The written options position and the futures hedge are designed to work together throughout the life of the campaign.
01
Weekly Straddle
A call and put are written at the same strike price nearest the current market price.
02
Initial AIM Hedge
EP-AIM establishes the corresponding futures position according to the current AIM direction.
03
Ladder Management
The hedge is managed throughout the campaign using the 11-rung AIM price ladder and stop-and-reverse logic.
04
Expiration
Option expiration, assignment and remaining futures exposure are handled before the next campaign begins.
PREMIUM IS PART OF THE STRATEGY
Premium Is Part of the Strategy — Not the Whole Strategy
The weekly options straddle is only one component of EP-ACE. The EP-AIM futures hedge is actively managed during the campaign and is intended to respond systematically as market direction changes.
The strategy therefore combines premium collection with an active futures management process rather than treating the options position as a stand-alone trade.
The EP-AIM™ Futures Hedge
EP-AIM is designed to maintain a futures position throughout the campaign, either long or short.
If a predefined stop-and-reverse level is reached, the existing hedge is closed and a new futures position is established in the opposite direction.
THE EP-AIM™ FUTURES HEDGE
The EP-AIM™ Futures Hedge
A new managing order is then established according to the AIM ladder. As favorable price movement develops, the ladder logic can ratchet the managing level in the direction of the trend.
THE EP-ACE™ MARKETS
The EP-ACE™ Markets
| Market | Symbol | Role in Portfolio |
|---|---|---|
| Micro E-mini S&P 500 | MES | U.S. equity index |
| Micro E-mini Nasdaq-100 | MNQ | U.S. growth equity index |
| Micro Crude Oil | MCL | Energy |
| 30-Year Treasury Bond | ZB | U.S. interest rates |
AVAILABLE THROUGH CANNON TRADING
Available Through Cannon Trading
EP-ACE is offered through Cannon Trading. Prospective clients can contact Cannon Trading for information about account requirements, availability and implementation of the EP-ACE strategy.
FAQ
Frequently Asked Questions
What role does the futures hedge play?
The futures hedge is actively managed throughout the weekly options campaign and is designed to remain either long or short according to the EP-AIM rules.
How does the AIM Ladder work?
Each market uses an 11-rung ladder of predefined price levels. Those levels are used to manage stop-and-reverse orders and favorable-move ratcheting.
Where is EP-ACE available?
EP-ACE is available through Cannon Trading.