Write the Straddle
A call and put are written at the same strike price near the current market price.
FUTURES
Systematic Futures Strategies
ExitPoints develops rules-based futures and options strategies using its proprietary EP-AIM™ methodology.
EP-AIM combines weekly options writing with an always-in-the-market futures hedge managed through predefined price levels and stop-and-reverse rules.
THE EP-AIM™ STRATEGY
The EP-AIM™ Strategy
EP-AIM combines a weekly written options straddle with an actively managed futures hedge. The options position is established at the beginning of the campaign, while the futures position is continuously managed according to the current AIM direction and the strategy’s 11-rung price ladder.
The objective is not to predict every market move. The objective is to apply a consistent process for managing directional exposure while the written options position is active.
Establish the Futures Hedge
EP-AIM establishes a long or short futures position based on the current AIM direction.
Manage with the AIM Ladder
An 11-rung price ladder provides the predefined levels used to manage the hedge.
Stop and Reverse
When the appropriate level is reached, the existing futures position is closed and the opposite position is established.
Ratchet Favorable Moves
As a trend develops, ladder logic can advance the managing level in the direction of the move.
Complete the Weekly Campaign
At Friday expiration, option assignment and any remaining futures exposure are handled before the next campaign begins.
TWO EP-AIM™ PORTFOLIOS
Two EP-AIM™ Portfolios
EP-ACE™
MES • MNQ • MCL • ZB
Equity indexes • Energy • Interest rates
Available through Cannon Trading
Explore EP-ACE →EP-ATLAS™
MES • ZB • ZC • 6E
Equity index • Interest rates • Agriculture • Currency
Available through Rhino Trading
Explore EP-ATLAS →WHY TWO PORTFOLIOS?
Why Two Portfolios?
EP-ACE and EP-ATLAS use the same underlying EP-AIM methodology but apply it to different groups of futures markets.
The portfolio construction creates different market exposure while preserving the same core weekly options and futures hedge process.
EP-ACE™
MES • MNQ • MCL • ZB
Equity indexes • Energy • Interest rates
EP-ATLAS™
MES • ZB • ZC • 6E
Equity index • Interest rates • Agriculture • Currency