ExitPoints develops systematic futures and options strategies designed to identify favorable market environments and manage each weekly campaign through a coordinated combination of options premium and an actively managed futures hedge.
Rather than trading the same markets every week, the strategy evaluates a broad universe of futures markets and identifies those exhibiting favorable volatility conditions relative to their own recent history.
The highest-ranked qualifying markets become candidates for the upcoming weekly campaign.
Market conditions change. A market that provides an attractive opportunity one week may not provide the same opportunity the next.
ExitPoints uses a systematic market-selection process to evaluate volatility conditions across a diversified universe of futures markets. Only markets meeting the strategy’s requirements are considered for a new weekly campaign.
Qualifying markets are then ranked, allowing the strategy to concentrate on a limited number of the strongest candidates rather than maintaining permanent exposure to every available market.
An approximately at-the-money call and put are written on the selected futures contract, establishing a weekly straddle scheduled to expire the following Friday.
The options component seeks to capture time premium during the life of the campaign.
A corresponding futures position is managed using ExitPoints’ proprietary EP-AIM™ methodology.
EP-AIM is always in the market—either long or short—and can reverse direction as market conditions change.
The objective is not to eliminate risk, but to systematically manage directional exposure associated with the written options position.
EP-ACE and EP-ATLAS share the same fundamental weekly framework. Their principal difference is the structure used to manage the EP-AIM futures hedge.
Identify qualifying futures markets.
Establish the weekly options position.
Establish the corresponding EP-AIM futures hedge.
Manage directional exposure throughout the campaign.
A streamlined three-rung implementation of the ExitPoints EP-AIM hedge methodology.
The concentrated ladder is designed to provide smoother hedge management with fewer reversal levels while retaining the systematic, always-in-the-market structure of EP-AIM.
Available through Cannon Trading.
Explore EP-ACE →The full eleven-rung implementation of the ExitPoints EP-AIM hedge methodology.
The expanded ladder provides additional levels through which the hedge can respond as price movement develops, creating a more active implementation of the EP-AIM approach.
Available through Rhino Trading.
Explore EP-ATLAS →Markets are evaluated according to current conditions.
Markets must qualify before a new campaign is initiated.
EP-AIM manages the corresponding futures position throughout the campaign.
The objective is a repeatable process that can adapt to changing market environments without requiring predictions about what any individual market will do next.