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We’ll cover what every trader NEEDS to know — losing money is virtually guaranteed if you don’t — understanding your own trades, options strategy and if the market is about to pull back after the recent run [tap to join us for Closing Playbook]!
Let me tell you something that’s going to change how you think about any trading system you’re using. I don’t care if you’re trading Maverick Pro, Gamma Pockets or anything else — if you’re not layering in these two fundamental edges, you’re leaving serious money on the table.
Maverick Pro already has a strong structural edge. It reads into the options markets to see what market makers expect based on implied volatility. Since market makers don’t care about direction, we add momentum and trend to figure out whether that expected move is more likely to go up or down.
That alone is powerful.
But there are two edges you can add that make any system better — any system in existence.
The Edge That Separates Winners from Everyone Else
The first one is trend. You always want to trade in the direction of a strong, clearly defined trend because it stacks probabilities in your favor. If a chart is smooth and directional, it’s a better candidate than something choppy.
The second edge is regime — the volatility and directional state of the overall market. If the S&P 500 is pushing higher, you generally don’t want to be short unless the individual stock is severely underperforming.
Regime comes down to where price sits relative to the major moving averages and what volatility levels look like.
And here’s the part most traders overlook: None of this works unless you manage your entire portfolio like an actual portfolio manager. Every trader is managing multiple positions whether they realize it or not, and your overall exposure determines whether your system performs or not.
Edges only work when the portfolio they’re applied to is controlled, balanced and intentional.
One of the simplest ways to stay aligned with the market is to use a personal scorecard. Rate the environment from -5 to +5 based on trend, momentum and the position of major moving averages.
When the moving averages line up cleanly — what I call a perfect rainbow — you know the trend is well-structured. Pair that with a quick volatility check: Are you below 12, in the 13 to 15 zone, in the 17 to 20 range or above 20 for the VIX?
Your score determines your positioning. If you’re slightly bullish, your portfolio should be slightly net long — something like three longs and two shorts at most. Too many traders have 20 random positions, all bullish, in a market that only justifies a mild upward bias.
That’s how accounts get crushed.
Keep your position count tight. Never hold more than 10 trades, and it’s even better to stay around five or six. If you’re stuck with too many positions, stop opening new trades and let current positions close out until you’re back to a manageable range.
And remember, timing matters. The best entries usually appear in the afternoon when the market settles and institutional money steps in. That’s when your signals have the highest chance of following through.
If you’re trading a small account, allocation becomes even more important. You may need to take on higher risk to grow, but that makes disciplined position count and portfolio balance absolutely essential.
Add trend, regime and true portfolio management to any system you trade — then watch your results transform.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Have You Heard About This Loophole In The Options Market?
I recently shared a “mistake” in the options market…
It gives us an insane edge in finding stocks about to break out!
