0-DTE Podcast Episode 100
By Ernie Varitimos
October 12, 2022
0:00 / 33:05
0-DTE Podcast Episode 100

3, 2, 1. Welcome Friends to Zero Days To Expiration. That's right, Zero Days to Expiration. This is episode number 100. Can you imagine that 100 episodes? Well, this is gonna be a doozy.

What I wanted to do was talk about how you actually profit using a zero DTE strategy in a bear market. Now, in order to do this, I have to give you a little bit of context. So I'm going to tell you how we did last year in a bull market, how we did this year in a bear market, and what is it that makes this strategy different from all others?

And today was a really good illustration of why this strategy is different and why this strategy makes money while other strategies would've lost their shirt in this market. Today was a crazy day.

It was what some people might call a, a distribution day, maybe a trending day, and then a complete reversal. And so I don't know what It turned into a variation, abnormal distribution day or something like that. That's in the market profile parlance. So this being the hundredth show, let's talk a little bit about where we were and where we've come.

Today we have somewhere around 750, maybe 800 members in our trade room. Uh, they are active. We have hundreds and hundreds of messages every day. They are all supporting one another, all coming up with their own variation of this strategy.

Now, we started this service, oh, about a year and six months ago, about a year and a half in the first nine months of the service, I wanted to show how you could take a small account using 0-DTE and grow it, and I did in about nine months. We took a very small account and tripled it. But that was in a very different market. That was in a bull market.

One that was just fed induced just fed. When I say fed, I don't mean like eat. I mean the Federal Reserve just pumped money into that market or pumped that market up, and it just went bonkers. And so it seemed almost surreal how well this strategy actually worked.

But we weren't under any delusion that was something that was going to continue under all market conditions. So then the market turned around obviously in the beginning of this year, and we felt it in January because we tried some of the strategies that we had come up with, uh, variations of them that were getting a little bit too aggressive, and we got bit by that.

And so that kind of gave us a, a pause and said, Okay, now we're in a beer market. This is a different. Let's go back to our roots and continue with that strategy. And we did, and we've done spectacularly well in a bear market as well. So that is proof positive. First of all, that this version or our version, our unique way of trading zero DTE works in both bull markets and bear markets, as well as sideways markets and bear market rallies.

Now, bear market rallies, I would say that those are the toughest markets to trade. So, how is it that this strategy, this 0-DTE, or zero days expiration strategy is different from all the others?