Regime-Based Trading
Trade differently based on whether price is in a positive or negative gamma regime.
The gamma regime determines which strategies are optimal:
- Positive Gamma Regime (price above Flip Point):
Low volatility, mean-reverting. Sell premium, fade extremes, use tight ranges. - Negative Gamma Regime (price below Flip Point):
High volatility, trending. Buy momentum, use wider stops, avoid selling premium. - Regime Transition (price near Flip Point):
Reduce position sizes. Wait for confirmation of the new regime before committing.
See also: Flip Point (F), Stability Point (S), Volatility Point (V)