Bootcamp Lesson 5 GPT

Question 1

What might indicate that price is about to dip without having to actively watch the charts?

Answer 1

Velocity checks.

Question 2

What is the significance of a bullish trigger cross in the context of this trading method?

Answer 2

It indicates a potential opportunity to take a bullish trade or position.

Question 3

What is the benefit of combining trigger crosses with velocity tags?

Answer 3

It allows for more informed decisions on when to enter and exit trades.

Question 4

If you see that hourly, daily velocity put in a high and the price is increasing, but then the price begins to decline, what might this indicate?

Answer 4

It might indicate that the price will come back down to the daily trigger.

Question 5

Do you always have to wait for a bearish trigger cross to exit a bullish position?

Answer 5

No, one can exit using bearish divergence before the bearish trigger cross.

Question 6

What does bearish divergence tell traders?

Answer 6

It indicates that the price is likely to come back down and test the trigger.

Question 7

How can a team of experienced traders benefit a trading strategy?

Answer 7

They can help identify triggers across the market, leading to more potential plays.

Question 8

In the context of weekly predictions, what should one look at to determine if an ‘airplane’ is going to form?

Answer 8

The weekly velocity.

Question 9

If there’s one bearish divergence on the weekly velocity, what does it signify?

Answer 9

There’s a 33% chance that if price and the hourly trigger move below the daily trigger, the price might come back down to the week.

Question 10

What’s the advantage of selling options compared to buying options?

Answer 10

With selling, you make money if the price goes up, down, or stays sideways. With buying, you only make money if you predict the direction correctly.

Question 11

When selling options, in which situation do you lose money?

Answer 11

You lose money if the price goes in the opposite direction of your trade in the correct amount of time without theta diminishing the contract value.

Question 12

How does theta impact options?

Answer 12

Theta represents the rate of decline in the value of an option due to the passage of time. It can eat away at the contracts you’ve sold, making them cheaper to buy back.

Question 13

How does one strategy propose dealing with an upward price trend?

Answer 13

Once the hourly trigger breaks above the weekly trigger, you can sell puts at a lower strike price, expecting them to expire worthless and keep the entire premium.

Question 14

In the scenario where the hourly trigger crosses above the daily trigger after a bearish cross, what can we anticipate?

Answer 14

The price might come down initially but is eventually expected to move up without getting close to the weekly trigger.

Question 15

According to the given trading method, what is a more consistent way to generate passive income?

Answer 15

Selling contracts, as the triggers make the prediction easier.

Question 16

Even with a bullish cross, what can traders do instead of buying calls?

Answer 16

They can sell call spreads.

Question 17

Even if a bullish cross results in an ‘airplane’ and the price dips, what happens to the puts that you sold?

Answer 17

They would lose value due to theta, so you could profit once you get your strategy right.

Question 18

What is the primary difference between buying calls or puts and selling them?

Answer 18

When buying, you make money if you predict the price direction correctly. When selling, you make money if the price goes in your predicted direction, remains stagnant, or even if it goes slightly against your prediction due to theta decay.

Question 19

In the context of the content, what’s considered a better strategy: buying options or selling options?

Answer 19

Selling options is considered a better strategy for consistent passive income.

Question 20

If you wanted to capitalize on the upside move of Tesla as described in the content, what could have been a strategy?

Answer 20

Selling $185 puts when the hourly trigger broke above the weekly trigger, expecting them to expire worthless.

Question 21

What’s the consequence of selling puts when the hourly trigger breaks above the weekly trigger?

Answer 21

The entire premium can be kept, and the trade becomes almost stress-free.

Question 22

Why might selling options be seen as less risky than buying options based on the discussion?

Answer 22

Because with selling options, traders benefit from time decay and can profit even if the market doesn’t move in their favor as long as it doesn’t move drastically against them.

Question 23

In the context of this method, when might be a good time to buy back sold contracts?

Answer 23

If the price breaks back below the weekly trigger.

Question 24

What is the relevance of checking ‘velocity’ in trading strategies based on the discussion?

Answer 24

Velocity can be used to identify when to take trades without actively managing them.

Question 25

If a bullish trigger cross is identified and subsequent highs are seen in Tesla’s price, what might a trader infer?

Answer 25

The price will likely come back down to the daily trigger.

Question 26

How can one use ‘trigger crosses’ and ‘velocity tags’ in tandem according to the content?

Answer 26

When taking a position, you initiate on a trigger cross and can exit using bearish divergence without waiting for the bearish trigger cross.

Question 27

What could a ‘reset divergence’ in relation to velocity indicate?

Answer 27

Once the price hits the daily trigger, any previous bearish divergence is reset and no longer applicable.

Question 28

If the price hits the daily trigger after bearish divergence, and then makes a new high, is it considered another bearish divergence?

Answer 28

No, because the divergence has already reset after hitting the daily trigger.

Question 29

How can a community of experienced traders using this system benefit everyone?

Answer 29

With many people understanding the system and looking at triggers, more profitable plays can be identified than by an individual alone.

Question 30

In the context of the Tesla example, how can you anticipate whether an ‘airplane’ will form or not?

Answer 30

By looking at the weekly velocity.

Question 31

If there’s one bearish divergence on the weekly velocity, what are the chances the price might come back down to the weekly trigger?

Answer 31

33% chance.

Question 32

When there’s one bearish divergence on the weekly velocity, what are the chances that the ‘airplane’ will form?

Answer 32

66% chance.

Question 33

Under what scenario would selling ‘cash secured puts’ and buying them back be a solid bet, based on the content?

Answer 33

When there’s a bullish cross, but also if and only if the hourly trigger crosses above the daily trigger.

Question 34

If a bearish cross happens and the price comes down, what pattern do traders expect afterwards?

Answer 34

A Y-pattern where the price eventually rises without getting close to the weekly trigger.

Question 35

In the context of this strategy, when is it not necessary to buy calls or puts?

Answer 35

When you can be selling them, which makes money even when the price remains stagnant due to theta decay.

Question 36

How does buying calls or puts differ from selling them in terms of profitability direction?

Answer 36

Buying requires the correct price direction to profit, while selling allows profit even if the price remains stagnant or goes slightly against your prediction.

Question 37

What is the risk associated with selling options based on the transcript?

Answer 37

Losses can occur if the price moves substantially in the opposite direction of your trade within a specific timeframe without theta decay benefiting you.

Question 38

How does the transcript recommend reacting to flashy gains seen on platforms like Twitter or Discord?

Answer 38

Remain cautious and consider that many losses might also be occurring. It’s risky to chase such gains.

Question 39

Which option strategy was recommended for Tesla when the hourly trigger broke above the weekly trigger?

Answer 39

Selling $185 puts.

Question 40

How do the ‘triggers’ make selling contracts a preferable option for passive income generation?

Answer 40

They simplify the prediction process, making trades almost stress-free.

Question 41

If a bullish cross is identified and the hourly trigger crosses below the daily trigger, which option strategy might be preferable?

Answer 41

Selling a call spread.

Question 42

What is the benefit of selling a call spread when a bearish cross is identified, even if the price rises afterwards?

Answer 42

The theta decay will make the contracts cheaper to buy back, securing a profit.

Question 43

If you identify a bullish cross and subsequently an ‘airplane’, and you sell puts that later decrease in value due to theta decay, what does that imply for your strategy?

Answer 43

Once you get the strategy right, you can profit more consistently.

Question 44

Based on the transcript, how can traders use the ‘airplane’ setup and theta decay to their advantage when selling puts?

Answer 44

Even if the price dips after the ‘airplane’, the puts sold will lose value, allowing traders to buy them back at a profit.

Question 45

According to the discussion, what makes selling options a potentially safer choice over buying options?

Answer 45

Selling options allows traders to profit from time decay and slight mispredictions, whereas buying options requires a correct directional prediction for profit.

Question 46

What kind of trade might be considered almost stress-free when the hourly trigger breaks above the weekly trigger in the case of Tesla?

Answer 46

Selling $185 puts, expecting them to expire worthless.

Question 47

How does the transcript suggest transitioning from traditional trading strategies?

Answer 47

By focusing more on selling contracts for consistent passive income.

Question 48

Based on the content, how does one’s perception of ‘flashy gains’ on social media platforms impact their trading approach?

Answer 48

Chasing such gains can be risky as it doesn’t account for potential losses that those traders might be incurring.

Question 49

What happens to the puts that you sell if there’s a bullish cross and you anticipate an ‘airplane’ setup, but the price dips?

Answer 49

The puts will lose value due to theta decay, allowing for potential profit when bought back.

Question 50

Why might selling options be more consistent than buying options, as suggested in the transcript?

Answer 50

Because selling options provides a wider margin for error due to time decay, allowing traders to profit even if their directional prediction is slightly off.

Question 51

If a bullish cross is identified but the daily trigger starts declining rapidly, what might be a potential strategy?

Answer 51

Wait for a clear signal, as the declining daily trigger can indicate potential price weakness.

Question 52

Based on the discussion, how often should traders reevaluate their trades when using these triggers?

Answer 52

Traders should regularly monitor the triggers, especially on higher time frames, to ensure their trades align with the market’s direction.

Question 53

What does a sudden spike in the hourly trigger without a similar move in the daily or weekly triggers suggest?

Answer 53

This might indicate a short-term price movement that could be reverted quickly. Caution is advised.

Question 54

When the weekly trigger is consistently rising but the daily and hourly triggers show bearish divergences, what can a trader infer?

Answer 54

There might be short-term pullbacks or price declines, but the overall longer-term trend remains bullish.

Question 55

How can traders use divergences between different time-frame triggers to their advantage?

Answer 55

Divergences can provide early warning signs of potential price reversals or continuations. Using them can help in timing entries and exits better.

Question 56

In the context of the transcript, what can two consecutive bullish crosses in the hourly trigger with a declining daily trigger suggest?

Answer 56

It might be a sign of a weakening bullish momentum and potential reversal.

Question 57

Is the daily trigger always a more reliable indicator than the hourly trigger?

Answer 57

Not necessarily. While the daily trigger provides a longer-term view, the hourly can offer insights into more immediate price actions.

Question 58

What’s the importance of aligning triggers across multiple timeframes according to the content?

Answer 58

Aligned triggers can provide stronger confirmation of a potential price move, increasing the probability of a successful trade.

Question 59

When you see a bullish orientation in all triggers but experience a sharp dip, and there’s no sign of an ‘airplane’, what might be a good trading strategy?

Answer 59

Caution is advised. Waiting for a clearer signal or looking for a bearish orientation might be a better move.

Question 60

Given the ‘airplane’ setup, how long should one anticipate the dip to last before a rebound?

Answer 60

The ‘airplane’ setup doesn’t specify an exact duration for the dip. It’s essential to monitor price action and other indicators for a better idea.

Question 61

What’s the main advantage of the ‘airplane’ setup according to the discussion?

Answer 61

The ‘airplane’ setup provides a potential buy-the-dip opportunity with a higher probability of a bullish continuation.

Question 62

How do triggers help in making sense of complex price actions in the market?

Answer 62

Triggers simplify the prediction process by providing clear signals based on price action and momentum.

Question 63

If all triggers show a bearish orientation but there’s a sudden spike in price, how should a trader interpret this?

Answer 63

Such spikes could be temporary. If the triggers remain bearish, this could be a potential sell-the-rip opportunity.

Question 64

Why is it essential to factor in other market influences beyond triggers?

Answer 64

While triggers provide clear signals, considering other market factors ensures a holistic understanding and better decision-making.

Question 65

Can a trigger-based system guarantee profitability?

Answer 65

No system can guarantee profitability. While triggers can provide clearer signals, traders must always account for potential risks.

Question 66

When is the best time to consider an exit strategy using the discussed trigger system?

Answer 66

When there’s a significant divergence between the chosen timeframe’s trigger and price action, indicating a potential reversal.

Question 67

How should a trader manage their portfolio when the triggers on multiple assets align in a bullish orientation?

Answer 67

Diversifying and allocating capital judiciously can help manage risks while taking advantage of the bullish momentum.

Question 68

In the context of the ‘airplane’ setup, what might be the role of external news events?

Answer 68

External news events can either accentuate or disrupt the ‘airplane’ setup. It’s crucial to stay updated and adjust the strategy accordingly.

Question 69

If a trader identifies a bearish cross but the price continues to rise with strong momentum, what might have gone wrong?

Answer 69

The market might be reacting to external influences, or the trigger system might be experiencing a false signal. It’s essential to reevaluate and adjust the strategy.

Question 70

When might it be essential to go against the trigger indications?

Answer 70

In situations with significant external news events or unexpected market reactions, it might be wise to reassess and not solely rely on trigger indications.