One trading strategy I've been using for a few years now is a delta neutral program using exchange traded funds (ETFs.)

First, one chooses a pair of securities that trade inverse to each other. An example is pairing the QLD (double long QQQ) with the QID (double short QQQ.) It's important that both securities trade as mathematically opposite as possible.

The idea is that once there is enough market movement - in either direction - an adjustment is made to balance your position back to delta neutral. Notice this is based on the MARKET VALUE of your positions, not necessarily the nominal price. The price itself is arbitrary, because these ETFs are designed to reflect a percentage daily change based on the change in the underlying.

A delta neutral adjustment is made by either 1) exiting a portion the position in the positive direction of the move, 2) entering an incremental position in the opposite direction or the move or 3) some combination of 1 and 2.

It's important to balance your moves between exiting the profitable side and entering the negative side. If you always just exit the profitable side, you will find yourself running out of powder. If you always just enter the negative side, your capital constraints will ultimately come into play.

I could go into alot more detail, but for now I'll leave it at that and if any other forum members are interested, I'll be glad to share more info.

Good trades to all.