Signal Strategy · Volatility / Mean-Reversion

Volatility Scalping

An 88-level geometric grid on TQQQ (or any volatile ticker): buy limit orders spaced 1% apart going down, each with its own take-profit sell. It harvests chop and mean-reversion regardless of trend direction: it doesn't predict where price goes, it profits from price moving at all.

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Not investment advice. This page shows the grid's transparent logic and a live paper track record accruing since inception, not a proven or guaranteed return. Trading leveraged ETFs involves substantial risk of loss. run the honest backtest.

The Grid

88 levels, 1% apart

Each level is a resting limit buy 1% below the last, with its own limit sell above it at that level's take-profit target. A level fills when price touches it; the matching sell fires when price recovers to the target, cycling independently of every other level.

Dual-Zone Allocation

78.5% / 21.5% split

Levels 1-30 (the upper zone likely to fill first) get 78.5% of capital, decaying at a steeper rate (0.92 per level) so early levels aren't over-allocated. Levels 31-88 (the deep-drawdown zone) share the remaining 21.5% at a shallower decay (0.98 per level), designed to keep reserve for a genuinely deep drop instead of running out of cash by level 40.

Take-Profit Targets: Wider The Deeper You Go

Levels 1-20

1.6%

Levels 21-40

2.0%

Levels 41-60

2.5%

Levels 61-88

3.0%

Deeper levels only fill after a bigger drop, so they need a bigger bounce to be worth selling into: a flat target across all 88 levels either exits too early on the shallow levels or waits too long on the deep ones.

Design constraints

No regime filter of its own: it stays deployed through drawdowns by design. The 88-level floor (dual-zone allocation, deeper reserve at the bottom) is built so the grid doesn't run out of cash by level 40, not to protect the account in a crash: with no exit, an actual crash still produces a full drawdown while the grid holds through it; in backtesting, worse than Leverage Rotation's own drawdown in 2022. Its real edge is chop and mean-reversion, not crash protection.
Level spacing (1%) and total levels (88) are fixed defaults tuned by backtest: configurable, but changing them changes the risk profile.
Works on any sufficiently volatile ticker (TQQQ by default), not just TQQQ specifically.

Live Paper Record

A $100k paper account has been tracking this rule live since 2026-07-03, marked to market daily, append-only, no re-simulation. Warming up: day 15 / 30. Numbers publish once the record has enough elapsed time to be meaningful.

Approximate: this paper record simulates fills from daily price bars, not the real engine's 60-second intraday loop.

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