Wednesday, January 22, 2020

Jan 22 SPX 0 DTE Trade

Jan 22 SPX 0 DTE Trade

I got in on an spx 0 DTE trade today using my momentum strategy at around 11:27am central time. I use the same strategy that I use on the daily candles for stocks and etfs but here I focus on spx 5 min candles. As I share my win trades I will also share my loosing trades so that you can see like any trader I have wins and losses as well. 

First I have a modified bollinger band of 0.382 standard deviation and 50 SMA on the chart and I wait for 5 candles above or below the bands. When that happens I place a trigger above the highest or the below the lowest of the candles based if these candles are above or below the bands respectively. 

In today's case the 5 candles came below the modified bollinger bands as you can see in the chart below. The 5th candle was at 11:20am that closed below the modified bands and 50 SMA. 

When the 5th candle is formed I sent an alert on the whats app channel to our members saying that I am waiting for the 5th candle to close to set a trigger. this will let them know that an spx 0 DTE trade might come up. 

So I placed a trigger at 3324.9 (which is one cent below the low of the 5th candle) and alerted the whatsapp group on what I am looking for to do on the 0 DTE.

Almost 2 min after I set the trigger, spx traded at the trigger price and I opened a call credit spread. I sent the alert to the whatsapp group with the price to set for the good to cancel order to close the trade as well as the stop loss I am placing which is 2.5 the credit received. 

Almost 45 min later, the trade hit my stop loss and I was able to close the trade for $2.3 thus resulting in $140 loss per contract.  Controlling the loosing trades is essential to be able to trade the next day even though this trade might end up a winner but I follow a plan and try to execute it without putting what I think or what I hope might happen. 

If you would like to join the whatsapp group just click this link to be alerted on my trades based on this strategy.