Wednesday, January 22, 2020

Jan 22 Trades

Jan 22 Trades


Today I closed 4 trades and all were winners. The first trade  was a weekly 7 DTE SPX trade based on back testing and probabilities. The second trade was an SMH trade based on the modified bollinger bands strategy. The third trade was an AAPL trade that is based on back testing and probabilities. The fourth was an AMZN trade also based on backtesting and probabilities.

Trade 1

The 7 DTE SPX trade is based on a backtesting for the last 5 years that is based on of the simple moving average when the 8 SMA is above the 21 SMA and the SPX close above 21 SMA we open a put credit spread 70% OTM and the results are as follows:



As you can see for the last 10 years the strategy gave out 154 trades, 131 were the winners. Also this strategy only opens trades every Monday, Wednesday, and Friday in sequential order so when one trade closes the next one will open on the next trading day and it depends whether that day is Monday, Wednesday, or Friday with win rate for the last 5 years of 85%. 

Last Friday January 17 2020, I opened an spx 7 DTE put credit spread and I alerted it on my Whatsapp channel


Today we hit our profit target and we closed it for a profit of $60 per contract



Trade 2

For this trade 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. 

On January 13 SMH had 5 candles closing above the modified bollinger bands and on January 14 the trigger above the highest of these candles triggered so I entered a put credit spread and send out an alert on the whatsapp group.


On these kind of trades I like to take profits at 25% and go on to the next trade so I set a GTC order at 0.5 where our stop loss is double the credit received so in this case 1.56

Today our profit target was hit and we closed the trade for 25% profit and we send the alert to the whatsapp group that we closed it in case anyone was following it thus making a profit of $28 profit per contract. 



Trade 3

The AAPL 30 DTE trade is based on a backtesting for the last 5 years that is based on the technical of the simple moving averages when the 8 SMA is above the 21 SMA and the AAPL close above the 21 SMA. When these conditions are met we open a put credit spread 70% OTM and the results are as follows:



As you can see for the last 5 years the strategy gave out 74 trades, 67 were the winners. Also this strategy only opens trades in sequential order so when one trade closes the next one will open on the next trading day with win rate for the last 5 years of 91% that with taking profits at 50%. 

January 9 2020, we opened an AAPL 30 DTE put credit spread with 70% OTM and I alerted it on my Whatsapp channel

Today we closed the trade for 50% profit. 




Trade 4

The AMZN 30 DTE trade is based on a backtesting for the last 5 years that is based on the technical of the simple moving averages when the 8 SMA is above the 21 SMA and the AMZN close above the 21 SMA. When these conditions are met we open a put credit spread 70% OTM and the results are as follows:


As you can see for the last 5 years the strategy gave out 48 trades, 42 were the winners. Also this strategy only opens trades in sequential order so when one trade closes the next one will open on the next trading day with win rate for the last 5 years of 88%. 

Dec 27 2019, we opened an AMZN 30 DTE put credit spread with 70% OTM and I alerted it on my Whatsapp channel

The backtest called to close the trade at 90% profit and I thought I had it to be closed at 0.15 but for some reason or another it looks like I placed the good to cancel order for 0.3 instead of 0.15 and it closed today for 65% profit instead of the 90%. In all cases a win is a win and I will take that but i will keep it until 90% profit next time since the backtest supports it. 


Total Profit for Jan 22 2020 profits:

Trade 1: $60
Trade 2: $28
Trade 3: $35
Trade 4: $55

Total: $178

Hope this blog helps you find profitable strategies and in case you want to follow my trades please join the whatsapp group