Monday, January 27, 2020

Jan 27 Trades

Jan 27 Trades


Today I closed four trades including an spx 0 DTE (zero days to expiration) 2 winners and 2 loosers. The first trade  was  SPX 7 DTE trade based on backtesting and probabilities., the second one was a spx 0 DTE trade also based on the same modified bollinger bands strategy but on 5 min candles, and the third and fourth trade were on HON and NKE trades based on the same modified bollinger bands strategy but on daily candle. In this post I will try to explain the strategies I used for these trades, and the same strategy that I use to share my trades on the free whatsapp group that I have which is open to anyone who would like to join.

Trade 1: 7 DTE SPX PCS

The SPX 7 DTE  trade is based on a backtesting for the last 5 years that is based on  the simple moving average. The strategy is to open a 7 DTE  SPX Call Credit Spread trade if SPX cross down the 10 SMA and the 8 SMA is above the 21 SMA and spx close above the 21 SMA. The baktest is sequential so we open a new 7 DTE trade the next trading day when the last one is closed on Monday, or Wednesday or Friday. The backtest takes profit at 50% and stop loss of 370%. This condition for the last 5 years showed 81% win rate with 32 trades taken, 26 trades were winners. 

Below backtest results 



On Friday January 24, SPX crossed down the 8 SMA while the 8 SMA is above the 21 and SPX closed above the 21 SMA. so we entered a 7 DTE call credit spread and we collected 1.8 for it.

Today January 27 SPX gapped down and at the open the spread was trading at 0.5 and I decided to close it since it is above our profit target of 50% and I sent out an alert on the whatsapp group and we closed the trade at 0.5 and collected $130 per contract.




Trade 2: SPX 0 DTE trade

In short for the modified bollinger bands strategy, I scan spx on a 5 min candles for 5 closes below or above a modified bollinger band of standard deviation of 0.382 a well as the 50 SMA. 

At 2:10pm central time, SPX 5 min candles came up on my chart by showing 5 closes on the 5 min candles below the modified bollinger bands and 50 sma. 

So I placed the trigger below the lowest of these candles and at 2:15pm the trigger triggered so I entered a call credit spread  and I sent out an alert on the whatsapp group.

On these kind of trades on the 0 DTE spx trades I like to take profits at 50% and go on to the next trade so when we entered we collected 0.6 on the CCS and I set a GTC order at 0.3 with our stop loss being three times the credit received so in this case 1.8.

Today around 2:38pm SPX  went down  in price and our profit target was hit and we closed the trade for 50% profit and we sent the alert to the whatsapp group that we closed it in case anyone was following it thus making a profit of $30 profit per contract. 




Trade 3: HON trade

In short for the modified bollinger bands strategy, I scan everyday the stocks for 5 closes below or above a modified bollinger band of standard deviation of 0.382 a well as the 50 SMA. 

On January 12, HON came up on my scanner by showing 5 closes on the daily candles above the modified bollinger bands and 50 sma. 

On January 13 the trigger above the highest of these candles triggered so I entered a put credit spread and I sent 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 when we entered we collected 0.64 on the PCS and I set a GTC order at 0.4 with our stop loss being double the credit received so in this case 1.28.

Today at the open HON gapped down and our stop loss  was hit and we closed the trade for 100% Loss since the price of the spread is double the credit received and I sent the alert to the whatsapp group that we closed it in case anyone was following it thus making a loss of $64 per contract. 

Trade 4: NKE trade

In short for the modified bollinger bands strategy, I scan everyday the stocks for 5 closes below or above a modified bollinger band of standard deviation of 0.382 a well as the 50 SMA. 

On January 20, NKE came up on my scanner by showing 5 closes on the daily candles above the modified bollinger bands and 50 sma. 

On January 21 the trigger above the highest of these candles triggered so I entered a put credit spread and I sent 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 when we entered we collected 0.53 on the PCS and I set a GTC order at 0.35 with our stop loss being double the credit received so in this case 1.06.

Today at the open NKE gapped down and our stop loss  was hit and we closed the trade for 154% Loss since the price of the spread is way more than the double of the credit received and I sent the alert to the whatsapp group that we closed it in case anyone was following it thus making a loss of $82 per contract. 



Total Profit for Jan 27 2020 profits:

Trade 1: $130
Trade 2: $30
Trade 3: -$64
Trade 4: -$82


Total: $14 per contract.

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