Tuesday, January 28, 2020

Jan 28 Trades

Today I closed one trade on AAP based on the modified bollinger bands strategy. In this post I will try to explain the strategy used for this trade, which is 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: AAP Call credit spread

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 13, AAP came up on my scanner by showing 5 closes on the daily candles below the modified bollinger bands and 50 sma. 

On January 24 the trigger below the lowest of these candles triggered so I entered a call 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 1.7 on the CCS and I set a GTC order at 1.2 with our stop loss being double the credit received so in this case 3.4.

Today around 10:31 am AAP gapped down and our profit target was hit and we closed the trade for 25% 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 $50 per contract. 

Total Profit for Jan 28 2020 profits:

Trade 1: $50 per contract

Total: $50 per contract.

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