Tuesday, January 21, 2020

January 21 2020 SPX 0 DTE Trade

Jan 21 SPX 0 DTE Trade


I got in on an spx 0 DTE trade today using my momentum strategy at around 12:53 pm 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. 

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 12:40pm 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 3319.09 (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 10 min after I set the trigger, spx traded at the trigger price and I opened a call credit spread. 


and 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 an hour later, I hit my profit target and I was able to close the trade for $30 profit per contract.  

The momentum strategy counts on burst in momentum and thus I take profit at 50% from the sell price I got it. 

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