Friday, February 7, 2020

Feb 7 2020 Trade

Today I closed one trade which was an spx 0 DTE (zero days to expiration) and it was a winner. The  trade  was  SPX 0 DTE trade based the modified bollinger bands strategy  on 5 min candles. In this post I will try to explain the strategy 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: 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 12:50pm 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 12:57pm 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 0.55 on the PCS and I set a GTC order at 0.25 with our stop loss being three times the credit received so in this case 1.65.

Today around 1:03pm 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. 

In less than 7 minutes or so we collected $30. That was a nice win indeed .

Total Profit for Feb 5 2020 profits:

Trade 1: $30

Total: $30 per contract.

Total February Trades Profit/Loss: $112 per contract.

Please note that I am sharing per contract and when I send my alert to the free whatsapp group I send 1 contract because each person has a different risk tolerance and for easy math for example if it is 30$ per contract then it is $300 per 10 contract. this way a small account user or a big account user can decide if they want to go with one or more than 1 contract. I usually trade sometimes 3 and sometimes 5 contracts but I like to share 1 in case there are people that have small accounts and want to grow it 1 contract at a time. 

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