Wednesday, March 11, 2020

March 10 2020 Trades

Today I closed one trade and it was an SPX 1 DTE trade based on the standard deviation channels. 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 1 DTE trade

On these Trades I look at the standard deviation channels that are built in TOS studies on 5 min candles and when the price action hits the 2 standard deviation I enter a contrarian trade after I get a reversal candle and close the trade at 50% profit and wait for the price action closely in case the standard deviation is hit again. Usually once I get a reversal candle and go on a contrarian trade I either close the trade at 50% profit or when the price hits the median line on the channel. 

So on Tuesday the -2 standard deviation line was  touched at around 11:04 am and at 11:07 am I saw a reversal candle and I opened a Put credit spread 10-15 points away from the standard deviation and we collected on this trade 1.8 and my profit target was 50% profit and my stop loss is 3 times the credit received and in this case it was a total risk. On these 1 DTE trades I do not hold overnight and I close at the end of the day before the close if my profit target is not met. 

Around 2:04 pm the profit target was hit and I closed the trade for profit as well as sending an alert to the whatsapp group in case anyone was following my trades.  

Total Profit for March 10 2020 profits:

Trade 1: $90

Total: $90 per contract.

Total March Trades Profit/Loss: $955 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