Thursday, March 12, 2020

March 11 2020 Trades

Today I closed 2 trades and they were spx 0 DTE (zero days to expiration) trades. One SPX 0 DTE trade was based on the modified bollinger bands strategy  on 5 min candles and one trade on spx 0 DTE was based on std 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 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 12:15 pm 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 12:46 pm central time 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 1.35 on the CCS and I set a GTC order at 0.65 with our stop loss being three times the credit received so in this case 4.05.

Around 2:03 pm SPX  went down in price and our profit target was hit and I closed the trade for a profit as you can see in the image below. 

Trade 2 SPX 0 DTE:

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 Wednesday the -2 standard deviation line was  touched at around 9:55 am and at 10:02 am I saw a reversal candle and I opened a call credit spread 10-15 points away from the standard deviation and we collected on this trade 1.2 and my target was 50% profit and my stop loss is 3 times the credit received which was at 3.6. 

Around 2:12 pm the stop loss was triggered and I closed the trade for a loss although the price went back up and at the end of the day it would have been a winner but i am sticking to the strategy so far and I am ok with this loss so i sent an alert to the whatsapp group in case anyone was following my trades.  

Total Profit for March 11 2020 profits:

Trade 1: $70
Trade 2: $-235

Total: $-165 per contract.

Total March Trades Profit/Loss: $505 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