Sunday, March 22, 2020

March 19 2020 Trades


Today I closed  one DHR trade and 2 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 the other trades are based on daily candles. The other spx 0 DTE was based on standard deviation trade on 5 min candles too. 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 1:31 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 1:36 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 0.65 on the CCS and I set a GTC order at 0.3 with our stop loss being three times the credit received so in this case 1.95.

Around 1:59 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 this  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 Friday the -2 standard deviation line was  touched at around 11:40 am and at 11:47 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 1.10 and my target was 50% profit and my stop loss is 3 times the credit received which was at 3.3. 

Around 2:17 pm the stop loss was triggered and I closed the trade for a loss and  i sent an alert to the whatsapp group in case anyone was following my trades.  



Trade 3 DHR:

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 March 11 DHR came up on my scanner by showing 5 closes on the daily candles below the modified bollinger bands and 50 sma. 

On March 12 the DHR price action triggered  the trigger below the lowest of the 5 candles which was below the low of the 5 candles 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 and our stop loss is two times the credit received as you can from the images below see how much we collected and how much we paid to exit the trade and keep the profit. 





Total Profit for March 19 2020 profits:

Trade 1: $35
Trade 2: $-220
Trade 3: $40




Total: $-145 per contract.

Total March Trades Profit/Loss: $915 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