Monday, March 2, 2020

March 2 2020 Trades

Today I closed 2 trades and both were spx 0 DTE (zero days to expiration) one was a looser and the other was a winner. The first trade  was  SPX 0 DTE trade based on the modified bollinger bands strategy  on 5 min candles, and the next  was SPX 0 DTE trade based on std deviation. 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 11:52 an central time, SPX 5 min candles came up on my chart by showing 5 closes on the 5 min candles above the modified bollinger bands and 50 sma. 

So I placed the trigger above the highest of these candles and at 11:54am central time the trigger triggered so I entered a put 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 0.95 on the PCS and I set a GTC order at 0.45 with our stop loss being three times the credit received so in this case 2.85.

Today around 1:41pm SPX  went down in price and our stop loss was hit and I closed the trade for a loss on this one. Just sticking to the strategy and the trading plan since no one knows what spx would do. Although this trade ended up a winner at the end of the day over the long run I have to stick to the strategy to stay consistent so i took the small loss and moved on. 

Trade 2: SPX 0 DTE

This spx 0 DTE is based on the standard deviation channels in TOS and I watch it on 5 min candles and see when it hits the price action cross over the 1 std deviation heading into the 2 std deviation i watch for a reversal candle and when I see that I open a CCS and exit at 50% profit.

Today at 11 am central time spx price crossed the 1 std deviation and I was watching it to see a reversal as it gets closer to the 2 std deviation. At 11:22 am central time I saw that and I entered a CCS above the std deviation to give me space to let the option plays in case it went against me. My stop loss is 3 times the credit received but today the premiums were high so my loss was full risk on this spread since the 3 times the credit received is almost the full risk on the spread.

When I entered I collected 1.6 and I exited the trade at 50% or when it cost 0.8 at around 12:33 central time and I alerted the whatsapp group to let whoever is doing the trade with me and following my trade that I am out for $80 profit per contract.

Total Profit for Feb 5 2020 profits:

Trade 1: $-190
Trade 2: $80

Total: -$110 per contract.

Total MarchTrades Profit/Loss: -$110 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