Saturday, March 28, 2020

March 27 2020 Trades

Today I closed  1 spx 0 DTE (zero days to expiration) trades. The  SPX 0 DTE trade was based on 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 1:35 pm 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 1:38 pm 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 0.8 on the PCS and I set a GTC order at 0.4 with our stop loss being three times the credit received so in this case 2.4.

Around 2:09 pm SPX  went up in price and our profit target was hit and I closed the trade for a profit as you can see in the image below. Today was a perfect example why i close at 50% and run with the profit rather than let them expire worthless. spx the last 10 min went down toward the sell strike and although it would have been a winner it would have been very testy and nerve racking for sure. 

Total Profit for March 27 2020 profits:

Trade 1: $40

Total: $40 per contract.

Total March Trades Profit/Loss: $1165 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