Sunday, March 8, 2020

March 5 2020 trades


Today I closed 3 trades and two were based on the modified bollinger bands strategy  on daily candles and one spx 1 DTE was based on mobo bands strategy. 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 and 2 : ROST and WYNN trade



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 4, ROST came up on my scanner by showing 5 closes on the daily candles below the modified bollinger bands and 50 sma. 

On March 5 the trigger below the lowest of these candles triggered so I entered a call credit spread and I sent out an alert on the whatsapp group.

On February 27, WYNN came up on my scanner by showing 5 closes on the daily candles below  the modified bollinger bands and 50 sma. 

On March 3 the trigger below the lowest of these candles triggered 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 how much we collected and how much we paid to exit the trade and keep the profit. 

 
Trade 3 SPY (but I used SPX since the puts were expensive) 1 DTE:

For this strategy I use the built in study in TOS called FW_mobo_basic which stands for momentum breakout and I trade the short period (2 hour candles) with the long period (Daily candles). What I mean is I look at the daily candles and I see the mobo bands on the daily candles is RED or SHORT which means to me that when the 2 hour candles fire short I open a bearish trade. 

On Thursday at 11:48 am I noticed the  2 hour candle that was about to close around 1230pm is going below the mobo bands as you see in the image below and I always wait for 5 min before the candle forms to open the trade. As long as it close below the bands the mobo bands will shift to red and I open a bearish trade. 


Usually I buy a PUT on spy but today the puts were expensive so I decided to open a call credit spread on SPX instead and use the same momentum to the down side. So at 12:28pm (2 min before the candle close) I sent an alert to my whatsapp group about the trade and with the intention of closing it at 10% (to benefit from the momentum) or EOD and not keeping it overnight and my stop loss was 3 times the credit received. Since I collected 1.7 on this spread my stop loss was full risk or whatever the cost is at EOD. 


At around 1:22pm the 10% was achieved and I Sent an alert to the whatsapp group that I am closing the trade for a profit in case anyone was following my trade and want to close it too. 


Total Profit for March 5 2020 profits:

Trade 1: $30
Trade 2: $40
Trade 3: $25

Total: $95 per contract.

Total March Trades Profit/Loss: $55 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