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New strategy with focus on weekly income using mainly Options SPYTQQQUDOWSDOWSPX

Hi there I am Daytrading on a C2 account and my edge is writing options with a relatively prudent approach towards risk (I try to avoid getting assigned or holding overnight positions unless its the collection of premiums for a longer time frame option).

So far so good - strategy works fine, I finetuned it, reduced position size and aggressiveness in order to avoid large drawdowns seen in the beginning. Now I do have a problem though - since the options are written (SPY, TQQQ, SPX,…) the brokers probably require an extremely high margin and that might be a problem for some investors. I wonder if this can be circumvented by building credit spreads in order to reduce margin requirements. What is your input, what should be done to make this strategy feasible for most investors? Directional trading by itself without options is not possible - options are my edge. Please let me know your thoughts.

the strategy is 127637709

In case people don’t know the link:

Today we had exactly the situation when the system generates a substantial loss - All day a trending day without making a high and ranging. Broke out of the range since march 26th, S&P has now made a higher low and break-out. Losses are part of the game, will take a few days to trade this back up.

Today we had almost the same conditions as on the 3rd of April albeit without the substantial gap in the beginning. Again the system was caught when the market made new highs and again a profitable trade turned into a loss about 15:52. The difference between being down 900 USD or about 2 k… Anyway the difference today was that I stopped losing trades short quickly which led to 2 premature exits but so be it. It was also the first day where I added further measures to the trading system but unfortunately only in the second half of the day. We still experience abnormal conditions where good or bad news about COVID-19 could send the market tanking or rising like a space shuttle.

Today the strategy worked with a few modifications introduced yesterday.

I had a few days with the new rules, making progress. I think April will still be positive and I am aiming for a new equity high.

By the way I offer the first month for free. If you subscribe contact me immediately so that we do some test trades, etc.

You can post a coupon for subs to subscribe to in this thread.

fyi.

Here is a code for 1 free month for the strategy. You should be able to generate enough money to pay for the 2nd :wink:

UGNX57548

As you probably realize this way of trading has its risk. On Friday I was caught short handed 8 minutes before the close and my almost worthless SPX calls went deep in the money - by the time I could close them I lost 5 USD per option just to see it all expire worthless 8 minutes later. Cutting the position was part of the plan, the loss was substantial but not catastrophic.This is the 3rd time now I have seen the market react like this, maybe it is time to design a trading strategy on this :wink:
I have started one strategy that I designate to become a C2star (I want the permanent income :wink: ) so if you require a less aggressive strategy without options please take a look there.

Friday has always been the riskiest trading day, with lots of weird and sudden reversals that appear out of nowhere.

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A little update - Taking a small oil short has proven to be the right step. Building up a short position in the markets with a longer time horizon has not worked so far. I have a downwards bias in this market but I must admit every day that passes the likely hood of a covid-vaccination and medication grows, and the market might very much move higher due to the massive influx of capital and the fading of the fear factor related to covid 19. I will keep a close eye on the TQQQ short.

I finally cut the TQQQ short yesterday at a moderate loss. I left the trade open for a week and the market just kept on moving up so who am I to stand in its way.

Same business as usual - I first bought the 2700 SPX puts and then went short the 2800 SPX puts quitting early taking some profit. Did some profitable daytrading on TQQQ as well basically paying for the cost of the 2700 puts which are needed for margin requirements (SPX is a heavy contract).

I have started a new C2 Star strategy of which requires some performance to make the cut after a not so wise investment in USO. Check it out. The strategy over here mainly focuses on derivatives which are unfortunately not available i the C2 Star program (they think its more risky than trading futures :))))))) )

06.05.2020 business as usual with focus on SPX today.

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