obviously on that SPY trade it was the 3rd entries that made the
money, the 2nd entries were basically flat and 1st entries under
water. However because UPRO is a 3X leveraged ETF that makes
up the difference by a lot. and on options the 3rd entry gained
almost 50%, and had I went with a lower delta option (one that was
closer to the money) it would have made more maybe 75% or
100%.
I know in the past SPY system would do something like 50, 30, 20
etc, however honestly it makes a lot more sense to simply treat the
1st and 2nd and 3rd entries as the same cash amount: such as
10K in each or whatever amount works for you. That way since
the 2nd and 3rd entries are leveraged ETF's are you placing more
capital in 2nd and 3rd entries which are higher probability.
For options it's just easy, treat the 1st and 2nd with the
same multiple and the 3rd entry double up.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
obviously on that SPY trade
Never Fails - As soon as this hit traders bought with both hands
Posted by matt on 28th of Dec 2018 at 10:17 am
obviously on that SPY trade it was the 3rd entries that made the money, the 2nd entries were basically flat and 1st entries under water. However because UPRO is a 3X leveraged ETF that makes up the difference by a lot. and on options the 3rd entry gained almost 50%, and had I went with a lower delta option (one that was closer to the money) it would have made more maybe 75% or 100%.
I know in the past SPY system would do something like 50, 30, 20 etc, however honestly it makes a lot more sense to simply treat the 1st and 2nd and 3rd entries as the same cash amount: such as 10K in each or whatever amount works for you. That way since the 2nd and 3rd entries are leveraged ETF's are you placing more capital in 2nd and 3rd entries which are higher probability. For options it's just easy, treat the 1st and 2nd with the same multiple and the 3rd entry double up.