As you know the SPY Trend/Pullback sub-system went long on
Wednesday at the close. With the move yesterday and today the
version of the system that we use will be exiting at the close.
That said remember this version is the aggressive exit version.
The original version of the system will not be exiting.
I've placed an image here showing both versions, the original on
the left and the one we use on the right. The one we use is exiting
on a simple reversion to mean bounce, which we've gotten. The one
on the left needs the BPT DS indicator below, which has just turned
up, to get over 0.8.
So we have two options here: 1. Close out the trade entirely
today for a nice trade, or...close out 1/2 and leave the other 1/2
long with a stop at entry and then exit the final portion when the
original system exits.
final update, this image confirms that the Trend more aggressive
exit version did exit at the close, see chart on the right. The
chart on the left shows the original Trend system, that one remains
long, the indicator at the bottom BPT DS needs to get back up over
0.8 to exit
Great week and great last year and a half.......After decades of
selling low and buying high, BPT has changed my whole approach.
Still learning but since Jan 2020, I took your advice to have a
plan (trades are similar size dollars, small enough to eliminate
emotion, look for BPT ideas that have tight stops, take 50% off
table if trade is exceeding 10%, keep a record, etc) and after 80
some odd trades my account is up almost 300%!
Still very tentative, cautious, and cashy tip toeing through
this crazy market but am quite happy tallying up
gains/losses.
I am still very good at looking at (just looking...) excellent
setups that later shoot higher :( and also good at buying low and
selling lower LOL. Getting emotions out is super difficult for
me.
And most is in my SEP so tax free no matter for frequent
trades.......stung (in days) when I bet (and essentially lost half)
half the farm on options in gold during last downturn when I knew
everything versus just trying to follow price action, swinging for
the fences apparently didn't work for me
Sold one option at $28.50, leaving the other using your original
system and see how it goes. Thank you always for this. Always saves
me from a disaster.
by the way the SPY option trade July 16th 323 call option is
currently trading for 28.1, and was entered on Wednesday at a price
of 22.65, so very nice gain
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SPY System update
Posted by matt on 14th of May 2021 at 01:11 pm
As you know the SPY Trend/Pullback sub-system went long on Wednesday at the close. With the move yesterday and today the version of the system that we use will be exiting at the close.
That said remember this version is the aggressive exit version. The original version of the system will not be exiting.
I've placed an image here showing both versions, the original on the left and the one we use on the right. The one we use is exiting on a simple reversion to mean bounce, which we've gotten. The one on the left needs the BPT DS indicator below, which has just turned up, to get over 0.8.
So we have two options here: 1. Close out the trade entirely today for a nice trade, or...close out 1/2 and leave the other 1/2 long with a stop at entry and then exit the final portion when the original system exits.
final update, this image confirms
Posted by matt on 14th of May 2021 at 04:04 pm
final update, this image confirms that the Trend more aggressive exit version did exit at the close, see chart on the right. The chart on the left shows the original Trend system, that one remains long, the indicator at the bottom BPT DS needs to get back up over 0.8 to exit
Dear Matt and Steve and
Posted by bosco on 14th of May 2021 at 06:09 pm
Dear Matt and Steve and team community inputters,
Great week and great last year and a half.......After decades of selling low and buying high, BPT has changed my whole approach. Still learning but since Jan 2020, I took your advice to have a plan (trades are similar size dollars, small enough to eliminate emotion, look for BPT ideas that have tight stops, take 50% off table if trade is exceeding 10%, keep a record, etc) and after 80 some odd trades my account is up almost 300%!
Still very tentative, cautious, and cashy tip toeing through this crazy market but am quite happy tallying up gains/losses.
THANKS SO MUCH!
Congrats! I hope to be
Posted by lapri24 on 14th of May 2021 at 08:31 pm
Congrats! I hope to be following your step!
I am still very good at looking at (just looking...) excellent setups that later shoot higher :( and also good at buying low and selling lower LOL. Getting emotions out is super difficult for me.
And most is in my
Posted by bosco on 14th of May 2021 at 09:02 pm
And most is in my SEP so tax free no matter for frequent trades.......stung (in days) when I bet (and essentially lost half) half the farm on options in gold during last downturn when I knew everything versus just trying to follow price action, swinging for the fences apparently didn't work for me
Kudos! From a guy still
Posted by frtaylor on 14th of May 2021 at 06:18 pm
Kudos! From a guy still trying to do everything you just listed.
Sold one option at $28.50,
Posted by lapri24 on 14th of May 2021 at 04:20 pm
Sold one option at $28.50, leaving the other using your original system and see how it goes. Thank you always for this. Always saves me from a disaster.
by the way the SPY
Posted by matt on 14th of May 2021 at 01:17 pm
by the way the SPY option trade July 16th 323 call option is currently trading for 28.1, and was entered on Wednesday at a price of 22.65, so very nice gain