I expect volatility here: shortened week and a lot of news.  

    one can either follow the systems exactly from entry to exit or...if you bought more than one PUT option or you bought a lot of ETF shares - you could have locked in some profits outside of the system on the morning drop i.e.. if you bought 4 PUT options on Friday, could have elected to sell one of them this morning to lock something in then keep the rest to exit by the system.  

    again follow what fits your risk profile. 

    the system is not a day trade system - it needs to hit a daily exit criteria. Should the market rally back and recover this week to another high, it's possible that the system won't exit and could even have a 2nd entry should prices recover over the next couple days and make a new high. 

    for an exit price needs to close below a short term MA like a 5 SMA

    SPX was down 54 points

    Posted by matt on 31st of May 2022 at 12:41 pm

    SPX was down 54 points in the morning and is now flat - hence my comments from this morning about volatility or taking some profits if you bought more than one PUT option on Friday - here's those comments from this morning

    "I expect volatility here: shortened week and a lot of news.  

    one can either follow the systems exactly from entry to exit or...if you bought more than one PUT option or you bought a lot of ETF shares - you could have locked in some profits outside of the system on the morning drop i.e.. if you bought 4 PUT options on Friday, could have elected to sell one of them this morning to lock something in then keep the rest to exit by the system.  

    again follow what fits your risk profile. 

    the system is not a day trade system - it needs to hit a daily exit criteria. Should the market rally back and recover this week to another high, it's possible that the system won't exit and could even have a 2nd entry should prices recover over the next couple days and make a new high."

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!