Posted by patellee on 25th of Jul 2022 at 03:25 pm
For the SPY systems, when one closes 1/2 out I can see how that
can be applied to the options. What is the recommended
strategy for the ETFs? Would you close half on each ETF?
it's whatever you have man and what fits your risk profile and
trading style. The trade tables I show - I don't intend that folks
do those exact sizes. 10K for ETF's is very small for example
unless one has a really small account. I assume most are doing much
larger sizes for those. For options, I don't know what folks do.
some may do the 1,2,3 like I show and others who like to bet larger
might be taking 2 or 4 or 10 contracts on entry, and then doubling
that for 2nd entries. What I show is just a base amount.
obviously if you only have 1 contract you can't divide it so you
have to make your own decision on that.
So that I don't continue to get this question I have thought
about doing 2, 4, 6 for the 1st, 2nd, 3rd entries on the options
because then there's not question about it. One may also choose not
to take partial off and just stick with system until it closes
Posted by DigiNomad on 25th of Jul 2022 at 03:31 pm
You can divide one long contract by shorting a number of shares
equal to 1/2 the current delta (if you want to take off 1/2 risk).
Note that using delta this way requires adjustments along the way
as volatility and time to expiration change (the other
greeks)...but it's always worked pretty well for me, especially in
short term situations.
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SPY and ES systems early trade notification
Posted by matt on 25th of Jul 2022 at 02:05 pm
Here's the image showing the 6 open sub systems that are in trades.
Should prices close down around where they are the QE BTS on the ES will close out (bottom left chart).
The QE BTS for SPY (bottom right) is not closing out, however I'll likely issue a sell 1/2 alert.
Strap on ES Still holding for now, as is Hi Mid Lo
Bear long on ES holding, as is that breakout - but can't go much lower on breakout other it gets stopped out
Matt, ES Breakout = Stopped
Posted by crossharry on 26th of Jul 2022 at 11:44 am
Matt, ES Breakout = Stopped out soon?
For the SPY systems, when
Posted by patellee on 25th of Jul 2022 at 03:25 pm
For the SPY systems, when one closes 1/2 out I can see how that can be applied to the options. What is the recommended strategy for the ETFs? Would you close half on each ETF?
it's whatever you have man
Posted by matt on 25th of Jul 2022 at 03:29 pm
it's whatever you have man and what fits your risk profile and trading style. The trade tables I show - I don't intend that folks do those exact sizes. 10K for ETF's is very small for example unless one has a really small account. I assume most are doing much larger sizes for those. For options, I don't know what folks do. some may do the 1,2,3 like I show and others who like to bet larger might be taking 2 or 4 or 10 contracts on entry, and then doubling that for 2nd entries. What I show is just a base amount.
obviously if you only have 1 contract you can't divide it so you have to make your own decision on that.
So that I don't continue to get this question I have thought about doing 2, 4, 6 for the 1st, 2nd, 3rd entries on the options because then there's not question about it. One may also choose not to take partial off and just stick with system until it closes
You can divide one long
Posted by DigiNomad on 25th of Jul 2022 at 03:31 pm
You can divide one long contract by shorting a number of shares equal to 1/2 the current delta (if you want to take off 1/2 risk). Note that using delta this way requires adjustments along the way as volatility and time to expiration change (the other greeks)...but it's always worked pretty well for me, especially in short term situations.