SPY and ES systems early heads up

    Posted by matt on 18th of Oct 2022 at 10:59 pm

    the QE BTS (one of the 9 sub systems that look for shorts) is looking to take a 1st entry on MES should price conditions hold until the close of the ES bar tomorrow. 

    obviously that system which was

    Posted by matt on 19th of Oct 2022 at 09:56 am

    obviously that system which was looking for a short on ES last night, that condition went away with the big pullback in futures. 

    We've seen a lot of these 'ghost' triggers lately where one of the systems are meeting entry conditions intra day but then lose those conditions by close (and each time those 'ghost' triggers would have been a good trade. The Long from last Thursday that was showing up on the bear long system, and the short, which was showing up last night on the QE BTS system

    Thanks for the heads up

    Posted by mundy on 19th of Oct 2022 at 12:18 am

    Thanks for the heads up Matt. I can prepare all my option trades should the signal be there at the end

    I'd appreciate if you would

    Posted by fundamentalvalues on 19th of Oct 2022 at 06:52 am

    I'd appreciate if you would share what put options you would consider if we get the strong close today. I've seen some using either a month or two out on the expirations. If the instrument is SPY, which strike price would you be using? I'm getting my feet wet in options (starting small). I've traditionally used 3 x etfs for all my trades. I want to keep this as simple as possible, no spreads, nothing complex. Straight up  put options. Thanks to anyone who replies. 

    December puts ITM offer most

    Posted by private on 19th of Oct 2022 at 07:12 am

    December puts ITM offer most reward, 3500-ish OTM offers a low-risk high-reward trades. 

    Thanks. So given that these

    Posted by fundamentalvalues on 19th of Oct 2022 at 07:16 am

    Thanks. So given that these are reversion to mean trades, I would think at the money puts would be a reasonable consideration given the possibility of a 2nd or even 3rd entry and ultimately looking for downside in the markets. 

    yes, the strike must coincide

    Posted by private on 19th of Oct 2022 at 07:19 am

    yes, the strike must coincide with the minimal target expected. I would use spreads for leverage and control of decay for OTM puts.

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