Posted by frtaylor on 27th of Oct 2022 at 03:23 pm
For me, this is the hard part of adhering to the system trades.
It's profitable, but not hugely so; the market looks like it wants
another leg higher (c of abc); and two huge companies report
tonight. Plus the down action has been very choppy, so it
looks like it's corrective and can turn up at any time.
It's very difficult to beat the system trades
in totoby exiting early, even just partially. But every
bone in my body says sell, or at least put a breakeven stop in.
Posted by elementsix on 27th of Oct 2022 at 03:55 pm
SPY Systems - It's always hard to hold when things go against
you first and then claw back to near even. But over time the
systems do VERY well. They are based on technicals, not on
fundamentals (earnings) so i try to stick with them, especially
when I find myself second guessing things.
Posted by DigiNomad on 27th of Oct 2022 at 03:40 pm
Frtaylor - there are various ways to approach trading the
systems. I wasn't super confident on the last call so I used a
credit spread and posted it for the community. It's up about 14% so
far, even though the market hasn't moved much since then.
Posted by frtaylor on 27th of Oct 2022 at 03:47 pm
Unfortunately my retirement account isn't big enough yet for
much in the way of credit spreads - uses too much margin, etc. I
did buy an otm call w/ expiration tomorrow, to protect against a
big move up.
Posted by DigiNomad on 27th of Oct 2022 at 03:52 pm
Rule of thumb for my spreads is 10% potential ROE. So, if I'm
targeting a 200 dollar gain with a credit spread, my margin will be
no greater than 2K...often less as I get more than 10% ROE most of
the time (selling 16 delta strikes). Hard to imagine you're
using less than 2K of capital if the trade is going to be
worthwhile, considering the systems trades often just shoot for a
percent here and a percent there kind of thing.
For me, this is the
SPY and ES systems update
Posted by frtaylor on 27th of Oct 2022 at 03:23 pm
For me, this is the hard part of adhering to the system trades. It's profitable, but not hugely so; the market looks like it wants another leg higher (c of abc); and two huge companies report tonight. Plus the down action has been very choppy, so it looks like it's corrective and can turn up at any time.
It's very difficult to beat the system trades in totoby exiting early, even just partially. But every bone in my body says sell, or at least put a breakeven stop in.
SPY Systems - It's always
Posted by elementsix on 27th of Oct 2022 at 03:55 pm
SPY Systems - It's always hard to hold when things go against you first and then claw back to near even. But over time the systems do VERY well. They are based on technicals, not on fundamentals (earnings) so i try to stick with them, especially when I find myself second guessing things.
Frtaylor - there are various
Posted by DigiNomad on 27th of Oct 2022 at 03:40 pm
Frtaylor - there are various ways to approach trading the systems. I wasn't super confident on the last call so I used a credit spread and posted it for the community. It's up about 14% so far, even though the market hasn't moved much since then.
Unfortunately my retirement account isn't
Posted by frtaylor on 27th of Oct 2022 at 03:47 pm
Unfortunately my retirement account isn't big enough yet for much in the way of credit spreads - uses too much margin, etc. I did buy an otm call w/ expiration tomorrow, to protect against a big move up.
Rule of thumb for my
Posted by DigiNomad on 27th of Oct 2022 at 03:52 pm
Rule of thumb for my spreads is 10% potential ROE. So, if I'm targeting a 200 dollar gain with a credit spread, my margin will be no greater than 2K...often less as I get more than 10% ROE most of the time (selling 16 delta strikes). Hard to imagine you're using less than 2K of capital if the trade is going to be worthwhile, considering the systems trades often just shoot for a percent here and a percent there kind of thing.
sent you a pm.
Posted by frtaylor on 27th of Oct 2022 at 09:52 pm
sent you a pm.