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May have to change the name of my SPY options game


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#1 diogenes227

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Posted 24 April 2018 - 01:36 PM

Puts:

 

SPY OPTIONS - a massive trending day


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#2 redfoliage2

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Posted 24 April 2018 - 01:50 PM

With high volatility last for so long I believe you can make big money on this when the market goes your way.  But if the market does not go your way on that day you loss could be 100%, right?



#3 diogenes227

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Posted 24 April 2018 - 02:06 PM

With high volatility last for so long I believe you can make big money on this when the market goes your way.  But if the market does not go your way on that day you loss could be 100%, right?

 

That is possible, of course, except I do use a stop on the downside that will prevent that, and if my signals reverse the trade reverses with them.  Also I do have signals to sell into strength based on how far the ES has gone for the day on days like today.  

 

These are all day trades so there's not much time commitment nor theta (my way or the highway right away).

 

The real losses come when there's several bad days in a row.  A couple of weeks ago, this system lost 200% for the week (got that all back today and more) so obviously I only trade it with a small portion of my money.

 

Good luck and good trading.


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#4 redfoliage2

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Posted 24 April 2018 - 02:15 PM

 

With high volatility last for so long I believe you can make big money on this when the market goes your way.  But if the market does not go your way on that day you loss could be 100%, right?

 

That is possible, of course, except I do use a stop on the downside that will prevent that, and if my signals reverse the trade reverses with them.  Also I do have signals to sell into strength based on how far the ES has gone for the day on days like today.  

 

These are all day trades so there's not much time commitment nor theta (my way or the highway right away).

 

The real losses come when there's several bad days in a row.  A couple of weeks ago, this system lost 200% for the week (got that all back today and more) so obviously I only trade it with a small portion of my money.

 

Good luck and good trading.

 

You too.........



#5 CLK

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Posted 30 April 2018 - 11:09 AM

I think for day trading, if one can place stops correctly, that your internals system does good, sometimes though, NYAD

can diverge quite awhile from price as price is going up, not as good as price only on those days. I figured you are using NYAD

or MCO from Tradestation. I set my own version up, smoothed out with Renko.

 

 


Edited by CLK, 30 April 2018 - 11:09 AM.


#6 diogenes227

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Posted 30 April 2018 - 09:44 PM

I think for day trading, if one can place stops correctly, that your internals system does good, sometimes though, NYAD

can diverge quite awhile from price as price is going up, not as good as price only on those days. I figured you are using NYAD

or MCO from Tradestation. I set my own version up, smoothed out with Renko.

 

 

 

I used NYMO and NYSI for the end of the day.  I tried using the A/D line as an additional filter for the day trades but found, as you've also discovered, it lags and is too slow for day trading, kind of like a freighter when one needs a speedboat. 


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#7 CLK

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Posted 01 May 2018 - 02:20 AM

Your indicators are not internals based, or you custom built your own ?



#8 diogenes227

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Posted 01 May 2018 - 10:32 AM

Your indicators are not internals based, or you custom built your own ?

 

It's price for the day trades but there is breadth since these are trades on the SPY - 500 big stocks moving up or down. Could be QQQ or IWM as well, whatever a trader's preference, but the SPY options are just so liquid.  I once sold 500 calls at the bid after TradeStation's automation  bought them by accident (a typo by me in settings when I only wanted 50 swoon.gif ).

 

I wrote this on Reddit yesterday, where I usually get a lot of flak and down votes (biggrin.png) -  "I've learned in options trading simple is best and the obvious is often the most elusive to recognize."  I'm not sure anyone there actually got that. I might make it the motto for options posts on my blog.

 

Good luck and good trading.


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."