Friday, July 29, 2016

July 29 - SPY breakout could be on the way

SPY could finally be breaking up and out.  Could also fail but I am betting on breakout.

On an exciting note, I am making a very major change to my trading.  I realized through a recent audit of my trades that I am sometimes overtrading and limiting my profitability by trying to take on too many perceived opportunities.  And quite frankly, it is too much work to try and potentially engage so much movement.

I decided to do some things and will add more rules in the future.

1.  Edit the amount of trades I execute and install stronger filters to potential entries.  This will probably drastically reduce the amount of trades I do and it is likely there will be periods where I will be in mostly if not entirely cash.

2.  Create an account towards a system-based trading style which will make volatility/ seasonality plays.  The other account will be entirely discretionary and take on equities and commodities.  Each account will have 100k.  The reason for the split is I basically realized running rules-based trading systems in the same account that I was occasionally running discretionary trades was mucking things up.  I believe by splitting them, the system trading won't have as much risk of me tampering with the rules and activity and the discretionary trading could become more systematic by being influenced by a strict rules based system.

3.  Limit number of trades per week to 4 round trip trades a week per account to 15 trades maximum per month for each account.

4.  All trades need to have been researched as potential trades at least a day in advance.  Preferably the week before.

5.  Each trade will be posted with stop loss and profit targets and I will start a P/L graph and R graph.

Today for the 'Volatility Account' executed 2 trades

Sold 11 UVXY Aug 19 25/28 call spreads for .87
Bought 100 VXX Aug 26 10.5/10 put spreads for .34

In the 'Discretionary Account'
Bought 100 SPY Aug 19 214 calls for 4.42






4 comments:

jim said...

Thank you for the update and changes
It looks very interesting and will give me a better chance of following along
with your strategies
Appreciate your work and commentary

Greenlander said...

Yeh I realized I was leaving money on the table and needed to make changes. I was pursuing too many angles and basically 100% of the trades were discretionary. If anything, the act of being more diligent keeping records should improve performance.

Geet Khare said...

The result was announced after market hours on Friday, 29 July 2016. CapitalStars

Geet Khare said...

Shares of HCL Technologies, Tech Mahindra, Indian Bank, Tata Power and GlaxoSmithKline Consumer Healthcare will be in focus this week amidst their April-June quarter earnings announcements. CapitalStars

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