Very small stops (from 3 pips), ridiculously high RR (to 1:30)

Wish you all the best

There are lots of ways to trade options but if you want a high R:R the butterfly spread fits the bill. The Jun30 SPX put spread shown costs $118 to put on and has a max profit of over $3,200 - with a profit over $800 across a wide range as you get into the last couple weeks of the trade. I don't need to use a stop loss since I will be limited to loss of only the initial $118 debit. I like the $2050 level and I think the US market will slide in the Summer, if not before then...

Oh wow this is like arab to me (don't understand it at all!) but seems interesting..

Can you explain what is it about?
I see it's probably options, and something about the s&p500.

What broker is it?
Care to share some more information?

Thanks!!

Wow Ming never thought you had a positive post in you. Precision bombing is a skill which allows you to operate in all market conditions.

..in the meantime...



no sl, old school, freestyle, somehow easier

SPX is the S&P 500 index. You can trade options on it at many US brokers. The platform shown is thinkorswim, available at TD Ameritrade.

If I thought SPX is moving down in the next few months, I could just buy a put to catch that move. However, that's an expensive way to trade options. By trading spreads, I can lower the cost of entering an options trade. Spreads come with limitations also, though - limitations on the profit potential of the trade.

There are all kinds of spreads - typically they include some combination of long and short options positions. In the butterfly trade above, I am long one each the 2,000 and 2,100 puts and short 2 of the 2,050 puts. Its a balanced combination of options positions that doesn't require any margin allocation other than the initial debit required to buy the spread, which is also the most (typically) that can be lost on the trade.

Options trading takes some study but there are great online resources that anyone can use to learn. I recommend:

tastytrade.com and dough.com

I have created and programmed the strategy which doesn't take TOPS and BOTTOMS , instead is triggered when market wants to move and has been warmed up.

Can you be a profitable with this system ? what do you think ?

I am still optimizing it for better entries.

These arrows alarms when candle opens not closed, and also are non repaint.

The R:R is incredibly high. because it is kind of hit and run strategy.

But the problem is how many of arrows are worth of trading ?!

Taking all of them and increasing the sample size will reduce the profit factor.

I attached some good looking and some shitty looking charts.

If I put the filter to reduce bad trades it will dramatically reduce the good entry points of very very high R:R profitable trades.

It can be filtered more and more, and I am still working on that. But you need to sacrifice one part