Repaints AGAIG Trading The QQQs & SPY For Profit With ThinkOrSwim?

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AGAIG TRADING THE QQQs & SPY FOR PROFIT?

Is there a way to trade the QQQs and SPY and gain profit?​

The QQQs and SPY are volatile ETF’s (Exchange Traded Funds) with a lot of stocks represented in each ETF.

The QQQs (based on a 12-day lookback) have daily ATR (Average True Range) of 10.6 and the SPY a daily ATR of 8.1. Is there a methodology for capturing this movement and be profitable in the process? Is it possible to make a profit on trading these two ETFs?

shared link: http://tos.mx/!pgC5ktEy

I think there is and here my potential methodology for capturing profits as long as you recognize there is no holy grail and nothing works 100% of the time. Painters, non re-painters, nor A.I. can tell us where the market will end today or anywhere in the future.

METHODOLOGY: Any methodology (this one included) should be paper traded until one determines if it works for them and has any validity for their trading purposes. I trade these at least three days out since 0 DTE (zero days until expiration) can produce a lot of losses for the inexperienced trader.

• Place trades three days out from expiration (3 DTE) just prior to close of market around 3:45 p.m. based on several factors.
• Begin evaluating potential direction moves starting at 3:30 p.m. each day for placing trades between 3:45 and close of market. Keep in mind that these two ETFs have the capability for trading fifteen minutes after close of market (until 4:15 p.m. Eastern Time).
• Trades will not be placed unless charting shows probable (potential change in direction).
• If market choppy into close = no trade today.
• There are several questions to ask when studying end day charts:
• Where are these ETFs closing in relationship to the VWAP (Volume Weighted Average Price) and what is market direction overall.
• Is price above/below the ORB (Opening Range Breakout). Price tends to drift back into the ORB at close and/or towards the VWAP.
• Where is current price in relationship to the Murrey Math Pivot points? Are we extended into either pivot?
• Where is price in relationship to the True Momentum Oscillator? Is price extended up into the red zone, or extended down into the green zone, or uncertain between these two extremes? Has the ETF been pivoting between these two points throughout the day?
• Are there any Long/Short Bubbles and/or Green/Red Histogram on the chart showing possible change in direction?
• 
  
• If the above questions show alignment for a probable change in direction, I am ready to place a trade as follows:
• Trades will be limited to $1,000 risk and will be traded three days out to expiration. If today is Monday, I will be placing trades for Thursday’s expiration. If today is Thursday, I will be trading next Tuesday’s expiration.
• Since these ETFs tend to move several points each day, I will place trades ATM (At the Money) or 1-2 places OTM (Out of the Money). Since my maximum risk is $1,000 means: if the option I am trading is $3.25 I can trade 3 contracts ($975 total), or if option price $4.50 I can trade two contracts maximum.
• Once a trade is placed, I will place a GTC (Good Until Cancelled) to close for a reasonable profit and a stop-loss if the trade doesn’t work. If the trade remains above my stop-loss I will let it run for the first two days. Trades are always taken off near the end of the second day and not left in place for the third day (expiration day due to rapid Theta Decay). Also, it is prudent to place a stop-loss in case of a drop in option price in order to limit loss (each person should set what their acceptable loss tolerance could be).

The above methodology is not intended to imply that it is a better strategy than any others for trading the markets. There is no strategy that works all the time. It is a strategy I developed for myself and am sharing it with you to see you find any value from the process. Paper trade it as you would any strategy.


The above reasoning is for educational purposes only as there is risk in trading! There is no known method that can guarantee success!

The chart I am using to evaluate these potential trades is as follows:

The chart link: (I open these two charts around 4:30 p.m.)

http://tos.mx/!pgC5ktEy This is the chart I use and it contains many re-painting indicators which should not be used in isolation. I have always recommended that multiple indicators are showing a change in direction before placing a trade.
The chart look:

https://imgur.com/a/8ZaVmlh