SPX Trading Strategy for ThinkorSwim

[Hypoluxa]

Thanks. That is the percent win but not the risk to reward ratio or the PnL.

I just started monitoring it live this week. I don't have examples yet.

 

[rad14733]

Are you buy and sell the same day option or few days?

On a 10 minute chart this would be best for either scalping or day trading... I've monitored it at 5 minutes as well and it can be as good as 10 minutes, depending on volatility...

 

[samoya]

I just started monitoring it live this week. I don't have examples yet.

You mentioned to use a target with 1$ move.
Do you define the risk SL also with 1$ against your position?

 

[Hypoluxa]

You mentioned to use a target with 1$ move.
Do you define the risk SL also with 1$ against your position?

yes...but I also try to get in a trade on a buy limit as well...so if it looses a $1...something def went wrong.

 

[Hypoluxa]

Are you buy and sell the same day option or few days?

I never hold overnight...I scalp...so I'm hoping to be in and out in less than 10 mins...

 

[Hypoluxa]

This SPX setup worked twice today...and back to back! Made $1500 on a put.

 

[malone1020]

Why might this only work on SPX? Or is that all against which you have tested it? What about SPY? Or equities?

Thank you for sharing!

 

[rad14733]

why might this only work on SPX? Or is that all against which you have tested it? What about SPY? Or equities?

Thank you for sharing!

It works for all symbols I've tested it with... I think @Hypoluxa only trades SPX... Some of us only trade a very limited number of symbols... It helps us to be able to better predict the future... I have played with indicator settings but the ones presented in the first post are good enough if you aren't experienced with tweaking settings... They play well together...

 

[malone1020]

It works for all symbols I've tested it with... I think @Hypoluxa only trades SPX... Some of us only trade a very limited number of symbols... It helps us to be able to better predict the future... I have played with indicator settings but the ones presented in the first post are good enough if you aren't experienced with tweaking settings... They play well together...

Thanks, Rad. Have you found better success on equities with alternative settings? Plenty of experience configuring those, of course.

 

[Hypoluxa]

It works for all symbols I've tested it with... I think @Hypoluxa only trades SPX... Some of us only trade a very limited number of symbols... It helps us to be able to better predict the future... I have played with indicator settings but the ones presented in the first post are good enough if you aren't experienced with tweaking settings... They play well together...

spot on with your reply. I used to jump around a lot with different symbols and stopped that a while back. This setup also works with AMZN, but change the MACDBB settings to 10,16,36. I only trade SPX and AMZN nowadays and have FINALLY found a solid setup for them. I wasn't just trying to find a setup to make money...it was extremely important to find one that kept things safe!

Thanks, Rad. Have you found better success on equities with alternative settings? Plenty of experience configuring those, of course.

It will work with AMZN too...there were 7 opportunities just this week alone with that symbol. I didn't start tinkering with that one until yesterday.
Also, SPX and AMZN move pretty deliberately when they hit these signals. Others are just too choppy or don't have enough movement...SPY being an example of that.

Something I've also noticed with AMZN and SPX with this setup...make sure the Heikin Ashi candles are "clean"...consistent in other words, as it approaches the zero line crossover. For a call - If the candles are green and the SMA has crossed...if red candles mix in BEFORE the MACD dots crosses up and over the zero line, there is a strong chance the run is very short lived. Same goes for a put....if green mixes in with red before crossing down below the zero line...it could be short lived.

But trust me...there are plenty of these consistent/clean opportunities...so remain patient!!

 

[malone1020]

This is very neat, @Hypoluxa.

When you select your option, how are you choosing your expiry and strike price once this system triggers?

 

[Hypoluxa]

This is very neat, @Hypoluxa.

When you select your option, how are you choosing your expiry and strike price once this system triggers?

For SPX - it has 3 expirations per week just like SPY does. So if its an expiration day, I'll choose that day if its before noon. otherwise ill choose the next expiration date.
Delta at least 35 cents and make sure it has good volume and open interest.

AMZN will always be the week of expiration until noon Friday, then I choose the next week.

 

[Hypoluxa]

Something else to make you guys aware of:

If you change the timeframe from 10 mins....make sure you adjust the settings I've posted about.

 

[Chence27]

@Hypoluxa Why don't your HA candles have any wicks?

What settings would you recommend for a 5 min chart?

 

[Hypoluxa]

@Chence27 I removed them for a cleaner look. I scalp and don't need the wicks for a trade that has great momentum or for only a few mins. LOL

IDK...haven't looked at that timeframe yet.

 

[Chence27]

@Hypoluxa Fair enough. Perhaps just to guide me in the right direction, which settings would you consider changing?

 

[rad14733]

@Chence27 and @malone1020 I haven't had a chance to determine what settings changes work best across multiple equity ranges as yet but will report back if and when I make any determinations...

 

[Chence27]

I've noticed that when the MACD BB is above or below 1 and the dots change color, it's a good indicator of a reversal.

 

[Hypoluxa]

Fair enough. Perhaps just to guide me in the right direction, which settings would you consider changing?

start with the 10min settings I posted about. Then change the time to 5 mins...here's what you need to lookout for: I adjust settings till I see very few short lived runs. You want the white dots for a call (crossing up over the zero line) and the red dots for a put (crossing down below the zero line) to keep you out of a short lived run or a negative situation. I will look back in time for a day that has a few of those and stay on that day and tweak till I feel comfortable. Then I'll backtest 90 days and more tweak as needed. There's no such thing as 100% perfection...but I try to get as close as possible

 

[Hypoluxa]

I've noticed that when the MACD BB is above or below 1 and the dots change color, it's a good indicator of a reversal.

good catch...that's what I'm trying to tweak next....how can I get in a little sooner....but still be a safe entry.