SPX Trading Strategy for ThinkorSwim

[Sree]

GOOGL is just about there to meet your conditions, 10 mins chart. About to pull the trigger on a buy PUT in next 8 mins when the bar closes in favor.

 

[Hypoluxa]

GOOGL is just about there to meet your conditions, 10 mins chart. About to pull the trigger on a buy PUT in next 8 mins when the bar closes in favor.

Good luck. And just so I'm clear once again.....this setup has only been tested on SPX. There is zero guarantee that it will carry over to another stock without doing some tweaks.

 

[Sree]

MA cross over happened, however first red dot is on Zero line, so didn't take trade. Also, there are several dots previous to it very close to Zero line confirms the strong support. Will wait for next bar.

 

[Sree]

Ok, took the trade. Lets see, will be a good test. hoping for a nice run

 

[Hypoluxa]

Ok, took the trade. Lets see, will be a good test. hoping for a nice run

indicators look good so far

 

[Sree]

Trade is now on auto pilot with the following order, looking for price close above EMA9

 

[Sree]

Its on squeeze now...

 

[Sree]

looking pretty week, almost there on ema9

 

[Sree]

since its still on squeeze, holding the position, it already closed above EMA 9...took off auto pilot, if it was closed, it was a loser at ($150.00)

 

[Sree]

ok, looks better now...squeeze fired downside, looks like its good to go..back on auto pilot

 

[Sree]

holding on tight, position looks good and is up by $260 so far...

 

[Sree]

Due to a pullback, position is now ($30), still holding on Auto order

 

[rad14733]

@Sree That isn't scalping, that's torture... Take the profit when it presents itself as you may never see that level of profit again...

 

[Sree]

Here is the result, observations and conclusion of this test: Closed position at EOD.

Entered trade: Open to buy 1 PUT contract of 5 mar 21, 2125 strike at $49.70; [all conditions met for the strategy]
Highest Option price yield at the peak of this run: $54.50, yielding a benefit of $480.00
Option value at Close to Sell 1 PUT contract is at: $51.30, yielding a benefit of $160.00

Although I closed the position due to EOD and at the time of my exit, price was hovering above 9EMA, at closing bell, the price moved down below 9EMA and the closing bar was clear from stop loss zone, so the position has not met the exit criteria yet and can still be open.

From a PnL perspective, on close: realized value $160/$4970 = ~ 3% yield
Potential yield: $480/$4970 = ~ 9.65 % yield

So I guess, we can easily set a profit target of 9 to 10% ROI and a trailing stop loss of close above 9EMA. Not bad at all.

That said, the strategy seems to be solid. Thanks much Hypoluxo for the strategy and a cool $160.00 to my pocket

Hope this test was of some use to the community here.

Below is the screen shot:

Current status:

 

[Sree]

@Sree That isn't scalping, that's torture... Take the profit when it presents itself as you may never see that level of profit again...

Agreed , however, my intention was to test and see how the overall strategy presents and concludes.

 

[Hypoluxa]

@king_louie the new setup I sent you worked twice today for SPX.
VIX and SPX lined up for a SPX put at 11:40ET ($6 SPK price drop) and again at 15:20ET ($3 SPX price drop). The $3 stock drop on a put premium I watched increased $2+.

 

[Jim C]

@king_louie the new setup I sent you worked twice today for SPX.
VIX and SPX lined up for a SPX put at 11:40ET ($6 SPK price drop) and again at 15:20ET ($3 SPX price drop). The $3 stock drop on a put premium I watched increased $2+.

Thank you for sharing your strategies. I am going to be doing some testing on the original post on SPX myself. My only issue is I’m trading from mobile on TOS. Do you know what changes the color of the dots on the MACDBB script?

This is the code:

(if MACD_Line > MACD_Line[1] then Color.White

else Color.DARK_RED);

But I’m unsure as the what the [1] is referencing in the script. If it’s something I can script for mobile or reference another way that would help! I asked Ben Ten in the original thread as well. Thanks!

 

[Hypoluxa]

Thank you for sharing your strategies. I am going to be doing some testing on the original post on SPX myself. My only issue is I’m trading from mobile on TOS. Do you know what changes the color of the dots on the MACDBB script?

This is the code:

(if MACD_Line > MACD_Line[1] then Color.White

else Color.DARK_RED);

But I’m unsure as the what the [1] is referencing in the script. If it’s something I can script for mobile or reference another way that would help! I asked Ben Ten in the original thread as well. Thanks!

No, sorry...I can't be much help with scripts or reading them. Good luck tho!

 

[rad14733]

@Jim C The [1] means previous candle/bar, [-1] means look to the next candle/bar, and if used [0] means current candle/bar for whatever variable or price you are referencing... When this index is omitted, the current candle/bar is used...

 

[king_louie]

I've done a complete revamp of SPX...but for PUTS ONLY. It's really hard to dial in calls for this one. Watch this setup this week and see what you think. I've attached a spreadsheet with the dollar amount each day it triggered a signal.
You will need to have VIX pulled up on one screen and SPX on another....both 1day 10mins. VIX and SPX are inverted from each other, so make sure VIX has a green candle with a light blue TTM bar with a green dot on top....SPX will need a red candle with red TTM bar and green dot. The TOS screenshot, you will see the alignment at 11:30. SMA 3 and 9....TTM Squeeze 9, 2.3, 2.5, 0.5
And yes....there are some single digit days....but we all have to live with that risk in order to hit the big ones.

Sweet! My TOS was down for a few days (Torture!) Will keep an eye out for this