Dec 10 – Trade Plan

Update: A market breadth indicator I use has triggered a short at spy  205.4 with a target of 204.9. I’ve sold 2k shares of spy and put an auto close at 204.9. These trigger probably 25x a year and are good for about 25-30% return unleveraged.  They usually trigger 5-10 min after market open.

**Update 2** I closed at 204.92 and we made out with ~1k profit

 

I’m in the midst of rebalancing for the month of January.

I’ve decided to do

25% Modified Iron Condor

25% TLT/SPY Pair Trade

25% Anchor

15% Momentum

10% Volatility

I’m overbalanced in MIC and waiting for the Dec trade to close this Friday or Monday (latest). I expect to do about 5% on that trade. Once this closes, It’ll release a lot of margin which I’ll use to enter momentum, another MIC and the rest will be dry powder for the next TLT/SPY pair trade.

I had a margin issue yesterday that imbalanced me on the anchor trade which I have to correct. It’s an issue of being over leveraged without accounting for large volatility increase which can throw off the portfolio margin calculation that occurs every night.  The solution! Less leverage!  There’s nothing more stressful then being caught up in trying to become compliant during the first 15 minutes of trading. It throws everything off. You end up chasing to correct offset the entire day.  Won’t happen again.

Right now I am in the TLT/SPY pair trade, over balanced in the MIC trade and slightly overbalanced in the anchor trade. The MIC overbalance will be corrected within the next 2-3 trading days as we exit the position.

 

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