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.


Welcome to Travel and Trades

I figured it was about time to start sharing some of what may be an unorthodox lifestyle. I do a lot of traveling and a lot of trading.  This blog will document my trades and at times my travels and the challenges therein.



I typically follow a non-directional trading style having mostly traded a few strategies

1. Modified Iron Condors (MIC)

2. Earnings related volatility trading

3. Fully hedged Anchor strategy for a long term portfolio

My focus and research/backtesting has been focused on how to maximize leverage in a safe/conservative way.  I’ve determined that non-directional strategies tend to work best for this.

Modified Iron condor (MIC)

The MIC is a non-directional strategy where you sell both ends of the spectrum and buy insurance in the middle. Essentially, you’re a market insurance salesmen. The upside is usually the biggest problem with the MIC and the anchor likes up, so they tend to hedge each other. The EV trading loves volatitlity increases and helps on the down as does the standard adjustments you’d do in the MIC. Down and up are generally covered.

Recently, I’ve decided to further diversify and am doing somewhat equal parts of MIC, Pair trade credit spreads of TLT/SPY,  LC 15M (momentum based trading style based on Meb Fabers research), Volatility trading and finally the Anchor strategy

1. MIC

2. TLT/SPY Pair trade

3. LC 15 M (Momentum)

4. Earnings volatility trades

5. Anchor Strategy

My belief is that this will end up in a very well rounded leverage based trading portfolio.