The strategy focuses on utilizing a "15-Minute Opening Range Breakout" for trading SPX with vertical spread options. Initially, traders identify the opening range by monitoring SPX prices during the first 15 minutes. They establish this high-low range as the pivotal breakout area, and adjust their trading platforms to track and set alerts for breaches, collecting and analyzing historical data for patterns that aid in decisions.
Once the range is identified, traders engage in executing breakout trades. They employ vertical spreads, integrating risk management by setting stop losses at 80% of the potential loss, and define profit targets. Automated triggers facilitate timely entry, while paper trades and market news awareness ensure refined decisions. Continuous evaluation of trades fosters strategic insights.
Refinement of the strategy includes performance reviews to achieve a 70% win rate. Observing loss patterns, adjusting stop losses, and networking with other traders are encouraged. Keeping abreast of market news, adapting analysis methods, exploring technical indicators, and participating in educational forums are also emphasized for improvement and adaptation.
The strategies
⛳️ Strategy 1: Identify opening range
- Monitor SPX from market open
- Identify high and low prices during the first 15 minutes
- Establish this range as the key breakout area
- Adjust trading platform settings to track this range
- Set alerts for breaches of high or low of the range
- Collect historical data of 15-minute opening ranges
- Analyze patterns and deviations from these past ranges
- Determine average range size for position sizing decisions
- Engage in backtesting with historical SPX data
- Prepare mental and written notes on findings for active trading
⛳️ Strategy 2: Trade the breakout
- Place vertical spread option trades based on range breakout
- Ensure stop loss is set at 80% of the maximum potential loss
- Define profit targets ahead of time to lock gains
- Use a trigger system for automatic entry based on breakout
- Implement risk management practices to align with set stop loss
- Monitor live data to validate legitimate breakouts
- Avoid chasing breakouts that occur too rapidly
- Remain aware of market news that may affect SPX movements
- Evaluate entry points via paper trades to refine approach
- Record and analyse each trade to evaluate effectiveness
⛳️ Strategy 3: Refine and adapt strategy
- Review daily performance against the 70% win rate aim
- Identify patterns in losses and address potential adjustments
- Adjust the stop loss percentage if not aligning with loss tolerance
- Network with other traders for insights on SPX options trading
- Stay updated with economic news impacting SPX
- Regularly update your analysis methods with market changes
- Explore additional technical indicators to support decision-making
- Attend webinars or courses on advanced trading strategies
- Schedule weekly strategy review meetings to discuss improvements
- Document lessons learned and positive outcomes for continuous improvement
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
