June 2020: SPOT $180 – $185 Bull Call Spread
Stock
Trade Structure
Trade Date
Price Paid
Expiration Days
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
To participate in our live challenge and to access our online training, please click “Your Account” and upgrade to the “Live Trader” plan.
Trade Rationale
Trade Selection Criteria
Overall market movement
Today was a very interesting day. It felt like the bottom really fell out. We had a huge 1800 point drop in a single day. This definitely meets our parameters for overall market movement as detailed in my book.
No Earnings or Significant News
Earnings were just announced on 4/29 and are behind us
Bollinger Bands outside Keltner Channels
This trade is based on support/resistance. BB/KCs don’t apply here. Please see trade rationale above.
RSI Analysis
This trade is based on support/resistance. BB/KCs don’t apply here. Please see trade rationale above.
ADX Analysis
This trade is based on support/resistance. BB/KCs don’t apply here. Please see trade rationale above.
Trade Analysis
Trade Outcome
Profit/Loss
Beginning Account Balance
Ending Account Balance
it is to late to take a call for spot challenge ?
Yes, SPOT has gone up too high. You can always ask me questions directly on Discord app.
I read your book and use your indicators daily, however it seems that these indicators are designed to spot reversals, and reversals are not that common. So I’m working on patience. Your model assumes that natural market forces are at work, that balance is restored when a stock is over or under extended. However we see that fed stimulus keeps pumping the market higher, overcoming the natural reversion to the mean. Does this mean another bubble burst is coming?
I have explained the main strategy that I use for my trading in the book. Yes, it does require patience. However, since the stock market is such a dynamic environment, I do put on a few other types of trades too and am working on an update for my book to include these. Also, it is virtually impossible to predict what is coming next, so instead of trying to predict what is coming, I try to react to price movement instead. These are the other types of trades I do when mean-reversion trades are hard to come by
I read your book, and I very much like the simplicity of your approach. I agree it is hard to predict what comes next. However, there are quantities, such as the Hurst exponent, that indicate whether an asset is in a mean-reversion regime or trending regime. Do you use such measures in order to determine which strategy to use?
I use technical analysis, support/resistance etc to determine mean reversion.