Nov 2019: AMZN $1820- $1800 Bear Put Spread
Trade Selection Criteria
Overall market movement
With S&P 500 making new all time highs week over week for 6 weeks now, the overall market and practically every stock in my watchlist is making new highs. AMZN was beaten down but bounced right back up with the market. But the ADX is not supporting this sudden upward price movement.
No Earnings or Significant News
Earnings are behind us and were announced on 10/24. There is no significant news or earnings event during our trade cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are clearly outside Keltner Channels. Perfect time for a mean reversion trade
RSI is in over-extended territory, however not showing any clear signs of trend reversal.
ADX is clearly not supporting the upwards price movement we saw in the last week. This in combination with all other observations, give us a good reason to put on a mean reversion trade.
Beginning Account Balance
Ending Account Balance
Nishant: Hello below is an email I’ve sent to firstname.lastname@example.org twice and it keeps bouncing back so decide to send it here.
Hello, happy holidays.
I registered on your website and purchased your book. The book arrived Saturday and I was through the book in a few hours. I thought it was great, to the point and informative. I’ve already shared the book with a few other friends so they can order it.
Question: Are these trades based off daily charts?I assume they are.
Also, are you using any other times frames to evaluate equity and the market bias?
Once you have a qualified trade do you enter regardless of the time of the trading day?
I forward to your response.
Thanks for your nice words and sharing with your friends. If you don’t mind kindly leave a 1 liner review for my book. I am sorry the email bounced. I will get it checked. Here are answers to your questions:
I also purchased your book and I like it. Did you try to use your method trading futures and indexes?
I don’t trade futures so can’t comment on that. However, it shouldn’t matter what you are trading, the principles should hold. I have applied this to indexes and it works the same. There is no difference. However, you need to find Indexes like RUT, NDX etc where the price movements are larger, it makes it much easier.
Also, if you liked the book, kindly leave a 1 line review for me. It will be greatly appreciated.
Nishant , Do you also invest on behalf of others on a profit sharing basis ?
Hi Vijay. I don’t do that. However, I will be starting my 11th challenge around March. And you will be able to follow my live trades for a monthly fee.
Nishant, Hello I notice in your last post with Vijay you mention monthly fee, what is the monthly fee to follow your live trades?
Yes. For thhe next $25k challenge which will start approximately around March, I will be putting out my live trades. The fees are being worked on right now. I will send out an email update when we are getting ready.
So where are the results? It’s well into January.
Due to Holidays I wasn’t able to update my trades. Will update the results tomorrow. You can verify independently too that this was a 100% winner.
I have updated the results of this trade for anyone interested.
Thanks for the reply. I don’t the update trades.
Surely these results have to be in a summarized spreadsheet form so we can so avg p/l, % accuracy, profit factor, max drawdown etc. Can you pls send it to me?
Going through one at a time doesn’t provide this picture
The trades I post here are for free members to learn from and is meant to be an additional resource on top of the examples I have laid out in my book. In our private Discord group, our 1000 members track all their trades in excel sheets and share with each other.