You are using an out of date browser. It may not display this or other websites correctly. You should upgrade or use an alternative browser. Log in or Sign up. I only trade the SPY, which I have monitored for so long that my gut often predicts how it will move.

I use weekly options to add leverage and reduce the capital required. This option normally has a delta around. I buy only calls and puts—no fancy spreads. I try to be in a trade for 40 minutes max. Sure, sometimes a trade lasts a few hours, but I always close the trade at the end of the day no matter what. I like to enter my trades around 1: I enter a trade knowing whether the SPY is bullish or bearish on that day, and I never buck the trend: If the market seems flat—the RSI and MACD indicators are not hitting extremes throughout the day—I just stay out.

I make only one trade per day. If I am trading more than that most likely I am either cocky and think I can make more money or I am trying to fix a loss trade—both are bad ideas. If the conditions are right I scale into a trade up to 4 times the dollar-cost average.

I only scale down, never up—meaning I buy more as the price drops, and when I close the trade I sell everything I do not scale out. I time my entry by waiting for the RSI to cross 70 or 30 and then wait for the MACD lines to cross and proceed in the other direction.

I also make sure the MACD histogram bars clearly resemble rolling hills, an indicator that the SPY is not flat.

Learn How To Day Trade SPY Weekly Options

At this point I enter, and if the SPY continues to drop I buy more on the way down. Doing so protects me in the case of an upward spike in the market and frees me from being glued to the computer screen.

I do not set stop losses.

The SPY is not crazy volatile and almost always I have some money left if a trade goes against me. Plus, I never risk more than I can handle losing. Stop losses are bad because sometimes the market really has to fall before it can pick back up.

I rely on my gut to time my exit one of the reasons I have not automated this trading style. If a trade goes against me I simply wait for an uptick and use that opportunity to close the losing trade. Almost every day some buyer comes in and pushes the SPY up or down faster than normal in one big trade, but if not I sell at 3: I do not day-trade, nor do I day-trade options. Curious to trading SPY options VS SPX options.

One would think SPX options would be preferred to reduce commissions costs. Also curious why trading options instead of ES futures for slippage reduction.

Not my cup of tea, but choice of SPY options do not seem optimal for the trading criteria provided SPX options or ES futures seems like a better fit I am merely trying to understand, not critique! It is similar with MACD system by DonKee. Hundreds ways to trade if not thousands. Just a matter of time before you bust out, have seen this hundreds of times of that kind of risk. I don't daytrade but a swing trading method to trade the spy for a couple of days would be welcome.

50% PROFIT DAYTRADING SPY WEEKLY OPTIONS — SPDR S&P ETF (AMEX:SPY) / — GIFTEC | TradingView

What's your long-term performance -- I kind of have a similar methodology I have been doing it for a year. I blew few accounts thanks to algos sideways action. Overall I am in plus since January 1rst. I try to trade only SPY, although sometimes I get tempted to buy VRX, BABA, FB, LULU and NFLX with a small amount of my account.

My result on these stocks are mix. I usually give it back what I make next day. It seems to me SPY works the best, esp with an account under 25k that way you choose best 3 trades in a week rather than jumping into every setup. I have been observing its behavior on Friday.. I have seen SPY do crazy things on Friday I am on the other side of his strategy I sell naked puts and calls on spy..

I am tempted to do one day plays.. I make a bet that.. ONE LAST THING TO OP NOW THAT WE HAVE WEEKLY WEDNSDAY EXPIRY..

DO U TRY IT ALSO ON WEDNESDAY Actually First time I traded wednesday expiry last week. I was little nervous. Same thing like friday expiry. Pretty much I always give myself 5 to 6 days the most for expiry. Only mondays I trade same friday expiry. Again I close my position at the end of the day. I have been burned so many times so keeping overnight is NO NO. I try not to trade on Tuesdays. Never had a good luck, usually low volume with no news. Friday can be a hit and miss.

Especially options expiry weeks. The best part of trading SPY is low IV. You get the most for your buck. SPY moves slow, not like FANG which requires patience. Even numbers can be used as a support and resistance. I fade these extreme readings.

Algorithmic Trading Basics: Systems & Strategies | odomujekadox.web.fc2.com

I have a friend he only buys vertical to keep overnight. He has a formula he acn guess gaps which sounds to me like gambling. It's all about what it works for you.

One day trades can be lucrative, but like Mark Douglas says ANYTHING CAN HAPPEN. Look at the last friday market action after the job report. It's all about sticking your rules.

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