Hey Guys,
The market is down some from where it closed yesterday, but overall, the S&P 500 has been in a range for the last four days between 5,450 and 5,490. It's around 5,460 right now.
I picked up some new positions today. I bought shares of LUV stock in the main account as well as some options for BBY. In the options account, I bought the options for LUV. And in the double down account, I bought shares of BBY stock.
The reason I got more BBY positions after having already bought some yesterday is that it qualified for my double down trading strategy. That occurs if a given stock qualifies first for my main trading strategy, and then quickly goes down in price. It's not great news for the initial position when that happens, but back tests suggests it might offer a new opportunity to profit from buying another position.
When I buy double down positions, they are completely independent of the original positions. Even though it's for the same ticker, I manage the trades as if they're not. Each trade has its own individual rules and exit criteria.
If you have any questions or feedback, I'd love to hear from you.