Hey Guys,
It's been a busy morning. The market has pulled back some, and that triggered a lot of trades.
I bought stock in WM and WSM. I also picked up options for ULTA. In my extra options account, I grabbed options for EBAY and MSFT too. Notice that the ULTA and MSFT options have an expiration of this week, and the EBAY options have an expiration of next week.
On top of that, I picked up two MES futures positions. When the close of the S&P 500 is near the low of its prior week close, there is a back-tested edge to going long. So that is the first one I bought. Then the second one that triggered is the same one that hit yesterday: going short if the S&P 500 goes down 1 ATR from the prior day close. That short position has a really skinny stoploss (on purpose). So as of right now, I have both a short and long position open, and for the moment they are kind of offsetting each other. This page talks about how I combine futures positions.
I also had three stock positions reach their time limits: TSN, D, and NUE. All three closed for a loss. Late last week there was some promise showing for a couple of those tickers, but the tide turned, especially for Dominion. If you followed me on those trades, notice how it feels to take the loss on all three at once. Is that something you can handle? It's not abnormal to take losses according to back tests, so being able to live with losses like these might be the key to reaping any potential long term rewards from this trading approach. It can be a challenge because there is real risk involved.
If you have any questions or feedback, I'd love to hear from you.