How to Create a Trading Plan | Step By Step Guide - Part 3 - Core Trading Strategies
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- Опубліковано 5 чер 2023
- How to create an trading plan using options and futures! This step by step guide will help get you started on your trading journey!
Take the time to develop YOUR own plan using these guidelines and ideas and it will help you become more consistent and profitable in your trading!
In part one, we covered goals, the Greeks and risk rules.
In the second part we cover our trade rules and position/strategy sizing.
Here in part three, we will include the specific core trade strategies I used to generate over 80% returns last year.
To see my trades live and for more advanced trading education, visit mrtoptick.com/income-navigator.
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Whether you are a seasoned trader or just starting your journey, this video will provide valuable insights and recommendations on which trading strategies to add to your portfolio. With the right trading plan, you can achieve your financial goals over time.
If you enjoyed this video, make sure to subscribe ✅ to this channel!
DISCLAIMER:
Not Financial Advice, this content is for Entertainment and Educational Purposes Only. All financial decisions made by the viewer should be done after talking with a licensed professional.
If this works, best video ever. Will try. Thank you!
Very informative. Thank you so much Tom! Learned a lot and will incorporate these thoughts and ideas in my trading.
For the most part, I agree with this plan and the deep thoughts you had on Margin usage, daily theta etc. Hoever, I think you carry too much risk with your SPY/ES Index options. Of course, when the market runs sideways or goes up, everything is fine. But usually once in a year with have a sharp, temporary downward move with a huge spike in Volatility. This would probably trigger at least a 25 k draw down considering the amount of short put positions you have on the US stockmarket. I would diversify at least the LEAP position and sell PUTs on TLT, GLD, USO etc.
Fantastic three-part series! Glad UA-cam funneled me to Tom’s channel.
seriously, thank you so much Tom. We've learned a lot from you. You inspire us all to be successful and consistently profitable traders
Awesome!
Best video I have ever seen on trading. Great job putting this together Tom. Very informative!!
WOW! Thanks for the feedback!
Great video. Anyone selling options on futures should watch this and create their own trading plan
Thanks Lance!
Well done Tom, Thank you!
Thank you so much ... Very generous of you.
Great stuff. Thanks!
Great video as always, Tom. Hope to see more to come and continue learning from you
Thank you Tom very informative
Much appreciated for this educationnal video
Thank you so much Tom!!!! you gave all these great info for free.
Tom, thanks a lot. Really learnt a lot from you, big thanks for your transparency and complete sharing..
Love it. Very good advice. I like the way you 'diversify' by taking similar strategies that target different products. And diversifying through time in a mechanical way is very special.
Dear Tom, Exceptional presentation and sharing of your well-honed strategies! Much appreciated help, cheers!
Awesome. Glad you are enjoying the content!
Great one. 👍 Thank you!
Thank you!
Great stuff Tom thanks so much
Awesome! Thanks!
Just got done with your 3 part plan. Excellent learned a lot. And now I know how you're doing your core trades so you can ignore my other comments asking how you do your weekly GC and ES ;)
Such good videos series, really like that 1-1-2, I'll see inside soon.
Great stuff as usual Tom! Have learned SO much from you and the others in the group! Learning to fish is the key!
Awesome Rod! Its been awesome seeing the gains and return you are making!
Tom, thank you so much for sharing your knowledge and expertise, and for your incredible content. Truly appreciated! When you say you will close losers at 2x "max loss", you're just referring to 3x your credit received, right? As opposed to actual max loss. Thanks.
Tom, thanks for posting this informative video! I'm intrigued by all 4 strategies. I look forward to more videos in this series.
Outstanding video/strategy/teaching...I have a quick Q....when you mention u have 4 on at all times and take the most profitable off and put the new one on, are you having 4 on max as total ES and GC or 4 each...thanks in advance for clarifying this for me...
Tom, Thanks so much for these videos. Tremendously helpful. Question for you regarding setting your stop losses. Do you do this immediately after putting on the trade or do you manually stop out your losses? I use Tastytrade and can't set losses for strangles, only limit or market orders.
One of the best investment advice video out there. Thank you!!!
One concern I have is, 3 out of 4 strategies are based on the SP500 (SPY, leap, ES Lt112 and ES/GC strangles), is it too much ? I understand its all "protected" by stop order, and the SP500 tend to move up over time. Does it make sense to apply Strategy #1 on GC and maybe CL instead of ES and GC ??
Thanks for the informative video. On Strategy #2 you wrote that for a losing trade you take assignment, if advantageous. Since we are talking about /ES I assume this rule does not apply? Thx
Great video. It was unclear to me how you would adjust the short puts on the 1-1-2 trade by locking in a credit. Are you rolling the puts closer to the money? I suspect not, but I’m confused how you would get a credit.
Could you clarify the closing of losers? How are you calculating close at 3x stop (2x max loss)?
Would you use Es instead of SPY if we use and IRA account?
For the weekly strangles, my account is not large enough for GC. Could I use /CL and /mes in place. I assume /mes wouldn't be an issue. Would /gc iron condors be better than /cl?
Anything you would do differently in a qualified account, or just know that you will be using 2x the BP for each position and adjust accordingly? Seems like ROI would be severely limited with some of these strategies in a qualified account.
@TommKing13 When your 112s get into the trap early, do you just close the PDS and take the profit? And then let the naked put ride? Like corn right now if you had placed it a few days back?
I'm having a really hard time getting filled on the m e s weekly strangles ... Very little open interest and volume.
Suggestions?
Is is OK to leg in to the MES strangles to try to get a better fill?
Also, re LEAP puts .... I am doing them on PLTR, since it is a lower priced stock with high vol ... that I am willing to own.
Thanks in advance.
Would you consider doing a video and/or doing a special program for smaller accounts?
Do you recalculate Delta and Theta daily in your sheets - or are you just recording them when you put the trade on?
...for LEAP puts?
What does 3x stop loss (2x max los) mean?
Hi Tom
I am enjoying your videos. I went to the website that is linked and saw that the person who seems to run the site is named Igor. Are you directly involved with this site and are there any educational topics to be provided. Or is everything handled in discord?
Mark
Yes, Igor is a great trader and it is his service. I cannot recommend it enough for education and trading. Everything is handled in Discord.
Trying to paper trade the 90DTE strangles on TOS using /CL, /RTY and /ZS. Can't seem to get any takers on my trades, I'm using the .07 and .06 deltas. Do you think it's because of paper trading or is it because the expiry is in a new contract? Tasty doesn't paper trade so I' not sure if its the broker or not. Any thoughts Tom on why this is ? Thank you Sir
Probably paper trading issue. You should not have issues getting filled on those tickers. Maybe RTY a little.
Tom, are you closing a loser LEAP put at 3x the credit received? The slide shows "2X Max Loss", which isn't possible.
I would close losers at a 2x max loss.
what is the 3x stop loss (2x max loss) for the strangles? max loss is theoretically infinite in a strangles.... thanks
The max loss that I use on strangles is 2X the credit. That is where I will close the trade. Your max risk is letting it go to 0. My loss target is to not let it get past a 3X stop/ 2X loss.
@@TommKing13 ok that means if you get out of trade for loss at 2x the credit or at 50% of credit for a win that means your risk to reward is 4:1? ex: sell strangle for 100$ credit, loss would be 200$ and winner 50$ correct? and that as been profitable for you in the long run?
Hi Tom, where do you get $3500 BP on /ES contracts? In Tasty overnight margin requirement for /ES is $12k! Same with /GC, overnight requirement is much higher.
Was wondering if you ever got a reply?
@@mossada30 yes. I am in the discord now. Best Groupe ever
You are looking at the margins for future contracts which is around 12k. Tom is doing futures options which is defined by your broker.
Tom, excellent information. If its possible you should also post on instagram.
enjoyed this 3 part series. big fan of tastytrade platform. sibscribed
👍👍👍🔥
Great video, thanks Tom! I was wondering why you prefer /ES to SPX, if you could comment on that. Thanks!
ES Futures require a lot less buying power. SPX would require a very large account. I like the leverage I get from trading futures. But you also have to be aware of the span margin risks as well.