EEMANI - collect money strategy 1

1 авг. 2020 г.

This strategy is for stock market ONLY

Strategy: EEMANI ... Collect the money by selling Credit spreads - Tested on SPY index weekly options


This strategy is based on consecutive up and down strategy which is available in TradingView Built in indicator. list, i have added EMA filter to that.

Tested on SPY Hourly chart
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ENTRY:
1. when price is consecutively up 3 bars and price is close above EMA (defualt EMA is 8 )
2. consider selling PUT nearest weekly ( SPY weeklies are available for Monday, wednesday and Friday)
Example: if the signal occurs on Monday or Tuesday , Consider selling Wednesday PUT spread
3. PUT strike one leg is mentioned on the chart when signal occurs ( calculate the second value based on your comfortable spread distance, either 5 points or 10 points)
( OR You can chose PUT strikes using a bollinger band --- strike below the lower band )

EXIT:
1. You can wait until the spread expires worthless OR
2. Exit if the short leg is 0.01 OR
3. Exit when 50% of the premium is evaporated (this is to avoid any sudden down spikes )
4. Script is configured to exit after 16 Bars. (that is maximum number of Hourly bars for two days)

StopLoss:
1. when the price touches the Put short leg (as mentioned in entry signal) --- close the position
2. OR when the price touches the Put short leg --- You can defense the position by certain percentage by converting it to IronCondor ,
that means, sell the CALL credit spread ... chose the strikes above upper Bollinger Band

happy Trading

Warning: for educational purposes only