Description of this trade: The X4V22 is a market-neutral income strategy designed to be used on the Standard and Poor 500 (SPX) index. It is one of three primary trading structures within the X4 Training System it is designed to maximize results in neutral to bearish market conditions. The X4V22 is a bit more active and complex than the other X4 strategies however it is the highest returning rule-based strategy within the X4 Training System.
Minimum Capital Required: $3,500 per trade
Example size: $35,000 planned capital
Profit Target: None. In general, I’d expect a good month to return well over 10% of planned capital
Exit Loss Trigger: 7.1% or $2,500 for this example
Entered Trade: 77 days to expiration; Usually entered as a butterfly with a call option
Trade Duration: Up to 60 days. Will exit when the expiration month, two cycles out, is 77 days to expiration, unless one of our risk management rules happens which indicates to end the trade earlier than that.
Trade Adjustments: Yes, roll up and roll back
Overlapping Trades: Yes
Why do we love this trading strategy? This trade is resilient to downside market movements.
LEARN THIS TRADING STRATEGY!
The X4V22 trading strategy is one of three trading strategies that are taught in the very comprehensive X4 training system which is designed to be traded on the Standard and Poor 500 index. It is designed to maximize results in neutral to bearish market conditions. It is a bit more active and complex than the other two strategies however it is also the highest returning rule based strategy in the X4 training system.
This rule-based strategy has a minimum capital requirement is $3,500 and takes about 15 minutes a day to manage. Click here to learn more!
FOLLOW THIS STRATEGY!
Become a GO or a PRO member to follow this trading strategy on the Options Trading for Income by the Guidelines weekly webinars. This trading strategy is for Trading Success Blueprint traders in Stage 4 and above to focus on.
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*The result shown is from real-time, hypothetical trades such as those shown in the Options Trading for Income weekly webinar. Simulated trades are believed to be represented as accurately as possible, however, live results may have been different. The result is shared as an example for educational purposes ONLY.
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