Scale in trading strategy wins! A scale in trading strategy is one that involves entering partial position size and then increases size as price moves against the position. In an income strategy, scaling in will, ideally, allow for a greater range of price movement against the position with less draw down to increase the probability of winning.
The Bearish Butterfly trading strategy takes advantage of a variety of markets such as over extended, up trending markets, volatile sideways markets, as well as volatile down trending markets, and smooth down trending markets.
Returns of this trade: This trade earned approximately $5,840 or about a 11.7% gain on planned capital!*
Minimum Capital Required: $5,000 per trade
Example size: $50,000 planned capital (Planned capital is the maximum amount we are expected to get in the trade.)
Profit Target: 30% (or $15,000 for this example). This trade has a reduced profit target of 10% should the trade get 21 days to expiration (DTE).
Exit Loss Trigger: 30% (or $15,000 for this example)
Entered Trade: 56 days to expiration with 50 point wings with the short strikes approximately 20 points below the money.
Trade Duration: 35 days for this example
Trade Adjustments: If the market comes down too far, scale out or roll the position back. If the price goes up there are a series of price points where we adjust and add to the strategy.
Overlapping Trades: Yes
Why do I love this trading strategy? Can often play a bearish opinion and still win even with large moves against the position!
LEARN THIS TRADING STRATEGY!
The Bearish Butterfly is a rule-based trading strategy that is designed to maximize results in very choppy and bearish market conditions on the Russell 2000 index. The minimum capital requirement for this strategy is $5,000 with a profit target of 10% to 30% which takes about 30 minutes a day to manage. Click here to learn more!
FOLLOW THIS STRATEGY!
Become a GO or a PRO member to follow the Bearish Butterfly trade as it flies high! This trading strategy is featured on the Options Trading for Income by the Guidelines weekly webinars along with eleven other options trading strategies. This trading strategy is for Trading Success Blueprint traders in Stage 4 and above to focus on.
SEE OTHER BEARISH BUTTERFLY WINNING TRADE EPISODES!
Returns of this trade: This trade earned about $7,300 or about 14.5% profit in 35 days.*
Returns of this trade: This trade earned earned approximately 17% gain in 39 days through a down move of over 40% in the RUT followed by a bounce of over 200 points. AMAZING!*
Returns of this trade: This trade earned about $11,592 profit or approximately 23% gain in 38 days.*
Returns of this trade: This trade earned about $10,000 profit with a maximum capital in it of about $16,000 or about 60% of actual capital.*
Returns of this trade: This trade earned about $10,000 profit with a maximum capital in it of about $19,000 or about 50% of actual capital.*