EPISODE 8; X4V14 Trading Strategy
Returns of this trade: This trade earned a profit of $2,586 on $22,500 planned capital for a return of approximately 11.4% in less than 60-days*
Description of this trade: Simple, very conservative 60/40 broken wing butterfly strategy on the Standard and Poor 500 (SPX) index. To clarify, it is a 60 point lower wings and 40 point upper wings.
Trade Entry: 77 days to expiration
Example size: The example is a 10 lot which means there are 10 butterflies. The planned capital or the maximum amount we will allow in the example trade is $22,500.
Trade Adjustments: Down adjust underneath the short strike or if downside risk becomes excessive. Up adjust if the position turns negative Delta.
Profit Target: 11.1%
Date Exit: Is when the trade cycle date is two cycles ahead. For example, for a trade with a March expiration cycle, when the May expiration cycle hits 77 days to expiration the March expiration cycle trade is exited.
Exit Loss Trigger: 11.1% of Planned Capital
Maximum Trade Duration: Approximately 60 days
Overlapping Trades: Yes, up to 2 at a time
We love this trading strategy because it is simple to manage and it does well in a very wide variety of market conditions.
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LEARN THIS TRADING STRATEGY!
The X4V14 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 do very well in neutral market conditions.
This rule-based strategy has a minimum capital requirement is $2,250 per trade and takes about 15 minutes a day to manage. Click here to learn more!
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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 3 and above to focus on.
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Returns of this trade: This trade earned $3,855 on $35,000 planned capital for an 11% profit in 60-days*