I just realized that my adjustments are comming in earlier than the 10% I have in my trading plan. My thinking is that if I get to an ajustment point this week, it means something is out of wack with the trade, so I'll come in sooner instead of waitting to be down 10%. I'll check this with my mentors at Sheridan Mentoring. For now I'll live it like that, simply because if I hit an adjustment this week, it means XLE is on a move of well over 1 st. deviation on the volatility cone.
Contingent Orders:
- Up-side adjustment: Buy 3x APR Vertical 44/48 CALL spread if XLE on or above 44 (Day order)
- Down-side adjustment: Buy 3x APR Vertical 33/28 PUT spread if XLE or or bellow 33.50 (Day order)
Note that XLE's implied volatility has dropped by 10% since I put the trade, being vega neutral is helping me out right now.
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