03/11 Daily Summary

We keep moving higher despite intra-day pull backs, like a reader pointed out Yesterday, the only thing not fully engaged on this price action is volume. Tomorrow I am planning to exit my NDX butterfly from last week and will keep this week’s position for one more week. Next Monday I’ll enter my traditional NDX and MNX iron butterfly as well as the weekly positions, I’m thinking about replacing the weekly butterfly with a weekly iron butterfly trade, simply because I’m more used to getting in and out of iron butterflies than I am with butterflies.

03/11 NDX Fast Butterfly (from 03/08)

This is a great example on how the hedge-recover strategy can help soften the damage of the trades that do not work. This butterfly would be stopped out under my original idea (-8% ROI), however, because I hedged the trade it is now showing me -4% ROI. Once again, the recovery butterfly is not yet helping, as the hedged+recovery position is down -4.5%.

03/11 NDX Fast Butterfly (from 03/01)

If you have been following this weekly butterfly strategy, I made a tweak last week with adding a hedge-recover process instead of a flat stop loss at the -8% level. This has kept me in the game on last week’s butterfly. I have to exit the position Tomorrow and record the findings.
One of the things that called my attention is the fact that the recovery butterfly didn’t help much this time around, look at both my charts, if I had just hedged the trade, it would be in the green by now. My recovery butterfly is actually damaging the position. I will have to back-test it once again and look at what is the difference if I’d simply hedged the trade instead of adding the extra capital for the recovery. This could be an exception and I don’t want to adjust my trading strategy based on one month, specially because NDX is moving higher and the vols are staying relatively high and Yesterday it actually moved higher as well.

03/11 OEX Weekly Iron Condor

OEX moved higher once again. This is the second week it comes down to Friday, hopefully we won’t have a repeat of last week’s Friday, when we pushed over 1 st. Deviation higher. We’ll see Tomorrow for sure.