12/22 Daily Summary

Today's upside continuation places the RUT condor in a rough spot, it is starting down the slipery slope and although not exactly 0.5 st. deviation, Today's spike on the 5-day price chart is close enough to 0.5 that raises a flag to me. A pull back is needed in order for the position to stay.

The MNX Iron Butterfly had a couple of rough days as well, but was able to keep most of its profits, now I will start doing vertical rolls if we keep pushing to the up-side.

Position's Details and Price action chart:
12/22 MNX Iron Butterfly
12/22 RUT Iron Condor

12/22 MNX Iron Butterfly

12/22 RUT Iron Condor

12/21 Daily Summary

One of the things I noticed about Today's upside movement was the lack of volume, this could simply be a factor of the Holidays season, or an indication that this up-side push won't materialize a new up-trend. I'm personally expecting the later.

My RUT position is still hovering around the break-even level, notice the 5-day volatility chart that this persistent upside has been keeping my profits at bay on the trade; Should we see a small pull back, the position will be good to cash out.

The MNX Iron Butterfly had its first set of adjustment done Today. I had a contingent order to cut a few deltas, and after it triggered I added another one to continue cutting in case we kept pushing higher, which we did. So I purchase 2 long FEB 185 Calls to keep these deltas at bay. The position gave back about 3% of its open P/L Today.

Position's Details and Price action charts:
12/21 MNX Iron Butterfly
12/21 RUT Iron Condor

12/21 MNX Iron Butterfly

12/21 RUT Iron Condor

2010 Goal: Revise and update trading plan

I mentioned this before, but I need to revise and update my original trade plan, it was put together in 2007 back when I was trading FOREX, the plan's structure is still very valid, but obviously a lot has changed since the plan was first put together.

Still in the subject of a trading plan, here is the template I used to create my own plan:
http://www.trade2win.com/media/knowledge/tim-wilcox/T2W_Trading_Plan_Template_2005.pdf

I plan on publishing my trading plan on this blog, but if you want to work on your own, the link above should help.

Cheers to our success!
Gustavo