Strategy Tester

A successful strategy requires time to prove itself.

While a strategy may look flawless on paper, real-world results depend on actual trades, where factors like emotions come into play.

To minimize the impact of emotions, a solid trading plan should be as mechanical as possible.

That’s what I aim to showcase here. On this page, I document every trade made using a specific strategy so you can see its performance in action.

My goal is to reach at least 100 trades, providing a meaningful sample size for evaluating the win rate.

For the first 10-20 trades, there will be some fine-tuning of the strategy, which could impact the win rate or potential losses. However, over the course of 100 trades, those effects should balance out.

Important Note: The strategies listed here are currently under development. Please conduct your own due diligence before implementing any of them in your account.

Strategy 1: 45 DTE Put Credit Spread on SPX

Complete Guide: Here

Application of Strategy: Here

Max Capital Allocation: $15k

Conditions: Only enter a trade on down days. 

Parameters:

• Initial position: Short put at 0.25 delta, $25 width
• Second position: Short put at 0.20 delta, $25 to $50 width
• Subsequent positions: Short put at 0.20 delta, $50 width

Trade Proof on X: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 |

Overall Statistics

Strategy 2: News Events Trade

Conditions:

• A company with strong fundamentals, such as consistent or growing EPS, that you'd be comfortable owning
• Substantial drop/rise following a news event, such as a quarterly report, analyst downgrade, or other developments
• No quarterly earnings reports scheduled within the next 30 to 45 days
• A strong support level established at a specific price point (optional)

Parameters:

• 30 - 45 DTE
• Bullish Strategy: Put Credit Spread ($20 - $50 wide) or Cash Secured Put between 0.10 - 0.20 delta
• Bearish Strategy: Call Credit Spread ($20 - $50 wide)
• Buy to close at 30-50% total premium received 
• If strike tested:
  • Accept assignment as part of the Wheel Strategy
  • Roll down and out (ideally for a credit) if not ready for assignment 
  • For Credit Spread - exit/roll latest at 14 DTE 

Trade Proof on X: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

Overall Statistics

Strategy 3: Deep ITM LEAPS Call/PMCC

Conditions:

• A company with strong fundamentals, such as consistent or growing EPS, that you'd be comfortable owning
• Significant drop after a news event as entry opportunity, with long-term fundamentals remaining strong
• A strong support level established at a specific price point (optional)

Parameters:

• At least 1 year DTE
• Deep ITM Call at 0.70 - 0.80 Delta
• Sell Covered Call following a rally in stock price at breakeven price or above 
• Exit condition: 
  • Bull case:
    • Exit when stock reached 0.90 delta. If super bullish, roll long call back to 0.80 delta instead to lock in some profit.
    • When short strike tested, close both long and short call.
  • Bear case: Exit at 90 DTE remaining

Trade Proof on X: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |

Overall Statistics

Locked In Profit: $6720.30 (from 4 trades)

Strategy 4: Financed Protective Put Ladder

The objective of this strategy is to construct a few long put ladders. In the event of a market crash and an IV spike, these long puts can be harvested to mitigate the portfolio losses incurred from other bullish strategies.

The long puts are financed through a put credit spread on the SPX. The objective is to close the credit spread at a 50% profit target and utilize these profits to finance the purchase of the long put. Hence these are considered "free" protection. 

Parameters:

• SPX 45 DTE Put Credit Spread: $50 wide spread at around 0.10 delta to generate around $300, exit at 50% using GTC order 
• SPY Long Put: 80-90 DTE for around $150
• Scale the amount above according to the size of your portfolio or the desired level of protection.
• This strategy is work in progress.

Trade Proof on X: 1 | 2 | 3 |

Overall Statistics

Archived Strategies

I’ve decided to discontinue using these strategies as they don't align with my personality. 

0 DTE SPX Gap Hunter

Complete Guide: Here

Conditions:

• Market gap up or down (> 1% change in price)
• Clear resistance or support established by mid-day on 15 min chart

Parameters:

• 0 DTE
• Call Credit Spread or Put Credit Spread at 0.10 delta, $20 width
• Buy to close at 30% total premium received 

Trade Proof on X: 1 | 2 | 3 |

Overall Statistics