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

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 | 1415 |

Overall Statistics

Total Trades Open Positions Wins Loses Win Rate Cumulative Premiums
15 1 12 2 85.7% $579.46

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 | 78 |

Overall Statistics

Total Trades Open Positions Wins Loses Win Rate Cumulative Premiums
8 0 7 1 87.5% $1590.71

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 | 23 | 4 | 56 | 7 | 8 |

Overall Statistics

Locked In Profit: $2593.76 (from 2 trades)

Trade Type Open Positions Closed/Expired Cumulative Premiums
LEAPS 6 2 -$24,891.86
PMCC 1 11 $713.03
Overall -$24,178.83

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 
  • 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 | 

Overall Statistics

Trade Type Open Positions Closed/Expired Net Premium
Put Credit Spread 0 1 $ 162.84
Long Put 1 0 -$151.90
Overall $10.94

Archived Strategies

I’ve decided to discontinue using these strategies in my options trading.

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

Total Trades In Progress Wins Loses Win Rate Cumulative Premiums
3 0 3 0 100% $247.47