Saturday, November 5, 2022

Optimizing Strategies

I came to the realization I've been trading in and out of a lot of winners on my 52 week breakdowns setups when it would be better overall to just hold multi-day. It takes a lot of precious time to enter orders and set stops even if I use stop orders to buy I have to think about the whole thing. I was actually short LUNG a week or two ago and took it off radar. It just dropped like 30% or more in one day on Friday. I think I was short CVNA too it dropped huge too. But even the lower market cap ones that have been my bread and butter just keep dropping too even without any significant green days. To offset overnight risk I want to just diversify and I'm sure I will catch oversized moves in some to make up for the overnight risk. I incorporated gap downs into this scan too and it's kind of the perfect number of daily charts to screen through to cherry pick.

I just went through my setups with the most trades overall to look for positive expectancy. All are over 20 trades most over 30 or more. TLT options is 17 and it has promise so I am going to keep at that one. My best ones are 52 week breakdown, supernova shorts, long bull flags, USO options multi-day. I'm going to have to back off IWM intra-day becuase I tend to overtrade it even though I do get good winners out of it. I've noticed the best setups on it are usually at key support levels at low of day or high of day anyway. Too much chop and you never know when it will start but it always does for sure after 12:30pm.

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