YaKa

SP500 - Two Extreme Paths & Money Management

FX:SPX500   S&P 500 index of US listed shares
248 2 7
These 2 paths are the extremes for the next 5 months.

Running a short stance, I need to have a position that survives 2155 by end of Mar15.

In both cases, I should have a pullback to 2050 by end Apr15.

If SPX             trades 2150 before it trades 2050, I will be in recovery mode and would exit at 2050.

Monitor the VIX             second contract:
- Now at 17.10, if it crosses below 16.40, SPX             could be on the blue path.
- Although I would recover the loss/make some money at the end, my trade idea would be wrong and it have used risk for too long in negative territories.
pezq PRO
2 years ago
Apologies, Yacine I'm not sure what you are suggesting here. I have been following your idea for some time. One wonders what global scenario is going to shake the market out of complacency....
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YaKa PRO pezq
2 years ago
Hi Pezq,
This was just a money management email for short or a maximum target for longs.

in this particular post:
- I am suggesting nothing.
- I illustrate the two extremes scenario and as I am playing short, I evaluate the worst case for my position and prepare myself psychologically so 2155 in 4 weeks does not surprise me too much so i dont capitulate when the market is about to give a 5% correction.

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