It was a back-and-forth week for us at SPX Option Trader. We ended this past week with +208% in our SPX Late Day Trader, -42% ROI in our SPX Daily Outlook trading, -32% ROI in our SPY Daily Outlook trading, -129% ROI in our SPX Aggressive Trader, -114% ROI in our SPY Aggressive Trader, and -148% ROM in our SPX Spread Trader. We ended the month of August with +348% in our SPX Late Day Trader, -45% ROI in our SPX Daily Outlook trading, -34% ROI in our SPY Daily Outlook trading, -365% ROI in our SPX Aggressive Trader, -333% ROI in our SPY Aggressive Trader, and -193% ROM in our SPX Spread Trader.
It was a good week and month for the Late Day Trader. However, we experienced drawdowns in all of our other strategies this month. Drawdowns are never pleasant, but they do happen. For our Daily Outlook this is only our third down month in over 2 years. No one wins all the time in trading. There are never any guarantees in day trading, and there are times where the market moves defy explanation or the best of projections. There are time periods where every trade seems to be wrong, and others where every trade hits it perfectly. These up and downs are a part of day trading, and a trader must be prepared for it. It is easy to trade when every day is a winner, and the gains are huge. It is more difficult when there are multiple losers in a row.
When drawdowns happen, many traders get very concerned and want to start changing their approach. But there is nothing wrong with our approach, we don’t change anything because of a few flat or down weeks. Drawdowns happen, every trade is a risk and sometimes things don’t go as we expect. The secret to our success is to stay consistent with our winning strategy. As we do, we are able to weather the drawdowns and be profitable over the long term. We look forward to a great week and month of trading ahead of us. Below are our comments for each day of this past week:
As a reminder the markets are closed on Monday, September 2nd. Normal trading activity will resume on Tuesday, September 3rd.
This content is for members only.