Play100 - Trading System

Copyrights: sleekOPTIONS.COM

Disclaimer: The sole purpose of this document is to introduce you to a sample trading system that uses both 'Position Size' and 'Money' for Risk Management. The rules defined here are not a trading advice. Consider this as a sample trading system for learning purposes. After reviewing, feel free to create your own system based on your risk tolerance, trading style and capital available. Merely following a trading system does not guarantee any success as success depends on a lot of other factors. However following a trading system may help you with risk management and discpline required for options trading.

You can either set up an excel sheet or log your paper/real trades in sleekoptions.com by creating your journals in order to manage, monitor and measure the peformance of your trading system. Feel free to modify this system to suit your personality, trading style and initial capital available.

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This trading system adopts the original 'ProfitCycle' System for money management with some minor changes.



Minimum Account Balance:
3k or more is ideal for this trading system.
Style:
Super Aggressive. Account Growth is the focus of this risky trading system.
Focus Symbols:
Pick 2 Focus Symbols. Dont change your focus symbols for 6 Months. Trade only from your focus symbols.
MultiLots Method:
Yes. This trading system uses 'MultiLots' method.
Starter Lot:
You will take one starter lot position for $50 from Dip-B or Dip-C setups triggered for any of your Focus Symbols. Skip those alerts where the option price is lesser than .15 cents.
Second Lot:
Add second lot in the same direction from Dip-C Medium or Low Risk setup for the same symbol in the same direction. Expiration and Strike can be different from Primary Lot. Add second lot only if your primary lot did not peak 40% after they were posted and you are currently in a loss. Skip those alerts where the option price is lesser than .15 cents.
Protection Lot:
None. Protection lot trades are not applicable for this trading system.
Maximum Investment Per Trade.
No more than $100 per trade
Maximum Market Exposure.
Only 2 open positions at a time.
What type of Option Contracts can we trade for this Trading System?.
You can trade both CALLS and PUTS for this trading system. As a variation, you may want to trade either only CALL alerts or only PUT alerts to further narrow your focus.
Logical Accounts:
Only 1 account. Capital Account.
Number of Consecutive Trades from Capital Account:
Two. Two consecutive trades completes the 'ProfitCycle' and you will be starting a new ProfitCycle. If you are using journals in sleekoptions.com to record and manage your trades, create a fresh journal evertime you start a new round of ProfitCycle. You can name your journals 'ProfitCycle1', 'ProfitCycle2' and so on..
Minimum Investment for the second trade from Capital Account:
70% of the Proceeds from your first trade. For example: You invest $100 in your first trade. Assuming you made 200% profit. Your second trade from capital account will be for 70% of $300.
Exit Strategy for Capital Account Trades when trade is in Profit
Hold until the current trend is broken.
Exit Strategy for Capital Account Trades when trade is in a Loss
1. Stop loss at 40%.
When do I add Second Lot?
This trading system doesn't use 'MultiLots' method.
Multiple alerts are posted in the same direction. What should I do?
When multiple alerts are posted in the same direction, and if you are already in a trade in that symbol, ignore the alerts. If you are not in the trade, you can decide to get a starter lot in one of the alerts.
Multiple alerts posted in different direction. What should I do?
When multiple alerts are posted in different direction, and if you are already in a trade in that symbol, you can add starter lot trade in the opposite direction. Consider this as a fresh trade and apply the same exit rules as you would apply on a new trade. For example: Let us Say you have MSFT CALLS which is currently in profit and MSFT PUTS Primary Setups are triggered, consider MSFT PUTS as a fresh trade and enter starter lot.
New Alert is triggered when I already have a open position. What should I do?
Ignore those alerts.
An alert is 2 days old but has not moved much and has not expired yet, can I trade that alert?
No. Wait for a fresh alert.
Any other trading systems that are similar to this?
Check out the below

None. But watch out for this space.








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