"The only way to trade with Fibonaccis" journal

10/7:

SPY -$44,631.00
hedge -$59.80

Net for this trade:

-$44,690.80 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
+$3,561.93 (estimated dividend)
+$5,221.55 (realized)
------------------------
-$30,622.31

 

10/10:

SPY -$22,572.00
hedge -$1,049.80

Net for this trade:

-$23,621.80 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
$3,561.93 (estimated dividend)
$5,221.55 (realized)
------------------------
-$9,553.31

 

10/11:

SPY -$21,888.00
hedge -$1,089.40

Net for this trade:

-$22,977.40 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
$3,561.93 (estimated dividend)
$5,221.55 (realized)
------------------------
-$8,908.91

 

10/12:

SPY -$15,903.00
hedge -$1,333.60

Net for this trade:

-$17,236.60 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
$3,561.93 (estimated dividend)
$5,221.55 (realized)
------------------------
-$3,168.11

 

10/13

SPY -$17,271.00
hedge -$1,267.60

Net for this trade:

-$18,538.60 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
$3,561.93 (estimated dividend)
$5,221.55 (realized)
------------------------
-$4,470.11

 

SPY -$5,529.00
hedge -$1,762.60

Net for this trade

-$7,291.60 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
$3,561.93 (estimated dividend)
$5,221.55 (realized)
------------------------
$6,776.89

In the positive.

 

At one point you were down over $60K, did you have any sort of stop loss or exit plan?

 

The quick answer is I'm not using margin so I was never in danger of blowing my account or anything.

10/17:

SPY -$18,867.00
hedge -$1,241.20

Net for this trade

-$20,108.20 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
$3,561.93 (estimated dividend)
$5,221.55 (realized)
------------------------
-$6,039.71

 

I wasn't asking if you were in jeopardy of blowing your account.

At one point you were down over $60K, did you have any sort of stop loss or exit plan?

Thanks!

 

Oh, my bad. Usually when people ask about exit plans with average down strategies it's because they're worried about blowing their account.

There is no exit plan in the sense of "take a hard loss at a certain point." Dividends and hedges soften the blow, and I don't really have any issue with holding drawdown for a while, especially when I'm getting paid (dividends) to do so.