Tackle Today: 2019: The year of the Condor | Tackle Trading
“Is it?”
If 2018 was the year that RUT Condors almost faced extinction, 2019, so far, has been a great one for this Theta strategy.
OK, at least since February. Let’s not include January into the blessings because that rally looks suspicious.
The RUT has been sideways crossing up and down the 200-MA like a maniac, but sideways, nonetheless. One could argue that the chart has a slightly bearish tilt to it since it is showing timid lower lows and lower highs. If it breaks the $1460ish support, hell’s gonna break loose.
Despite the good-looking chart, if you mismanage or micromanage a Condor you can kill it just the same even if the chart is textbook-perfect. Having no rules is bad, however, having too many of them is just as bad. Delta rules, support/resistance rules, hedging rules, rolling up/down rules, rolling out rules, Gamma rules, so on and so forth. Which rules are you following to enter a Condor, manage profits and hedge losers? Are you following the rules, by the way?
That is when a premium system comes in. Not only that but a premium system together with monthly MasterMind Groups with the system architect himself. I am talking about the Cash Flow Condors system and Coach Tyler Craig.
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PS: I got a confession to make. When I was a novice, I got greedy and killed 7 Condors all at once. Let’s talk about trauma. Father Guido Stockaducci, help me, please.
Chart of the Day: RUT
The Iron Condor is a neutral strategy. The underlying asset, in this case, the RUT, has to stay range-bound, ideally. But the chart is only the chart. Portfolio design, position sizing rules, and system rules must be in place so you can be profitable long-term trading this strategy.
Video of the day: How To Build a Safe Iron Condor
Coaches Tim and Cody work their way through the Tackle Trading Spreadsheet and teach students how to build a proper and safe Iron Condor.
Trading Justice Episode 342: Aftermath
In this episode of the Trading Justice Podcast, we discuss the book ‘Aftermath’ by James Rickards. This book examines the state of economics today after the financial markets crisis forced bankers to drop interest rates drastically and print money to inflate asset prices. Listen to the episode on the player below.
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Originally published at https://tackletrading.com on October 9, 2019.
