Am I missing something?

[Robert Morse]

Daytrading ITM SPY options is very tough from a slippage stand point (besides the other obvious difficulties).

You'ld be better off getting comfortable with futures.

I agree and suggested the same however it is easier to scale your size at the start of the journey with SPY than ES.

 

[Turveyd]

For a position perspective, your guessing at a bottom, try reducing the level of which you enter so not so big a move so far but then joining the direction, betting on continuation is better than reversal and picking a bottom with a SL.

Run the maths see if it's any better, likely think just after US Open, or other times, where market likely to pick a new direction, might get you 3:1 profit ratio aswell.

 

[Muffhands]

Thank you all for the awesome input, and especially RM for taking the time to speak on the phone. I will keep you all updated as to how my strategy works out.