I will be using multiple strategies in this trading contest. Intraday strategies will include opening plays, directional day trades, and reversion to mean trades on Dow stocks and financially related futures contracts.
My overnight positions that have a long bias will consist of short term butterfly spreads of two weeks or less until expiration and will be structured so that my maximum profit potential will be above the underlying price when the trade is entered. Although I will be still using money management on these trades, generally my maximum risk will be the net premium paid.
On my overnight positions that have a short bias, I will either buy short term VXX calls of two weeks or less or short a index where position sizing will take into consideration the possibility of a 5% adverse overnight move.
I will detail the thought process behind my trades. This will include my reasoning to enter the trade as well as trade management.
