This forum is for students of the Bearish Butterfly trading strategy to share information.

2021 Adjustment?

1 reply, 2 voices Last updated by John Locke 1 month, 2 weeks ago
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    • #17516

      John Locke
      Going to The Trading Triangle LIVE 2016Locke In Your Success CoachAPM2Trade JournalsUltimate Income Trader Workshop

      Hi Maarten,

      Most of the time adjustments on the Bearish Butterfly are 0 to 6 adjustments in a given 56 day cycle. During certain market conditions however, particularly with extended bullish up moves, there can be periods where adjustments may be triggered daily. The record, and unsustainable bullishness of the 2020/2021 market has been one of these periods. Daily adjustments would not be a characteristic of the strategy under the majority of market conditions.

      Regarding strategy updates, the way we are currently trading the Bearish Butterfly on Options Trading For Income is by the guidelines stated in the program within the 2020 update. The wing width in the update remains at 50 points.


    • #17508

      Maarten Foubert
      Points: 15
      Rank: Newbie


      I just purchased the bearish butterfly trading strategy to get my feet wet, I also reviewed the 2020 adjustment video. I have done some paper trading in the ONE software but was discouraged by the almost daily adjustments that had to be made. Then I saw in a recent video that the wings are now $80 long (from the original $50) which makes sense with the increase in RUT price. But are there any other adjustments to the strategy? Are the points you do the 2nd and 3rd third diff? What about the rolling points, the delta limits and delta/theta limits?



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