Podcast – Episode 151 – How We Made 180% In First 4 Months of 2023

Podcast Transcript

I wanted to talk about, tell you, and show you basically how we made over 180% in the first four months of 2023. You heard that right. We made conservative trades and we’ve made, and by the end of April we made 32 trades and the total result was over 180%. Actually, the exact number was 180.42%. Now that’s pretty remarkable. And then it gets even more remarkable, because we had 32 trades, all of them were winners, none were losers, and none of them lost since the beginning of the year. Now, I don’t know how long this streak is going to keep going. And I don’t know what the record is for her like most winning streaks in a row. But this one is pretty remarkable. And I do think it’s going to continue. Now a little bit of background. This is for our weekly actually, it’s not even a weekly. It’s a one-day to expiration trade that we do on the SPX, we’ve been doing this for a long time. We were doing this for several years. But something occurred in 2022. That allowed us to not only upgrade it but to make significant changes to the system. So that not only do we get more trades, that we also get abilities to not lose money on every trade.

So I wanted to explain that a little bit and show you what we’re doing. So basically, it’s a one DTE or one day to-expiration credit spread on the SPX. Though what that means is we’re only trading SPX, which is an index is the S&P500. And we’d put the trade on today, and it expires tomorrow. So it’s one day, it’s basically overnight risk. And that’s it. And we are aiming for around five to 8% per trade. Now, as you can see the numbers I gave you, we did 32 of them, and we made 180%. So you can do the math and figure out how much we average per trade. And like I said, these are very conservative traits. And they make money and they’ve won, right?

So in February, we actually released this to a small group of people. So we, we explained this concept to on a live event we had, you know, a lot of people come in and watch. And we showed them what we’re doing. And we said, hey, if we want to actually teach this to people, because we want to do this same strategy in our hedge fund, and I need to create training for it, right? Because I need to train the people that are trading at the fund. And so I said, Well, I’m going to be creating the training anyway, why don’t I let some of you guys in so you can do it for yourself. So we’ve had about 35 people into the program, it’s sold out like like that. And all of them are having phenomenal success. So it’s been really exciting to share this with people.

And we are probably going to share it with more people because it’s just been so much fun. And because of the numbers and the liquidity and the volume, we’re going to be able to trade it for the fund anyway. So I don’t see any reason, at least right now why we cannot let a few more people in so they can do this for themselves. Like I said, it’s been phenomenal. Everybody’s been winning left and right. And the numbers are just crazy. So basically in February we showed them and we were explaining like Okay, so this is a a one day to expiration trade on SPX you do a credit spread, and we have a set pattern of how we trade it. Now, the most interesting thing is that, in 2022, the CBOE which is the Chicago Board of options in the CME which controls the SPX. They got together and they released weekly options for Tuesday and Thursday. So until then, we had weekly explorations that were happening on Monday, Wednesday and Friday.

But they introduced Tuesdays and Thursdays so now we have expirations on SPX that happen every single day of the week, that enabled us to do two things. Number one, it gave us more trades, right? Because if it’s a one day trade, if you want to do it on Tuesday, you can’t because there’s no expiration or like, if you want to do it on Monday, that expires on Tuesday, you can’t do it, because there’s nothing expires on Tuesday, you have to go to Wednesday, that gives you a little bit more risk, right? Instead of just one day, now you’re doing two days. So because of Tuesday, and Thursday expiration, now we have more trades that we can do. And we realized that because of this new thing, we can now adjust these trades, because not all trades always work out. So far, the four months of this year, it has been fantastic. But you know, we’re gonna have a losing trade, right? It’s just normal is trading, you’re gonna lose. So we’ve identified several different ways of potential adjustments. You know, if a trade goes bad, how is there a way to either get our money back and not have a loss or get adjusted in a way where you can still even make money. So what we wanted to do, because these are weeklies, and there’s so many of them, so many of the trades, we figured what if we can just get back to breakeven on any losing trades, because we have so few losing trades.

And we actually found it, we actually tested several different adjustment strategies over and over and over and over again, until we found one that actually worked. And we were like, Oh, holy cow, this is amazing. So we went back to several years. And we said, Okay, if there were daily explorations, would this adjustment would have worked? And the resounding answer was yes. So let’s take a look at the numbers for last year 2022, there were 88 trades total, seven of those trades lost money, right? So you have 81 winning trades, you have 77 losing trades, 88 trades total. Now, if you did not do the adjustment, and you got out at the stop loss, meaning, you know, if you lose a certain amount you get out of the trade. That’s what how that was our previous trading plan that we put the trade on, if it loses, we get out at a certain stop loss.

If you had done it that way, the result would have been a yearly gain of close to 150%. So that is still phenomenal, because, you know, 150% in a year Wowzers. But we went back and we looked at the adjustments, and said, Okay, if we had adjusted these would the adjustments would have worked to get us back to break even? And the resounding answer was yes. In every single one of those seven losing trades, we would have very easily gotten back to breakeven. And on some of them, we even made a little bit, but I’m not going to count that, right? So we got to breakeven on those trades. So those seven trades we no longer have losses for. So what was the end result? Well, if you only take the winners, and you don’t have the losers, we would have made close to 450% in 2022.

Now that is way Wowzers. Much bigger, Wowzers, right? 150. Yeah, that’s, that’s wonderful. You know, most hedge fund managers would would cut their arm off for that kind of return in a year. But now we’re talking even bigger returns. So that’s why so many people are excited. That’s why I’m jumping up and down like I can’t, like I’m very, very happy with this. I’m you know, I was like, Man, this might be the best strategy I’ve ever come up with. And I can’t, I can’t wait to show it to more people. And so we’re working on the whole process of making it better, streamlined. We’re building a curriculum for my own traders, as well as for people that want to do this on their own. And, you know, so it’s going to be exciting. And the thing was last year, like I said, there were 88 trades total for the year. But they did not introduce the Tuesday and Thursday trades until the middle of the year. So the first half of the year, we had fewer trades. Second half, we had more trade. Now this year. 2023 is the first year first full year of expirations every single day.

So you can tell so far in the first four months, we’ve already had 32 trades. And for the first three months, we were on a tear and then April kind of slowed down. We only had four trades in April. But so far we’ve had 32 trades so we’ve had 30 trades every four months. That’s you know, we’re on pace for 120 trades this year. Now, so far we haven’t had any losers, you know knock on wood, but if we do and we can break even on those, we’re still going to have a fabulous and we’re already up 180 person Time. I mean, you could probably quit right now,

it’d be like, Yeah, I’m done for the year, you know, I’m happy. But we could keep going for another three fourths of the year. And May, we’ve already had one trade, and it worked. So it’s still undefeated, the system as of 2023, as I, as I’m making this video, and we’re going to keep updating, and we are keep going to improving it. So we actually have something that is going to make it even better. Now, the thing that makes this really work is a signal. Because you have to know okay, hey, when do we put the trade on? Now we’re looking for the most successful trades, right, we’re looking to put the odds in our favor as many ways as we can. And so this is not a trade that we put on every single day. In order for it to work, we want to have the best possible setup. And what we’ve identified is there is a specific way to identify this setup, meaning that we only put the trade on we only do a trade if we get this setup, right? That setup is being told to us by a specific proprietary indicator that we have, that we created this indicator, and if it gives us a signal, then and only then do we put a trade on, if we get no signal we do not put a trade on. Does that make sense? So that’s like the secret sauce. So you get the signal. Okay, put the trade on and follow the trading rules. So eventually, you know, you have you have How do you manage and watch the signal? How do you see the signal? How do you put the trade on? How do you manage the trade? And then if you need to adjust, how do you do the adjustment. So there’s really three pieces to this, you need all three of them to do it well, and the signal is what makes it starts at off. So it’s really exciting, we’re actually coming out with an improvement to the signal, which it’s I mean, the signal is basically a calculation, right? It’s a formula. So you add this number, you add this number to this number, you divide, subtract, square root, whatever, whatever. And then it gives you a number. So if the number is over one, you have a signal, if the number is less than one, you don’t have a signal, and you don’t put the trade on. And it’ll also tell you if you’re going to do the call spread or you’re going to sell a put spread. And then the strategy tells you how much money you should make and all that stuff. So it’s really exciting. Again, so far, we’ve already had 32 trades for the year, in the first four months, if that continues up at one 80% I’m, you know, what is when at times four? 720%? Yeah, there’s, there’s no way I can tell you that we’re gonna make 720%. Possible, yes, but have no winning trades and stay consistent in the number of trades. I don’t know. I mean, if we do it would be, that would be astronomically amazing. Am I just like, Yeah, I’m done, I can’t do better this, I get over there. This is it, you know, I’m just gonna do this rest of my life.

So we’ll open it up small batches, and then small batches so that we can monitor it and we can make sure that it’s still working that it doesn’t get oversaturated SPX is so large. And you know, we’re looking at other ways to do it too. Can we do this on SPY? Can we do this on the on the futures? And can we do this on other indexes, so we’ll have other opportunities to trade this. But for now, it’s only in SPX. And so I don’t want to over saturate it. Now we do have some students that are doing like, you know, four or five contracts. We have some students doing over 100 contracts on every single trade. And then the more money you have, you know you there are different ways that we talked about where you can put more money to work in this trade without paying a lot of fees and still being able to do it. So I don’t think we’re going to oversaturate for a little bit. But I want to make sure that everybody that joins, has a good experience knows what they’re doing, is properly trained, etc, etc. So, that being said, if you’re interested, click on the video, click on the link, watch the video, and sign up for the notification list. And maybe I’ll see you in the program. So that’s it. And I’m hoping for another 180% for the next three months. And maybe we’ll make another update if we do probably make another update video. But for now, get on the list to get notifications. And until then, trade with the odds in your favor. Take care.

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