It was a back and forth week for us at SPX Option Trader. We ended this past week with -22% ROI in our SPX Daily Outlook trading, -19% ROI in our SPY Daily Outlook trading, -201% ROI in our SPX Aggressive Trader, -200% ROI in our SPY Aggressive Trader and -1% ROM in our SPX Spread Trader.  It’s been a bit rough for us over the past few weeks. We’ve had three down weeks in a row. Now the last 2 weeks were very small down weeks in the Daily Outlook, but still down weeks. When this happens, many traders get concerned and want to start changing their approach to trading. But we don’t believe that is the right response to drawdowns. We aren’t concerned and we aren’t about to change our approach to trading. Our approach has proven itself in all sorts of markets since 2016. Just because we experience a drawdown, does not mean there is something wrong with our approach. We do not change anything because of a few down weeks or even a down month.

We have had similar drawdowns many times since we began our service in 2016. But those periods were most often followed by large gains, and the key was to stay consistent and not trade too large of a lot size. We’ve weathered many drawdowns and so far, have always bounced back. We would expect the same this time around. Now of course, there are never any guarantees in trading. But we have full confidence in our trading strategy and are continuing to trade as we always have each day. Our indicators are reliable, nothing in our strategy needs to change. This is just a bit of rough patch, and every trader must realize these time periods happen.

The reality is that drawdowns happen, every trade is a risk and sometimes things do not go as we expect. While it is unusual for us to have 3 losing weeks in a row, it does happen.  A few rough days does not mean our approach is invalid and it is time to start over. It is all a part of trading. We stay consistent in our approach and that is how we have achieved success over the long term. Some weeks are winners, some are not but staying consistent is the key. We don’t know how long this rough patch will last, but are confident based upon our years of experience that it will end. When it does, we will still be trading the same way and look forward to more profitable days ahead! Below are our comments for each trading day of this past week.

As a reminder the markets are closed on Monday, December 25^th for Christmas. Normal trading activity for us will resume on Tuesday, December 26^th. We wish you and your family a Merry Christmas!

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