Eagle Infinity eLearning Platform
Before you Begin Trading
Eagle Strategies & Tools
Fundamental Analysis
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Advanced Credit Day Trading Outline

Roadmap for Outline

  • Quick Review
  • Risk Management
  • Directional Traders vs Volatility Traders
  • Technical Indicators
  • Predicting Opening Range
  • Rolling Advanced Concepts
  • Additional Rules & Considerations

Quick Review 

  • SPX 0DTE Credit Spread Day Trading
  • 25k+ account size 
  • Style Goal: Income Generation

Risk Management 

  • When to Roll, When to Walk Away
    Roll Early in the day
    Stop Rolling after 1 pm ET
  • Sizing, Maximum sizing 20% per spread absolute maximum 
  • Common sizing , 8%, 10%, 12%, 14%, 16% per spread 
  • Setting a Daily Goal , 3k a week , 2-3k a day , 4k loss maximum
  • Setting Additional Rules For Your Trading – Do you jump in? Do you want 10 minutes?
    Around your schedule, you are always out at a hard cut by 1 pm ET, and you trade from 9:30-12, what to do about lunch, the 1 pm ET move 

Directional Traders vs Volatility Traders   

  • Directional Trader – strategies based on the investor’s view of the future course of something
  • Volatility Trader – strategies based on the trader’s view of the expansion and contraction of implied volatility
  • Directional Traders – Develop strikes and PT/SL based on directional bias
    Give example on SPX, 1 leg credit put spread, very close iron condor 
  • Volatility Traders – Move with Iron Condors and continue to roll each leg
    Give example on SPX, wide iron condor, straddle, etc 
  • Power hour trading = highly directional
    IV gets crushed on 0dte throughout the day, volume can step in. Price can outpace IV easily. 

Technical Indicators 

  • VWAP – Volume Weighted Average Price 
  • ATR – Average True Range
    Watching volatility spike, using it as an indication of IV
  • Stochastics/MACD/RSI for directional bias

Predicting Opening Range 

  • Using /ES & /NQ Futures Contracts
  • Identify the Previous Days High & Low
    – Include Futures Price Action
    Give Example 
  • Evaluate Historical Ranges 
  • Compare levels to SPX

Rolling Advanced Concepts

  • Rolling – Closing the old position, and opening a brand new position
  • $5/$10/$15/$20 wide spreads based on preference & account size
    Overlapping Strikes and what to do 
  • One side loses, and another side wins

Additional Rules & Considerations 

  • Practice for 2-4 weeks on paper 
  • Recommended Brokers: TOS/Tasty/Interactive Brokers
  • Red Days – Limit to -3k to -4k maximum, infrequent occurrences
  • Green Days – Ideal daily goal +2k to +3k, frequent