Weekly Iron Butterfly Backtest (Part 10)
Posted by Mark on July 10, 2013 at 05:21 | Last modified: August 5, 2013 10:34In this blog series, I’m backtesting the weekly option trade described here.
Week 9′s trade begins like this:
The market rallied and then pulled back over the next couple of days. While a downside adjustment point was hit on Day 2, I did not adjust because the trade was profitable:
The profit target was hit on Monday morning:
P/L on Day 1 ranged from -$372 to -$81.
P/L on Day 2 ranged from +$117 to +$285.
On Day 5 (nothing happened over the weekend), the trade was closed for a profit of $459 on a margin requirement of $3,618, which is a return of 12.7%.
This trade has won in five out of nine weeks thus far.
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