Cycle Trading

[Duma]

A couple of years ago Jaws and I read a book by Yvan Byeajl where he introduced a system of buying short pb’s called Rain Maker. We both played it for a while but gave up on it because the number of trades was small. But of late I have renewed interest in playing the strategy to just add to what I am already doing.

In the original system, Yvan only calls for playing SPY and options. The game was to open an option/s when a signal was given and sell with a $.40 rise. This left a lot of money on the table so we changed the game.

The basic buy was rule was simple, look for multiple large red bars on a Heikin-Ashi chart and buy after the first green bar (that would be an open green bar on my SCs). I have added a few more rules that are on the chart.

Something you might want to take a look at and see what you think. There were only 2 signals in June and there have been 4 so far in July. I am only planning to trade SPXL and TQQQ, but I might consider some others like FAS later if I stay at this game.

You can see the last 3 July signals on the chart