Simple. Efficient. Effective.
Our rulebook keeps us on track for success.
Each challenge begins with $3,000 in a live money, real time account.
TraderMinute trades its own account only. All subscribers choose whether or not to make the trade in their own personal accounts.
All trade signals are generated by our Trade Engine. The Trade Engine is our proprietary signal mechanism that looks for option friendly stock moves that put the reward to risk ratio in our favor.
All trades are either simple long call or long put options. We do not trade spreads, stocks, forex, futures, or crypto. The KISS method goes a long way!
Trade signals trigger between 9:45am-10:30am ET and 2:15pm-3:15pm ET daily. Almost all entries and exits are made around this time.
Trade allocation (% of cash based the challenge's current value) is approximately 40% per trade, dropping to 30% per trade after $3,000 of gains.
No automated or preprogrammed stops are typically used. Preprogrammed exits will occasionally be used for profit taking. But exits happen in the 9:45am or 2:15pm ET trading windows (see above).
The options chosen for each trade are typically 20-50 days until expiration using the closest at the money strike price.
All exits are based on the ATR Method. For more information on the ATR Method, check below.
All trade entries and exits are sent out in real time via email. Each trade is also posted in real time on the Trade Seat during the trade windows at 9:45am-10:30am ET and 2:15pm-3:15pm ET.
Multiple trade entries/signals are sorted based on the best reward vs risk scenarios.
New trades are not entered unless cash is available. Current trades are not closed in order to accommodate new triggers.
While all trade entries and exits follow the Playbook and Trade Engine, TraderMinute can step in under unique circumstances to change a trade.
When a new signal is triggered and the option is more than 10% the norm, TraderMinute will at times wait 1 to 2 trading sessions in order to enter the trade.
Each challenge typically goes for 90 to 150 days, based on market conditions and results, before resetting.
Okay, so technically this isn't a rule, but you can sure as hell bet that it's what we play for!
How Trade Entries are Decided
How Trade Exits are Decided
The Average True Range (ATR) is a technical indicator developed by J. Welles Wilder in the 1970s. The indicator measures volatility by looking at the range of a stock over a selected period of time. The ATR exit method that we employ for each trade is based on the ATR indicator. This exit method, like all exit methods, is not perfect at calling tops and bottoms but it works great for the option trading we do here at TraderMinute.
There are 2 types of exits that we employ in the ATR method, price exits and time exits. Price exits are based on how the stock price moves while time exits guard against significant option price decay.
Based on stock price
Based on the number of trading days the trade is held
When a stock moves, the size of the move determines whether we exit or adjust the position. We also use time stops to keep from holding onto trades for too long.
With every trade, price stops and time stops are defined immediately, while real time alerts are sent out for every exit.