This updated options strategy (first version started live Sept 2019, this one since Nov 2020) with very minimal risk is a swarm of 6 trades running at the same time. It is extremely resilient to volatility changes or crashing markets. It was created by Ignatz ("Igi") Schalajda. Igi has been creating trading systems for over two decades.
The main goal of the Schwalbe trades is to keep losses small and permanent risk reduction during the trade by GTC orders. Near the end of a trade it is fully protected and can even "protect" younger trades. In other words: The Sixpack of Schwalben generate a PHALANX against Drawdowns.
Igi does two trades per month. Each with a trade duration of 3 months.
About 50 % of the trades don't have any additional adjustments in three months. Additional adjustments are end-of-day or limit orders, triggered by 3 different Signals.
The Schwalbe trades are based on levels, not indicators. The levels are defined by the entry price and will NOT change during the whole trade
Trades never overlap. Igi lets the trade expire before starting the next one.
Igi uses E-Mini S&P futures options which use a risk-based margin.
Trading SPX options is also possible. Risk-based margin (SPAN or Portfolio Margin) is highly recommended.
A version for Reg-T accounts will be available soon (June/July 2021)
Live Trade Performance in a €30.000 Account
The purpose of the Schwalbe Trade Alerts is to provide information how Igi trades. The trade examples are live trades at either Interactive Brokers using Reg-T or SPAN margin. They are intended to be examples for you get ideas for your own trades.
Subscribe to the Schwalbe Trade Alerts for $269 per quarter