It is an options strategy with very minimal risk. It is extremely resilient to volatility changes or crashing markets. It was created by Ignatz ("Igi") Schlajda. Igi has been creating trading systems for over two decades.
The main goal of the Schwalbe trade is to keep losses small, even if the market is crashing.
Igi only does four trades per year. One each quarter.
There are very few adjustments with the trade.
Some trades don't have any adjustments in three months. The most Igi has done is 10 adjustments in three months. Most of the adjustments are end-of-day or limit orders.
Trades never overlap. Igi waits to close one trade 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.
Updated Apr 10, 2021
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