Introducing “3-2 The Unlimited Income Trading Method V2,” a video by Heating & Cooling Solutions that explores an updated version of the trading method. Version two eliminates upside risk by using the Jade Lizard and Jade Iron Condor strategies, which are neutral to bullish. This means that even if the market skyrockets, we can still profit without any risk. In this version, we only need to manage the risk on one side, unlike in version one where both call and put sides needed attention. The strategy is primarily focused on trading in SPY and QQQ, with version one being used for IWM. Join us to learn how to construct and implement these strategies for a simplified and more profitable approach to trading.
In version two of the Unlimited Income Trading Method, the emphasis is on managing the risk on the put side while avoiding any entries on the upside. By utilizing the Jade Lizard and Jade Iron Condor strategies, which have a neutral to bullish approach, we can minimize the uncertainty of the market going higher. As the market goes down, we follow the levels of DL1, DL2, DL3, DL4, and DL5, each requiring specific strategies. Similarly, on the upswing, we focus on UL1 and UL2, avoiding any entries beyond UL3. This version offers fewer trades compared to version one, but we must wait for opportunities when the market eventually reverses. Stay tuned for additional videos on how to construct these strategies and maximize your trading success.
Version Two of the Unlimited Income Trading Method
Welcome to version two of the Unlimited Income Trading Method! In this version, we have eliminated the upside risk, making it slightly different from version one. With version two, we have constructed the method in a way that there is no risk to the upside. This means that even if the market shoots up to the moon, we can still profit from it.
To achieve no upside risk, we will be utilizing the strategies Jade Lizard and Jade Iron Condor. These strategies are neutral to bullish, allowing us to construct our trades in a way that eliminates the risk to the upside. In version one, we had to manage the risk on both the call side and the put side. However, in version two, we only need to manage the risk on the put side.
We will primarily be using version two of the method on Spy and QQQ. Additionally, we will still be using version one on IWM. The strategy for version two differs from version one in various ways, which we will explore in detail.
UL Side Strategy
In version two, we have two options for the UL (Upside Level) side of the strategy. UL1 involves putting on a neutral Jade Lizard and Jade Iron Condor. For UL2, you have the option of either putting on a neutral or a bearish Jet Lizard or a Jade Iron Condor.
The bearish Jade Iron Condor is similar to the neutral version, but with the call spread slightly closer to the current market price. You might consider entering a bearish Jet Lizard or Jade Iron Condor when the market has been on an upward trend for quite some time and is close to a previous high. In such cases, there is a possibility that the market might experience a significant downward movement, leading to potential profits from a bearish strategy.
Bearish Strategy Consideration
It’s essential to consider a bearish strategy in certain market conditions. Timing the market’s upward momentum is crucial in determining when to take advantage of a potential market correction. By closely monitoring the market and identifying signs of weakness or overextension, you can make informed decisions about whether to implement a bearish Jade Lizard or Jade Iron Condor.
Downside Strategy
On the downside, there is no difference compared to version one. We will go through all the levels on the way down. DL1 and DL2 involve implementing a neutral Jet Lizard or J Iron Condor. DL3 and DL4 move towards a more bullish approach with a bullish Jet Lizard or J Iron Condor. When the market is overextended, at DL5 and below, we may opt for a short put or bull put spread strategy.
The progression from DL1 to DL6 follows this pattern: neutral -> neutral -> slightly more bullish -> slightly more bullish -> much more bullish (short put or bull put spread). This sequence allows us to adjust our strategies based on market direction, optimizing our trades for potential profits.
Similarities to Version One
Version two shares some similarities with version one. We still go through all the levels on the way down, adjusting our strategies accordingly. When the market reaches oversold levels, we switch to more bullish strategies, creating opportunities for potential profits.
Version Two’s Difference on the Upside
One significant difference in version two is how we approach the upside. We enter trades at UR1 and UR2, which are the first two levels on the upward movement. At these levels, you have the option to choose either a neutral or bearish Jet Lizard or a Jade Iron Condor.
However, we avoid entering trades at UL3 and beyond, even if the market keeps going higher. The reason for this is because version two utilizes a neutral to bullish strategy. Unlike the neutral Iron Condor in version one, this strategy means we are more biased towards the upside. Entering trades when the market keeps going higher carries more risk, as there is a chance the market might reverse back down.
Visual Guide to Trade Entries
To provide a clearer understanding of how you enter trades in version two, let’s visualize it:
- When the market goes down, we enter trades at DL1, DL2, and DL3 if it retraces.
- If the market goes up and reaches UR1, we have an entry. The same goes for UR2.
- However, when the market goes up beyond UR2, we do not enter any trades. This is because version two is a neutral to bullish strategy, and the risk increases as the market moves higher.
- The visual guide demonstrates a continuation of trades on a downward market movement and retracement. Strong uptrends without significant retracements do not provide opportunities to enter trades. We patiently wait for the market to come back down, presenting us with the chance to enter trades.
Conclusion
Version two of the Unlimited Income Trading Method simplifies the strategy by eliminating upside risk. By waiting for market opportunities on downtrends and managing risk on the put side, we can achieve unlimited income trading while mitigating potential losses. Remember to consider bearish strategies when appropriate and adjust your approach as the market direction changes. With version two, we have a comprehensive method that allows us to navigate various market conditions and achieve profitable results.