Project SPY options

One of my goals this year is to achieve consistency with my trading. It has always been boom bust, stop and go. I thought I was on my way to achieving that in March when my account was up 1830% ytd, but things started going downhill. It was mostly due to frustration. I was more or less trading blindly as I had a full time job. Sometimes at lunch time I want to place a trade but break is over and in order not to miss the trade, I just place the trade at the prevailing price, usually not the best price. Sometimes I can't protect my position and know that I making losses but can't do anything while I am back at my desk. By the way I was trading S&P500 index with a spreadbetting company.

One problem I had with spreadbetting was it follows both the spot and the futures market. My model only follows the spot market.Once the US market close at 9:00pm till it opens at 2:30pm (UK time), I am just a spectator. Sometimes it does works to your advantage as you can get in good price. What I find quite irritating about spreadbetting is sometimes when you place an order (limit or stop) and this get triggered but when you check the high or low prices the price never reach that level. This make a mockery out of my model. So the bid or ask did touch the price but I am not there 24 hours to verify that. I don't know how they can justify that. There are some US brokers that allow you to place limit or stop order but the order is only triggered when it registered as the last price. This is one of the reason why I find it reluctant to use stops with the spreadbetters.  

Anyway, as the frustration mounted, I knew lessons had to be learned. At least I am happy that the model is working, but still need more work on the psychology of trading. I have also decided to trade with a real broker and I am giving the SPY options a go. I think this would help. I will be trading the SPY options at least until a time when I am rich enough to quit my job, then I can add more tickers. I will also be comfortable using risk management. Things like contingency orders could be very useful. It is not going to be easy but I am devoting the rest of the year to achieving consistency. I have upgraded my options strategy model which now have heatmap to spot the best options. Hopefully it will work!