Design a trading plan for a $25,000 account
Goal: Grow account to $75,000 to pay off forever-home to get ready for retirement. Grow by 10% to meet the target retirement time frame of 11.5 years.
Trading Plan: Earnings in S&P 500 companies to achieve 4% annualized profit (need to test to get a more realistic goal). Trade Covered Strangle and Ratio Diagonals to achieve 6% profit, utilize Box Spreads to capture risk free rate and cover any downsides in options strategies.
Risk Mgmt: Exit uncapped risk positions at 15% drawdowns, flatten capped risk positions at 50% loss.
Tracking: Spreadsheet, track overall portfolio utilization, positional risk, ROIC (measure efficiency), CAGR (measure on portfolio track). With a small account need to stay efficient with collecting premium, Target 20% APR, higher APR target to increase efficiency and counter cap lock up in underlying.
Trading Earnings:
Entry Criteria: S&P 500 companies with high probability of actual move less than implied move. Te