What if I gave you all these stats? How would you trade it?I ran a bunch of stats on a signal generator that I have. These signals are generated using an impulse reversion logic that I created. I'm trying to figure out how best to make a winning strategy with options. I believe I have such a strategy, but I'm not an option trading expert so that I would like your thoughts and opinions. Based on my math, it requires two option contracts at any given time, and IWM has a pretty sweet profitability of about $1.20-$1.70 per signal.
A signal has an entry price. A certain distance from that will be the TP price, and below the entry, with a certain distance, would be the SL price.
Once Entry triggers, SL is hit 73.62% of the time
If not TP is hit 26.38% of the time
TP is hit within a day 98.53% of the time
SL is hit within a day 99.65% of the time
Often, SL is hit within 3.3hrs 97.16% of the time
After SL, TP is hit 88.90% of the time
Within 3 days, previous SL trades hit TP 87.24% of the time
After SL price can move another $1+ from the SL level 52.73% of the time
The average TP distance is $1.18 from Entry
The average SL distance is $0.40 from Entry
How would you trade options with such stats?
