6-Month Growth Plan

What To Trade

  1. Universe: Highly liquid stocks listed within the S&P 100 or Nasdaq 100 indices to ensure institutional backing and stability.
  2. Price Filter: Share prices must reside strictly between $5 and $250.
  3. W.T.F. Strategy: The stock’s closing price must trade cleanly above its 200-day simple moving average to align entries with long-term bullish trends.
  4. Wheel Strategy: Select fundamentally sound, profitable value stocks priced under $18 to safely accommodate our $9,000 capital constraints. The stock must pay a steady dividend.
  5. Exclusions: Strictly avoid leveraged ETFs, biotechnology stocks, Chinese ADRs, and highly volatile “meme” stocks that lack stable financial foundations.

When To Enter

  1. W.T.F. Signals: Place entry orders to buy shares at the market open on the trading day immediately following a confirmed “New” W.T.F. signal (generated when the 4-period RSI closes below 15).
  2. Open Below Entry (OBE): If the stock opens 3% or more below the original intended entry price, execute the buy order immediately to capture a high-probability discount.
  3. Wheel Put Sales: Sell cash-secured puts with weekly expirations (4 to 10 days to expiration) at strike prices located strictly at or below recognized support levels (LCL 40).
  4. Premium ROI Target: For any cash-secured put, the premium received must mathematically yield a minimum of a 30% Annualized Return on Investment (ROI).

When To Exit

  1. W.T.F. Technical Exits: Sell the entire stock position at the market open on the trading day immediately following a technical exit signal (generated when the 4-period RSI closes above 45).
  2. W.T.F. Stop Loss: Place a catastrophic stop loss order at Entry Price minus (4*Average Daily Range) to limit risk exposure.
  3. Options Profit Targets: Set automated Good ‘Til Canceled (GTC) limit orders to close out option contracts at 90% of maximum profit, or at 80% of maximum profit if achieved within the first 24 hours of the trade.
  4. Covered Calls: If assigned on Wheel puts, sell covered calls at or above the original assignment price, ensuring the premium yields at least 30% annualized ROI.

Money Management / Position Sizing

  1. Account Allocation: With a total starting capital of $9,000 USD, allocate no more than $900 per stock position for W.T.F. trades, allowing us to manage up to 10 concurrent active trades.
  2. Wheel Allocation: Limit cash-secured puts to $1,800 per position (maximum 5 concurrent trades). This capital reservation ensures we can easily absorb assignment on cheap stocks under $18.
  3. Risk Limit: Never risk more than 2% of total account equity ($180) on the stop-loss threshold of any single trade.
  4. Formula for Annualized ROI: Annualized ROI = (PPD * 360) / (Strike Price * Number of Contracts * 100) * 100%

Other Rules

  1. Earnings Exclusion: Never hold options or open stock positions through an earnings announcement. All options must expire at least 2 weeks before the scheduled earnings release date.
  2. No Over-Trading: Limit daily W.T.F. entries to a maximum of 3 new positions per day to prevent concentration risk.
  3. Systematic Discipline: Treat trading as a rigorous process. Execute signals mechanically based on technical indicator criteria, removing emotional bias.