Another Volatile Week To End January 1-28-22

 The volatility continued for this week to end January. SPX and RUT ranged over 120, and 60 points daily respectively. SPX touched a 10% decline and bounced so far. It held its 50 week MA and closed above it. RUT hit the 20% bear mark and bounced a little. It's hanging in the mid of the big valley of VP on weekly. It held FB 50% pullback after 4 consecutive losing weeks. The sentiment is negative for sure. Last Friday's relief rally of 2.4 -1.9% was in line with the seasonality. We are not out of the wood yet if the seasonal pattern continues to play out. 

The IB Netliq closed at 120.9K,  +3K. It actually is down 2K excluding the 5K from ET. The leverage is 4.4 from last week's 4.7. The realized P/L is -$26.45K. The cash collection is -$4.9K due to my stop loss in RUT puts of $8K during the highs of the selloff. It was another blood bath week for me. 

The personal accounts had a nice recovery. The P/L is + $7064, mainly from the recovery of last week's roll and split. The actual cash collection is about $530 since I only traded the 0 DTE last Friday. The rest of the P/L was from closing out last week's positions. Overall, the 0 DTE has been working as long as I avoid trading it when the VIX is above 28. 

I have paid a hefty price from my poor risk management. It will take 3-6 months to make the IB account back to a healthy level. I must enforce my stop-loss rules otherwise I won't be able to become a consistent, successful trader. 

How did I do with my plan for last week? 

1. Take Stops. I did two in RUT put hedges, but not in all of my trades. 

2. Deleveraging. Sold some bear calls to reduce 5-10 points of my bull puts. Not sufficient and aggressive enough.

3. Reversing long positions. Didn't do it due to a lack of deep looking and thinking. 

4. Trading with the downtrend. I entered some hedging put spreads in both SPX and RUT with some success. 

My plan for next week is:

1. Reduce 1-2 bull put positions to reduce my risk exposures. We may have a short period of consolidation which will provide me the opportunity to deleverage. Don't screw up this time! 

2. Put stops in every new order I place. 

3. Reverse or split my bull positions to make my delta flat. 

4. Hedge my positions with spreads and leveraged ETFs.