Level II, Level III & RT Alerts
Level II is designed for those that trade primarily stocks and options. In this subscription level, equity is both bought and sold short. Option strategies are confined to covered calls/puts and basic long/short option positions.
Level III is designed for those that trade stocks, options, futures, and forex. This level includes all strategies used in level II, but also includes complex option strategies like spreads, condors, verticals, etc. All forex and futures positions consist of both long and short positions.
The RT alerts subscription is Level III without the video blog access and all of these subscriptions can be used with Think or Swim’s Auto Trade program!
Key Points
- System has returned 59.5% a year since inception in 2008!
- Portfolio is always long/short
- Less volatility and smaller potential drawdowns
- Simple to trade
- TOS autotrade makes this system 100% automated
- Trade multiple, different markets (e.g. equities, forex, commodities, etc)
- Diversification is powerful
| Analytics | Percentage |
| Compound Annual Return (CAR) | 59.5% |
| Maximum Drawdown (MDD) | -9.1% |
| Total Trades Since Inception | 137 |
| Average Trade Length | 36.3 days |
| Maximum Trade Position Drawdown | -95% |
| Standard Deviation | 42.1% |
| Sharpe Ratio | .504 |
| Average Trade Profit/Loss | 21.2% |
| Strategy | Minimum Capital Amount | Capital Allocation |
| Level II Equity | $5,000 | 5-10% per trade |
| Level II a. Covered Calls | $5,000 | 5-10% per trade |
| Level II b. Basic Options | $5,000 | 2.5-4% per trade |
| Level III Complex Options | $5,000 | 5-10% per trade |
Note: futures & forex can NOT be auto traded due to leverage & margin issues.
What do I get?
- Each day Level II subscribers get:
- Real time stock & option trade alerts sent to your email & archived on the site
- Daily video blogs
- Option market/position insight around mid-day
- Position & portfolio commentary at the end of the day
- Each day RT Alert subscribers get:
- Real time forex, futures, stock, and option trade alerts sent to your email & archived on the site.
- Each day Level III subscribers get:
- Real time forex, futures, stock, and option trade alerts sent to your email & archived on the site.
- Daily video blogs
- Forex & Futures insight before the markets open
- Option market/position insight around midday
- Position & portfolio commentary at the end of the day
Common Abbreviations
- EP = entry point
- SL = stop loss
- PT = profit target
- Day= day order
- GTC = good to canceled
- Avg = average
"What do I need to know to auto trade my subscription?"
First, you need a subscription to the product you want to auto trade and an account with Think or Swim (TOS). Once you have these things in place you will need to contact TOS and let them know how much you want to trade for each level. There are four break outs in the auto trade program. The table below lists the break out, capital levels, and allocation percentages for each option. These are only starting points and some have done better or worse with higher or lower capital levels.
