The 10% Quant System | Selling Credit Spreads Strategy

10% Credit Spreads
5 min readMay 17, 2023

In this short article, I am going to show the performance of the strategies I teach then give you the exact steps to trade them too! This way I can prove to you that it works before I show you how to implement the strategies. I will be highlighting the trade alerts on $SPY and $TLT.

These charts show the performance following my five strategies. This is the historical growth of a $2,000 portfolio where you put 5% of your account into each trade. Overall, you have 95% win rate on $SPY and a 90% win rate on $TLT.

The chart highlights the insane growth you can experience when you reinvest your profits using a high probability trading strategy. However, you can also notice very sharp and large drawdowns on the chart. When you lose, you lose big. That’s how credit spreads work. When you have multiple losses in a row, it can be hard to handle, so ensure you are up for the challenge of handling the downside.

If you want to turn $2,000 into $275,000 trading SPY or $100,000 trading TLT, then take note of the strategies that I am going to share below!

The Five Credit Spread Strategies To 100x Your Account

The Squirrel Strategy Trading Guide:

This strategy is used in neutral and sideways markets when no clear direction is present or detectable. This strategy has one of the lowest historical win rates because of how volatile and unpredictable the market is during this phase.

Entry Rules:

  • Wait for the stock to be inside the Trending Band ( +1 and -1 standard deviation of the 200 day moving average )
  • Determine your short strike price for the put credit spread ( stock close price x 96% )
  • Determine your expiration date ( current date + 14 days then round up to the next Friday )
  • Setup the trade in your broker (sell to open the short strike price, buy to open the strike price below the short price, and use the expiration determine above)
  • Ensure you are collecting at least .15 in credit for placing the put spread
  • If you can collect .15, officially place the trade

The True Turtle Strategy Trading Guide:

This strategy is used in bullish and uptrending markets. This strategy has the most occurrences because the market is statistically trending up for a vast majority of the year.

Entry Rules:

  • Wait for the stock to be between the green and yellow line ( +1 and +4 standard deviations of the 200 day moving average )
  • Determine your short strike price for the put credit spread ( stock close price x 97% )
  • Determine your expiration date ( current date + 12 days then round up to the next Friday )
  • Setup the trade in your broker (sell to open the short strike price, buy to open the strike price below the short price, and use the expiration determine above)
  • Ensure you are collecting at least .15 in credit for placing the put spread
  • If you can collect .15, officially place the trade

The Short Play Strategy Trading Guide:

This strategy is used in bearish and downtrending markets. This strategy has one of the least occurrences because the market doesn’t downtrend long. It typically crashes fast then slowly recovers.

Entry Rules:

  • Wait for the stock to cross below the red line ( -1 and -3.5 standard deviations of the 200 day moving average )
  • Determine your short strike price for the call credit spread ( stock close price x 104% )
  • Determine your expiration date ( current date + 9 days then round up to the next Friday )
  • Setup the trade in your broker (sell to open the short strike price, buy to open the strike price above the short price, and use the expiration determine above)
  • Ensure you are collecting at least .15 in credit for placing the put spread
  • If you can collect .15, officially place the trade

The Winning Whale Strategy Trading Guide:

This strategy is used during market recoveries after a large crash. This is a bullish strategy that capitalizes on the market recovery when big institutions and investors typically buy in and push the market prices higher.

Entry Rules:

  • Wait for the stock to cross back above the bottom yellow line ( -3.8 standard deviations of the 200 day moving average )
  • Determine your short strike price for the put credit spread ( stock close price x 96% )
  • Determine your expiration date ( current date + 14 days then round up to the next Friday )
  • Setup the trade in your broker (sell to open the short strike price, buy to open the strike price below the short price, and use the expiration determine above)
  • Ensure you are collecting at least .15 in credit for placing the put spread
  • If you can collect .15, officially place the trade

The Elastic Bounce Strategy Trading Guide:

This strategy is used when the market has hit the mathematical low after a crash. Unlike the other strategies, this is a mean reversion strategy and has one of the highest historical win rates.

Entry Rules:

  • Wait for the stock to cross below the bottom yellow line ( -3.8 standard deviations of the 200 day moving average )
  • Determine your short strike price for the put credit spread ( stock close price x 96% )
  • Determine your expiration date ( current date + 14 days then round up to the next Friday )
  • Setup the trade in your broker (sell to open the short strike price, buy to open the strike price below the short price, and use the expiration determine above)
  • Ensure you are collecting at least .15 in credit for placing the put spread
  • If you can collect .15, officially place the trade

The Elastic Rejection Strategy Trading Guide:

This strategy is used when the market has hit the mathematical high after a strong run up. Unlike the other strategies, this is a mean reversion strategy and has one of the highest historical win rates.

Entry Rules:

  • Wait for the stock to cross above the top yellow line ( +3 standard deviations of the 200 day moving average )
  • Determine your short strike price for the call credit spread ( stock close price x 103% )
  • Determine your expiration date ( current date + 19 days then round up to the next Friday )
  • Setup the trade in your broker (sell to open the short strike price, buy to open the strike price above the short price, and use the expiration determine above)
  • Ensure you are collecting at least .15 in credit for placing the put spread
  • If you can collect .15, officially place the trade

Thanks for reading!
Austin Bouley
CEO & Chief Strategy Officer

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10% Credit Spreads

I help people who work-full time or have a family make 10% a month using credit spreads! If you don't make money with my alerts and strategies, I refund you :)