The SPX Iron Condor back testing results published yesterday contained an incorrect formula; I have corrected the formula and am re-posting the results.

Backtesting Results:

The first period is below:

SPX Iron Condor Back testing results for period 1:

This period includes a total of 17 trades; 11 reached target, 6 exited for max loss.

The second test period is below:

SPX Iron Condor Back testing results for period 2:

This 17-week period included 13 trades that reached target, 4 exited at max loss.

The third test period is below:

SPX Iron Condor Back testing results for period 3:

This 18-week period included 14 trades that reached target, 4 exited at max loss.

A summary of the results is below:

My sincere apologies for any confusion caused by the results posted yesterday. Of the 52 weeks tested, 38 trades reached target gain (60% of the credit received, 14 were exited at max loss, (100% of credit received). This represents one loss every 3.7 weeks of the year on average. Based on trading one contract every week, the average gain per week was 2.6% of the average margin per week. The risk/reward ratio is not as high as the ATM Iron Butterfly, but this trade may be appealing to those traders looking for more of a "no touch" strategy.

From my back testing, most of the trades that were exited at a loss were due to a gap/large market movement. In these cases, it's best to exit the trade immediately to avoid it going past the pre-set max loss. Gaps can hurt any strategy, so it's best to practice keen risk management as always.

I will continue to paper trade this strategy, and will enter a position today. A trade update will be posted later today. I do not recommend trading this live yet, but you may want to begin to paper trade the strategy to get a feel for the weekly Iron Condor as an alternative and/or in addition to the weekly Iron Butterfly.

Trade carefully,

Dot Hazlin