Butterfly Adjustments

Butterfly strategies give you flexibility to exit a trade profitably. Learn how to adjust butterfly positions to maximize your win rate and reduce risk.
Butterfly Adjustments
Kirk Du Plessis
Apr 19, 2021

Trading butterflies (and especially broken wing butterflies) give us a lot of flexibility in how we can exit to maximize our potential win rate. Because we trade BWB's much more often than a standard butterfly we will focus this video on adjustments for these strategies. With a broken wing butterfly we are able to buy back the embedded put/call spread should the position move favorably in one direction and leave a remaining risk-free butterfly for a potential one time big profit. While this is a more advanced type of adjustment it's very easy to follow and I will explain it step-by-step in this tutorial.

No tags found.
Next lesson
Using Stop Losses
Using stop-loss orders actually creates more losing trades with risk-defined strategies.

Trade smarter with automation