Monthly Cash Thru Options IC1 service autotrades through several on-line
brokers. Autotrading is a service
where your brokerage account is traded automatically based on recommendations
published by Monthly Cash Thru Options.
At the end of each monthly cycle,
we send an auto-trade report to our auto-trade subscribers. To see an example
report please click on AutotradeReport.
The IC1 Service currently offers auto-trading through TD Ameritrade,
TradingBlock, Autoshares, OptionsRoute and
Global Autotrading that autotrades through Interactive Brokers. If you are interested in our auto-trading program and don't see your broker
listed, please contact us and we'll contact your broker to see if they support
The process of setting-up an IC1 autotrade account is as follows:
1) Fund your brokerage account. The minimum level to start with for autotrading is $6,500, where $5k would be traded for the month and $1500 is reserves (about 25% to 30% of what is being traded). In addition, it is recommended to keep reserve cash in the account at all times. Another example would be to fund the account with $13k where $10k would be traded for the month and $3k is reserves. The MCTO Team will autotrade accounts up to $200k. If you are interested in trading more than $200k, please contact us at 408-375-9890 and we can discuss the MCTO managed funds.
2) Within your broker’s website, log into your account, navigate to the autotrade area, select MCTO as the newsletter provider, select the “Iron Condor 1” service, select “specific dollar amount”, and then enter the amount of cash you would like to allocate to each trade that we send in. We place a maximum of 5 trades per month that require cash in the autotrade accounts. (we actually open up to 10 credit spreads each month, but the first 5 spreads require the cash) As an example, if you were to set your autotrade rule to $2k, you would be trading $10k for the month. You would also need 25% reserve cash of the amount that you are trading, or $2500 for this example, so you would have $12,500 in the account. (it’s NOT recommended to select “% of buying power” when setting the autotrade rule). Another example would be to set your autotrade rule to $4k; in this case you would be trading $4k x 5 = $20k for the month; you would need $5k in reserve cash, for a total of $25k in the account. For more information about Iron Condor 1 versus Iron Condor 2 please go here.
3) Set your autotrade amount in increments of $1000. Working off of the previous example, the next level up would be setting your autotrade rule to $5k per trade where you would be trading $25k per month and you would have about $6k in reserve cash for a total of $31k in the account.
4) You may adjust your autotrade rule at anytime, even mid-cycle when trades are already open.
5) When we need to access to the reserve cash, we’ll send in a 6th trade alert, and then possibly a final 7th trade alert, which will allow us to access all of the reserve cash. This usually happens 1 to 2 times per year.
6) It’s recommended to start small and grow your account over time as you gain understanding and confidence in our analysis and how we execute our trades. Credit spreads represent a long term strategy where it’s a marathon, not a sprint.
7) After you set up your autotrade rule in your brokerage account, the broker will contact MCTO and alert us that your account is ready to be auto-traded and is pending.
8) Sign up as a paying subscriber to the MCTO autotrade service. To learn more about packaging and pricing please go to the Subscribe page. Unfortunately, the 30 day free
trial does not apply to auto-trade accounts; however, we do offer a $5 first month special for autotrade subscribers. MCTO will then approve the autotrade rule and your autotrade account will be activated.
9) If you are auto-trading in an IRA or Roth IRA account, because moving cash into and out of
the account is prohibited, you'll need to hold your reserve cash in the same brokerage account.
If you have any questions about how to set up an IRA account or regular taxed account, please call us toll-free at 877-248-7455.