Recent content by DallasSteve

newguy You're summary at the end is basically what I'm studying. One difference would be, as you point out, to trade QQQQ either direction so I want to hold both a put and a call. If you're holding a strangle going short is no more risky than going long. Plus, I would set the entry...

You mention OTM put options. Is there a reason they would be different than OTM call options in terms of profitability? Also do you think that near-the-money options in a strangle system would be profitable (ignoring my Martingale trade) or does the premium (and commission and spread) eat up...

Wayne Thanks for that thread (it's so old QQQQ was still QQQ). It does look like he had the same idea. He said that he lost due to high commissions. My account is with IB who offers very low commissions and QQQQ offers very low spreads so I think it may work. If this doesn't work I may...

My plan is to determine a certain size limit before starting and set the strangle size and width accordingly. Maybe I set 8X trades as the limit to my underlying position. I would trade 1X, 1X, 2X, 4X and no more. I would buy 8X size puts and calls for the strangle and I would set their width...

1) ?.....you're "trading against the long-strangle". Not necessarily. The underlying (eg QQQQ) can swing both ways, not just long. The hope is that the underlying will oscillate within the strangle enough times (over the life of the system) to take profits which beat the costs (obviously)...

I am aware that Martingale strategies are frowned upon in trading circles and having backtested them extensively I understand why. However, I have an idea for going Martingale with limited risk and I wonder if (probably) it's been done before and what were the negatives. I would run the...