Recent content by HFStartup

Augen is a genius, and I am surprised that with all of the mathematical knowledge demonstrated here, that it is not readily apparent. There is no need to make it too complex; he is simply expressing how to isolate conditions when the market is stretched liked a rubberband so that you can...

DaveyC, Thank you for your reply to my reply to your reply! :D Your clarification makes much more sense. Delta neutral trading as you are describing has always been a secondary concern for me since I manage a portfolio and seek to build up an inventory of the underlying while benefiting...

Thanks to everyone who has posted their thoughts and suggestions. It has made me consider a number of issues and I am now formulating/refining a structure for trading the inverse indices. The question I have is whether it is optimal given the conditions and desired outcome... For clarity, I...

Roreilly. My intention is to isolate and capitalize upon the time decay while remaining as directionally neutral as possible. Exceedingly high volatility for both indices at the time of entry will be present, so there is a high probability that volatility will fall after entry. Bull Call...

While an offer of assistance from Bob or anyone else is appreciated, I am not sure how this topic turned to this unrelated subject matter. I never expressed an interest prop shops or in shopping this concept around as an HFT. Thanks.

That is exactly what I am attempting!

spindr0, Magnitude of the daily ROC is relative as an entry would only be considered when the spread is in a statistically abnormal state, lets just say with a probability of 5% or less of occurrence. The daily trading pattern is already sorted out as this is just a matter of creating a...

Daveyc, Yes, the indices are ETFs and both have strong option markets. However, one is much liquid than the other. With all due respect, I must disagree with your statement that theta is the least important of all the greeks. I have been using it as my primary metric for a trading...

Hi Bob. Thanks for your offer. Rather than talk offline, is there any way you could post your suggestion in this forum, so that others can benefit from your suggestion? Thank you.

For some time now, I have been monitoring two indices (I'll refer to them as index A and index B) which are almost exactly inversely correlated; when one moves up by a certain %, the other moves down almost the exact same %. I will refer to the combined % moves of each index as the "spread."...

Heech, It took me three years to raise US$100k to start my incubator fund. And by incubator fund, I mean a fund where I cover all of the costs, charge no fees and do not represent myself as an RIA. Also, I have no pedigree or direct connections to Wall Street. Most likely, it will take me...

I have come to believe that trading styles are unique, much like fingerprints. Often, we try to adopt another trader's methodology, but when it doesn't fit our psychological profile/mindset, we experience stress, fatigue and ultimately failure. IMHO, the key to successful trading is not to...

To take it one step further, Jesus taught us that we should not be at peace with the world. And in fact, the road to peace often meanders through strife. I always found it interesting that so many expected Jesus to play a significant part in toppling Roman dictatorship and ending the...

If I sell someone the right to sell me something, that is a purchase. Therefore, saying that someone will blow out based on this concept is misleading and reflects the lack of development of a "complete" methodolgy as I posted earlier. In addition, if you feel reading direction is the basis...