Search results

That's super helpful, thanks for the info, that's another great option to sell fx option, I hope the liquidity will not reduce the performance of the strategy, but the info is very helpful

I am trying to paper trade a strategy that involves selling an OTM put on a currency after a up gap day, neglecting the part of weather it's a winning strategy, what are my options (pun intended..) here? 1. Sell the put option on an ETF - the drawback here is that the price and vol are so low I...

You poor quant, such a simple question and so many irrelevant answers, here goes : You may calculate the annualized vol by a simple rolling 90 days std. dev., that's close enough, but that's an academic price, not close to the real price of the option, why? Because options trader plug what's...

Actually the results for buying when it's over a specific MA are worst than the model with no limitations, that's because you don't time the market and buy the dip (even if it turns to a deep ..), proving the fact that you can time the market and better stick with it through the drawdowns

It's not my model, it's a simple "buy 1000$ every month and hold" approach, you start with 0$ and increase by 1000$ every month, at the end of 2001 you have 12K$ plus the performance of that year

I have tested buy and hold with the following condition - Buy 1000$ SPY at the beginning of each month, during 2001-2021 The results are as follows: CAGR 2.06% Max. Drawdown -15% (3/2020 Coronavirus) Monthly Sharpe ratio 0.64 Profit - 556,434$ This is because in the early years the portfolio...

Very well done, thanks for the analysis

I'm not sure I agree, if my portfolio is large and I have a low vol strategy, that generates an income. At the end of the day you take the $ not the %

This probably was painful in the past month as both gold and QQQ took a dive, but I guess it's profitable in the long run

The problem with approach might be that the larger the portfolio becomes, the larger the drawdowns and the longer the recovery time

Passively investing in the stock market has its advantages – it takes very little effort, no homework required, in fact, no knowledge is required, just pick your favorite S&P500 ETF (SPY, IVV,…) invest all your money in the one ETF and track the market. This strategy is known as “buy and hold”...

The VIX hasn't been in these levels since 2/2020, and still the markets are not that calm, the last month was volatile and directionless, usually low (lower than 20) values for VIX predict low vol. But it seems that this time is.. Well.. Different, Any thoughts?

I'm also not a big fan of him, I highly respect the knowledge and the performance of his funds over the years, but lately he had become paranoid about the future, more Dr doom then the realist he once was, I would listen to him but make my own decisions, his comments are one more variable in the...

Great idea, that way there is a discussion about the expectations of market returns, that's a true gem, Thanks

Right, but even then when you try to send the message that 15% / year is actually not bad, it sounds low compared with the media stories on X00% of the last wall street hit

I don't think there's anything someone could say to stop the horror, it's calibrating expectations which you can't do without real experience

I really like this approach, they can have a 20k portfolio for live trading but another 100k for paper, that way they have the feeling of playing with big money, examine risk, trade a number of strategies, but live trade only the profitable ones and grow slowly, Thanks

That's flexible, I can teach any reasonable approach

Exactly, it's hard to explain this concept to a newbie, a new trader enters the market with expectations to double every few months, like he saw on the news, they don't see the patience element of the trade.

No, that's thing