Search results

Alright now I am getting confused. so many different notations and conventions... What is this: long strangle at the wings, short body strangle - LONG OR SHORT IRON CONDOR What is this: short strangle at the wings, long body strangle - LONG OR SHORT IRON CONDOR. Where do you receive a...

I thought a wrangle is a call backspread combined with a put backspread.

I thought it was achieved by being long the wings and short the body e.g. selling a strangle and buying an outer strangle... or selling a bull put spread and selling a bear call spread ?

Thanks a lot!

Hwo would you calcuate the maximum risk on the condor/buttefly posiit\\tions. I assume the maximum profit is the credit you receive? Finally just for clarification - when I say short iron condor - I mean short strangle and long outer strangle. Conversely a long iron condor - is a long...

So if you were confident in the range you would use a condor as opposed to a b'fly. I would assume this, since your profit zone is wider in the condor than in the b'fly as in the b'fly you want the underlying to reach the strike of the straddle you sold?

The terminlogy is confusing, as what Natenberg calls a long iron condor or b'fly, Cotttle calls a short iron condor or b'fly! There is no consistency between what is long or short for these positions between varuious authors and traders!

Many Thanks HD! Can I heap some praise on you.......??!! In general under what circumstcnes would you use an iron condor, iron butterfly or wrangle. ALso are there any hidden risks with these. For example, what are the risks in constructing an iron condor (short strangle/long strangle)...

What are the differences betwen an iron condor/b'fly and a plain condor/b'fly. Is one difference the use of puts AND calls in the iron version and only puts OR calls in the plain versions?

Ah come on... what spycophancy, we praise authors who we've learnt from and you call that sycophancy. Relax and share what you knwo... Ill only thank you, I won't praise you, so you don't accuse me of being a sycophant!

Oh I fully concur - Cottle is a better book - he gives you the fundamentals, he teaches you how to understand the logic and then throws in real trader lore... fully great book. Thanks for the link to his new book. I had downloaded it but had not read it. On your prompting, I got some more...

I have the Cottle book and consider it to be a great book. However his notations are not consistent with many others. I don't say this to criticize him as he is rather detailed and precise (and explains the differences in notations)and I cherish his book. He does not go into much detail on...

I have noticed many options traders and options trading book authors use different notations for different strategies and their synthetics and also indiscrimantely (or so it appears, refer to strategies as being short or long). This can be very confusing. what is even more bothersome, is that...

Thansk for the clarification/explanation. Why do you use 2 as a base line for the product of PF and Avg Win/Avg Loss? What is the range of values you've seen for this product, what would you consider to be a high value for a theoretically exceptional system?.

For clarity which two are you referring to PF & % Profitable OR % Proftable and Avg win/Avg Loss OR PF and Avg Win/Avg Loss?

Why do use the product of these three ratios, what does it mean, what does it express? Why do you consider 1 to be a cut-off level for this product?? What would be the value of this product for an "exceptioanlly good sytem;' in your estimation?

Thanks for the responses. Do keep them coming!

I found this on a website (http://www.wintick.com/6_0/backtesting.asp?ID=34&Func=Report&strType=Stock): (a) Winning Rate = ( Winning Trades / Total Trades ) • 100%. (b) Win/Loss Ratio = Avg Winning Trade / Avg Losing Trade. (c) Profit Factor = Gross Profit / Gross Loss. Among above...