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If I remember my CFA material correctly, options are priced so that a delta-hedged option position will return the risk free rate, assuming realized volatility ends up equaling implied volatility. It's just reversing the Black-Scholes equation and solving for i (risk-free int rate). So, if you...

On a related note, I think I know the answer to this question, but I'll ask it anyway.... I was registered with FINRA (not anymore), and currently work for a trust company. I manage stock portfolios. However, our firm does NOT transact or otherwise touch futures. Not allowed in any sense. I...

This isn't a direct answer to your question, but I have seen some futures spread traders (who don't use the autospreader) divide each leg into an order to "work" and an order to "lean on." Start with the least liquid leg - you "work" that to ensure you get a decent fill. Once you are filled, you...

If the stock spikes far above the strike on your written options, your stock will be called away, and you will be left with a naked short position on your futures contract (which is now underwater).

I'm surprised it took so long for the financial media to figure this out. It's the only way they can hope to turn a profit. Not everyone is going to use their overpriced margin loans.

If the crash is due to economic recession, then gold will do poorly, because gold protects against inflation, and most (not all) recessions are deflationary in nature. The big exception was "stagflation" of the 70s, which put gold on a rocketship. Another positive for gold is geopolitical...

Tradingview is free (with the option to upgrade for more features) and is web-based. You can use the chart to set up your trades and execute on Robinhood if you want.

SHY only invests in T-Notes with 1-3 year maturities. Very short term bonds/notes don't have a lot of volatility. TLT invests in bonds with 20+ year maturities. IEF is "intermediate term," ~10 year maturities. The TLT is probably the most volatile of the standard treasury ETFs. There are...

Not familiar with the London prop scene, but I thought that the main benefit of joining an arcade is that they pass through rock-bottom members commission rates to the traders. I could be completely wrong on this though. If you are paying retail (or near-retail) rates then I don't see the...

The colors correspond to the colors of the candlesticks above. Red means the price dropped during that time period, green it rose. Some believe that the red/green provides valuable information - i.e. decreasing volume in a downtrend implies that the trend may be coming to an end. Do a search for...

Read this article by uber-Financial Planner Michael Kitces. He reviews software across the spectrum. A lot of it will be overkill, but this article is a great starting point. https://www.kitces.com/blog/best-financial-planning-software-reviews-financial-advisors-guide-on-how-to-choose/ P.S...

Bill had a good answer, and I would also add the example of frequent flyer miles as a "utility token" equivalent - assuming you could buy and sell frequent flyer miles on the open market. That being said, 90% of ICOs are scams, 9% aren't scams but blow up anyway, and the other 1% MIGHT break...

1. Yes, the sign matters, so negatively correlated assets/strategies help a lot! 2. See secretsanta's correction to my post above. I don't want to provide incorrect info! 3. Optimizing weights requires a lot of computing power above 5 assets, as your correlation matrix grows exponentially with...

I'm not sure of all the math behind it, but I'm pretty sure it's a closed-form problem. It's in pretty much every portfolio management textbook and is on all of the CFA tests. If you google "when to add an asset to a portfolio" you may get a source that will go a little deeper and answer your...

Mathematically speaking, if the Sharpe Ratio of the new asset is greater than the Sharpe Ratio of the existing portfolio times the correlation of the new asset with the existing portfolio, then it is efficient to add the new asset. (Rnew-Rrf)/STDEVnew > (Rexisting-Rrf)/STDEVexisting * Corr(new...

Another useful tool of the Sharpe ratio is position sizing. It is mathematically linked to the optimal Kelly bet formula. The "continuous Kelly leverage" is calculated by Sharpe/STDDEV. So, a 50% return/25% STDDEV, K = 2/.25 = 8x leverage to maximize lifetime log return of the account. Of...

Zions Direct (a subsidiary of Zions Bank) uses IB for clearing.

Interesting bio! One of the things that I've noticed about trading stocks using a model is that the high degree of correlation makes risk management very difficult. First of all, if the market is strong, then you will get a ton of breakouts all at once - especially in the same sector (e.g...

That sounds similar to "MAC"'s strategy (who was influenced by Al Brooks, who I know influenced you). He even shoots for the same win rate and 1:1 risk/reward. Did you ever directly incorporate his strategies into your own?

Definitely what Mav said. You can buy every standard combination of CL calendar spread in one transaction. They even have their own orderbooks, and will often get you a better fill.