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I wouldn't compare hfts to people running faster. It's like saying fishing isn't fair because you're sitting on the dock with a rod and reel, while the other guys are in the middle of the ocean on a boat with nets and cages.

I've never heard anyone with an automated system use the term slippage.

I would say yes. Too many people look to options as a way to make money without knowing anything about the market. The only way to make money is by having some idea about what is going on.

Well, it cannot be done consistently. Where does your edge come from? ie. what makes you better at this than everyone ever?

Do you mean market orders? because the order at which limit orders are filled comes from when they are received.

Odd lots do not get filled first. The orders that arrive first get filled first.

I'm assuming you mean the other way around. I've had a lot of good luck with opening condors thursday morning when the weeklys open and then closing them later the next day.

Don't put any faith into TOS for backtesting. Their end of day quotes are near useless.

I think that if your strategy is really worth trying to hide from brokers, it is going to be too complex for them to reverse engineer. Mirroring your trades could be a problem, but I'm pretty sure that is illegal and hard for them to do.

Yeah, you don't really want to get close to a maximum loss because your objectives change very drastically, and obviously because of the money you hemorrhage. With options, you leverage yourself in a lot, especially with vertical spreads so it makes a lot of sense to not invest your entire...

Event driven arbitrage is a much easier example to work with. They don't have statistical confidence on their likelihood of being correct, but their gains and losses outweigh the probabilities. If they know they losses aren't going to be much bigger than there gains, their statistical confidence...

Won't the average gains and average losses be essential when evaluating the value? If a strategy proves to be correct 90% of the time over 1000 instances, but has an average win of 1 and loss of 5, I'm pretty sure we can put a lot of faith into this system. Even though we don't know with a...

Let's make this easy and say we have a 90% success rate(over the course of this fictional test). So we have 90 winners that profit an average of $1 and 10 losers that lose an average of $5. I could say that this strategy is a positive expectation strategy, but I can only say so to a certain...

If you know that you have a 90% success rate then you should be able to calculate the expected value fairly easily. I still think you will be able to back test it and come up with some meaningful numbers.

Please, I would love to see that thread.

At the moment my view on the strategy, is that it is disliked for the wrong reasons. I think people frown upon condors mainly because of the bad traders that trade them, not for any strategic reason.

That implies you can make money trading bull spreads and bear spreads, when we already discovered you can't make money trading credit spreads.

So how does anyone make money if we denounce credit spreads?

What is the difference between an intraday strategy and a technical indicator?