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Where are you getting backtest data from?

I've worked in the wealth management business and by some of the points you make and questions you ask, it's very plain that you know next to nothing about it. I'm not trying to put you down, but I can tell you that working for a BD or RIA is being a sales person. You say "I want to invest money...

The longs have to get scared out/margin called out big time, I don't see that happening here unless there is some kind of shock event. Rates aren't going to do it, likely will cause some choppy volatility or even a down move but I don't think it'd cause an all out crash.

If you're using these puts as a hedge, then you're probably not necessarily trying to profit by having them but rather avoid a loss, yes? If so leave them alone. I don't know anything about your overall strategy but what about reducing/taking off the other side of the the trade so you can take...

Wow musk is a d*ckbag

I don't have kids but I always thought the same. You want to be a lawyer? Great. Engineer? Great. You want to major in English and study the classics? Enjoy your loan payments. english

My experience may be anecdotal but less so than most unless they were in wealth management also. I pitched thousands of people, you notice trends after a while . A neighborhood I used to live in is another perfect example, the doctors and lawyers had nice houses, but the guys who owned...

Having spent time in wealth management, the majority of clients and people I was going after who had $1 million + accounts as prospects weren't high salary professionals like doctors and lawyers, yes they make way above the average income etc. but the majority of people with REAL, F-You money...

Ok thank you!

You're probably right in that most people buy stocks with it. I'm not familiar with their platform but I'd have to assume there is some reason people would hold cash in those accounts. It seems like Robinhood just makes money on the back end in every way possible with rebates, securities lending...

Would it be feasible to buy cash T-bonds (say CTD for instance) at whatever leverage ratio, say 10:1, and hedge it with short futures contracts and just collect the carry on the bonds while being delta hedged? This assumes borrowing at repo/libor rates. Am I missing something? This seems too...

Most asset managers charge a fee of 1.-1.5% of AUM so if Robinhood is making approximately that amount in cash in client accounts they're just using a similar model. Plenty of outfits make big $$$ getting paid 1%. These days about half of the private wealth management business runs on making 1%...

The college vs. no college argument is completely dependent on the person in question. Steve Bisciotti the owner of the Baltimore Ravens also owns a huge headhunting firm which is where he made his money originally. He was a liberal arts major, he's now a billionaire. Ultimately it comes down to...

I appreciate the response. I wasn't thinking of necessarily black swan type of events but using the risk allocation of the portfolio for highly levered directional types of bets in either futures or equity options, something like that.

I've been thinking about this same concept. It rings similar to what Nassim Taleb describes as his "Barbell" approach. For instance having ~95% of the portfolio in 'safe' yield based investments like T bills/notes or highly rated corporates (it doesn't specifically matter for this explanation)...

I know this is an old thread but just curious, what are you using for your function of the price of the contracts?