Does anybody know a good money management strategy for writing options? Like what do you do if underlying price moves closer to the strike price of your sold puts?
I can give you only advise on a situation when you stay in a trend for too long. Just take your profits & look for entry points in another markets. Simply put move your money to another market with better entry point & never look back. You have to be a medium to long term investor for doing this.
Yep, it's a major fundamental factor. Besides the dollar index is at its historical lows. So the upside for dollar is much bigger than downside. As you said it may retreat 100 pips but overall my bet is with dollar at least til the year end.
It has to go down based on the interest rate differences. As long as there is no major catastrophe in US. So use any rebounce in EUR as an opportunity to sell it. If of course you are a long term investor as I am.
Why not? With 4 currencies in play your system almost totally hedged. You would be blown up with 1 currency but with 4 pairs you might want to shoot for a higher risk/reward ratio. Just my 2 c.
Sorry ElectricSavant, I don't see there any dependecy of the currency yield on its price. Can you please explain a little bit more.
I got the answer. Thank you.
In my mind it's very interesting system foe those who prefer long term investments rather than speculating. ElectricSavant, enlight me on something.
Is it a correct statement in Forex that if you pick up a positive interest pair and it moves against your position then the interest yield goes...
I don't know if your friend found the holy grail or not but this strategy might work in a bull market which is to some extent ensured by the funds positive returns for the last 3 months. In general this strategy is not bad & in my mind it should be profitable. Now your friend should start his...