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So it’s not just Poor’s man wheel then? You are saying you never take possession of the underlying, right?

Can you do two back tests - one starting prior to 2008 crash and one after it? What is the period of above back tests?

Imho, there’s no edge in this - you are simply taking on risks that someone is trying to offload. Not yet but I am contemplating this. I am thinking 30% premium selling, 30% long VXX, 30% cash and raise or lower these based on discretionary trading.

Common guys, can we do better than sarcastic discouraging remarks. I think his account is too small for what he’s trying to achieve, but I don’t think he’s that unreasonable. I am a bit concerned about below statement.

What do you mean by “diluting trading skill?”

Are you going to leverage that?

Unless stock gaps up through your stop.

What equities are you looking at for this kind of options trading?

https://www.elitetrader.com/et/threads/lime-returns-home.353602/ I know Lime guys pre-Lightspeed were pretty tech and business savvy, so I think they are worth keeping on your list.

We got zero commissions and it’s possible we will have (near) zero market data cost. We may be entering the golden age of retail automated trader.

If you add context, you will get the right result - “AQR + HFT”. The reality is that the most knowledgeable contributors have the least to gain from posting here, so whenever and whatever they post, I give a big mental thumb up! Would it be nice if they just laid it out in layman’s terms? Sure...

Dude, you can’t google? All you need is the keyword to unleash a never ending chain of information.

Stoikov?

Later than 40!? Nice!

Are you talking from perspective of overall portfolio? If you are always in position and just increase/decrease weighting, then I understand but that sounds more of a buy and hold (or managing existing position). But when you want to be in cash most of the time and enter position only when...

Not even close - recovery was too fast.

Well, that’s my theory as well - reduce position size instead, but I was surprised how large the DD was and how long it took to recover compared to stop loss method. Granted, we may never see 2008 equivalent in our lifetime.

I like how he included 2008 in the beginning of the run to make the point.

Felix started daily podcast where he spits out lots of interesting info. Since he buys options, it’s good alternative perspective to the premium selling crowd. P.S. No affiliation other than I am a subscriber to his alerts service.