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Today the mkt rised a bit, just enough to let us break a new high-water mark. In fact, we touched for the first time 139.4K, while the current PNL is 134K (157.4 days elapsed, $852 daily avg). 44% current funds usage. 12.7K commissions. ES FUT 20220916 GLOBEX 50 E-mini S&P 500 [ESU2...

ES did not vary too much since the last check, currently around 3845: ES FUT 20220916 GLOBEX 50 E-mini S&P 500 [ESU2, 495512566, mult: 50] PNL situation is ok, with 125K profit (156 days elapsed so far), 12.6K commissions and 50.8% current fund usage. The negative...

The week ended without much excitement, with S&P slightly declining: Current PNL 116.6K, with 6 layers waiting to go eventually in the green territory and about 50% of funds usage. 152 days elapsed so far, 12.5K gone in commissions: In the previous post, we have seen a simple example of...

Note, marginally, that this (bear put) spread also slightly reduces the overall margins used (about 65.8K in this case). I made a (payoff) picture to help visualize the "logic" of the above simple example of a "protection" scheme, which can be interpreted as a form of defence against a "black...

Yes. I think they (playbook) mixed up the picture and description in the bull put spread. Also, the picture shown by the OP should be a bear put spread as you correctly point out. https://www.projectfinance.com/long-put-spread/

urgh did the playbook get this the other way round ? https://www.chittorgarh.com/compare-options-trading-strategies/long-put-vs-bear-put-spread/3/12/ https://www.optionsplaybook.com/option-strategies/long-put-spread/

call ? https://www.optionsplaybook.com/option-strategies/long-put-spread/ ??

You do not need 2 accounts to be long-short at the same time. That is a quite naive view. It can, and should, be emulated by software. One possible advantage of that is as follows. Assume ideally you have 2 different strategies both with similar performances. Imagine that the maximum exposure...

- Additional sources of hedging - In this "public illustration", we have seen an example of algorithmic trading of options, where the main idea is to scalp long and recover hedging orders through "information transfer" (rollover) while continuously grabbing option decay. The scalping action...

The current PNL situation is 109.2K, with a maximum reach of 122.1K, before the recent large move down. Commissions 12.2K: Current margin usage is 79.9%. Still too high, but it's just the consequence of the large "load" on the large market move, to grab additional profits. And the reason we...

No, there has been no fund transfer, since we started.

Very busy week for me. In the meantime, the market is recovering a bit after the large move downward we have seen last week, where I recorded a minimum of 3639. Currently about 3886: We have recovered a good part of the DD and slowly transforming all the new positions into additional profits...

Today we have recovered a bit, returning to a green area. Quickly going from -56.2K to +28.3K (that's right, more than 84K). Well, that is the good part of trading FOPs (instead of FUTs), at least DD, even if sharp, is often short-lived, and decay is certainly a huge ally. Also, that is the...

Today (Monday) and Friday the market has been going down hard and fast: https://www.nytimes.com/live/2022/06/13/business/stocks-bear-market "Stocks dropped around the world, investors dumped government bonds, and cryptocurrencies crashed as the U.S. stock market fell more than 20 percent from...

This should hold for next week :-)

Here we have another practical example of how we turn a negative layer into a positive one by "information transfer" and "stop-loss recovery" mechanisms: Transfer: ES FOP 20220624 2800 P GLOBEX 50 → ES FOP 20220819 2750 P GLOBEX 50 (This was closing negative and now is 7.3K.) The green arrow...

Touching today 120K, which is good news. 11K in commissions, even better news for the broker. 129 days so far. Current position 180. Margin usage is 55.8% (1.2M). We are slowly turning all layers positive.

In 2022, there still exists someone trading discretionarily? :-) You should not spare constructive criticism, just because he is a gentleman :-)

Yesterday I did not make it, as I was too busy. Let's see what's happening today. We left the S&P futures at level 4161, and right now we are just a bit below (4150): ES FUT 20220617 GLOBEX 50 E-mini S&P 500 [ESM2, 477836957, mult: 50] I have started another layer (pretty safe as you can...

To reinforce the concept, the "mechanical" nature of this approach makes it quite robust. This is the opposite of prediction or "signal"/"pattern" or "learning" based strategies, which instead live under the delusional assumption that the market is somehow putting out somewhere information...