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    Option vs Spot trading backtests

    After you backtested your strategy successfully with spot historical data I don't believe there is a need to backtest it with options. The transition to options from spot is straightforward: 1. Sell puts if you get bullish signal. 2. Sell calls if you get bearish signal. 3. Sell straddles...
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    Option vs Spot trading backtests

    I am just curious why you can't use historical FX spot data for backtesting? Does your strategy work with spot FX?
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    Option vs Spot trading backtests

    Of course in futures it's a lot more rigid than in OTC FX. What I am saying is that I believe that they price it off the futures contracts price not spot price ( in FX they are called forward contracts ). Basically they are doing that to account for the overnight interest.
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    Option vs Spot trading backtests

    I am pretty sure that they are actually options on futures contracts (with very wide bid/ask spread ). I suggest that you ask your broker ( in case of IG group they are actually market makers ).
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    Option vs Spot trading backtests

    OTC FX options are tied up in price to FX futures not spot.
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    POLL: Do you trade ETFs?

    You won't be able to take advantage of the decay by day trading them.
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    Whether an options writer or buyer has better edge? Why?

    The dynamics is different because there is no need to pay premium for the insurance. Those asset classes are themselves insurance.
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    Whether an options writer or buyer has better edge? Why?

    So if he buys far out of the money options he would be consistently making money. I wonder if he actually tried it?
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    Whether an options writer or buyer has better edge? Why?

    We are talking about stock options, right? Not bonds, gold etc.
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    Dow will crack

    Why not after 2012?
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    Computer for trading

    What minimum hardware would you people recommend for IB TWS? The goal is to have it running without any disconnects.
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    Bullish or Bearish?

    Bear. Waiting for a pullback and then I might change my mind.
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    please recommend good long term fundamental-based investing books...

    I guess the long-term investment is a lot of hard work for the purported 20% annual return.
  14. G

    VXX.ID S&P 500 VIX Short-Term Futures Index

    This is not index. This is etn ( symbol VXX ) and it should be available for trading with all this brokers.
  15. G

    Monte Carlo Simulations?

    But don't they have the feature to randomize your random sequence to get a new sequence every time you run it?
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    1/4% Tax on all stock trades pushed in NY Times today

    Exactly, stocks should be taxed as futures under 60/40 rule.
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    Sell ES 931 Objective 780

    Google would be a good entry point to learn stuff online.
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    TWSLink - universal plugin to trade an InteractiveBrokers account

    What do you mean by "if you have a trade robot on one side"? If one has a trade robot then he has already a program that sends trades to IB, hasn't he?
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    TWSLink - universal plugin to trade an InteractiveBrokers account

    Why does one need TWSLink to trade an IB account if TWS is already running?
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    Selling Calls To Take Advantage of SPY Drop to 82 By 18-Sep

    Shortie, your short put position is huge for a beginner. Make sure you have enough margin.
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