Especially when Monday is Labor Day this go around....LOL
Love the volatility of Neke's P&L. I know it is not good for a traders mind set but he seems to have a way of dealing with it.
2014: The Battle for Survival
- Thread starter neke
- Start date
Especially when Monday is Labor Day this go around....LOL
Love the volatility of Neke's P&L. I know it is not good for a traders mind set but he seems to have a way of dealing with it.
I don't think volatility is the issue since you don't sell options, it has something to do with the way you bet on mean reversions. This isn't your first massive loss from trying to fade a very strong move.
You need a daily stop loss, 5% ideally but for your aggressive style probably 10% max.
If your account is down 10% liquidate all positions and stop trading for the day.
But i bet you cant do that as it would happen too often.
Losing 30% of your account in one day is pretty insane. If that happens two or three times in a month, it could take you years to recover.
Last edited:
Neke, it was only a two percent move. Were you long a ton of delta or did some spread trade widen or was it intraday trading?
Yes, long a number of calls on expiration day, and with big size - occasioned by my acceleration formula. Timing was very wrong, especially as I did not limit the position to one in accordance with acceleration rules. All the prior gains were like a bait that prodded me to be more aggressive, and when I did - whack!
Didn't take long to hear from you, friend. Tell me of your partnership experience.
I think we've all made that mistake at some point and we all probably will again.
Sucks for the loss but knowing you, you will bounce back.
My previous post in this thread was 2 months ago, so it actually took quite a while. I don't want to beat the guy who is down, so let's just wait for the end of month...
About the partnership, Marsman's partner cleared 14K after 3 weeks, I would call it a pretty decent return, specially on only 10K risked... I figured a guy like you who doesn't mind to blow 80K a day, 10K is peanuts... Me and my silly ideas...