Imagine this: the net impact of a drop of a stock position can be eliminated by buying a put.
Isn't that zero risk then?
It's not. Hedging is a risky business.Imagine this: the net impact of a drop of a stock position can be eliminated by buying a put.
Isn't that zero risk then?
No, the system is freely scalable to any amount (ok, since a basic hedging is involved one has to take care of the commisions for hedging; but as said: this is just a simple hedging , not delta-hedging, meaning: under normal situations only a few hedging trades). The minimum is 1 contract, and one must have the cash for the corrosponding number shares of the stock, plus commissions.Funny thread! I'm guessing if it does work then it only works for accts with thousand dollars or even less.
No, as said: it is a system free of any costs.Botpro then makes more selling it than implementing it himself.
At this stage I don't see any reason for such a step.Mods should move the thread to entertainment or chit chat or something.
No, I don't have that much money, but I'm willing to take the obligation.Great! Send me the legal docs and proof you can personally cover the guarantee and I will have a German law firm I worked with in the past look at it.
Marketing this system? It's a free public domain system, man.Additionally please send me any registrations you have for marketing this system legally.
If I had that much money, I sure could fulfil this. But since I don't have, you have to take my word of my obligation.Edit: upon our new agreement you only need to show escrowable assets of 1.9mm
If the trading program can react immediately to market changes, ie. in this case within few seconds,It's not. Hedging is a risky business.
You can't eliminate uncertainty.
About greeks and underlying.
But one usually buys insurance to eliminate the risk...Um no, because the insurance provided by the put option costs money.

No, I don't have that much money, but I'm willing to take the obligation.
Marketing this system? It's a free public domain system, man.
If I had that much money, I sure could fulfil this. But since I don't have, you have to take my word of my obligation.
But as said: you are responsible to apply the system in the market. IMO one would need a near 24/7 market, or multiple markets to "simulate" a 24/7 market.
This is, as said, because one needs a market without any overnight gaps in the price of the underlying.
We can make it simple: let's just simulate a 24/7 market using GBM or something similar and using BSM or something similar. What about this?
Then you could see without any risk whether the system works or not.
I really don't understand your reasoning: I'm giving away a system with certain properties, free of any cost, and you still want some guarantee.I can't take your word on a guarantee. You have to supply proof that you can fulfill the guarantee. That's what a guarantee is. It's an uber-strong promise.
Unfortunately I can't pay my mortgage with simulated pnls.
If you can't guarantee 180% return, then how about getting an insurance policy? If your returns are robust, Lloyds or someone else will insure our contract on your behalf.