A free Trading System that guarantees at least 180% p.a.

Status
Not open for further replies.
Another anecdotal note:
I always was thinking that an option seller should keep the credit fully w/o any risk, because he practically lends money.
But it wasn't the case (with the other hedging mechanisms, especially zero-delta-hedging). And I couldn't understand this, because logic tells me different.
So, in recent weeks I tried to find a way for this problem (keeping the credit fully).
And only by accident I rediscovered that little note of mine from 5 years ago in my archives about this simple system...
So, in the end it proves me right, the credit can guaranteedly be kept fully. Logic always wins!...
 
Last edited:
We're forgetting that botpro is using generated time-series which is fine for prototyping but then requires testing on real data, time & sales to estimate slippage. Without the last part it's just mental masturbation.
It's entertaining though.
 
d08 said:
We're forgetting that botpro is using generated time-series which is fine for prototyping but then requires testing on real data, time & sales to estimate slippage. Without the last part it's just mental masturbation.
It's entertaining though.
More...
You are right, but it has a very reason: botpro is (financially) a poor man, so he does what he can do best under these circuimstances: doing research and simulations...
What else can I do in this fu*king racistic & discriminating country I'm forced to living in? Nobody gives me any chance anymore!
I think they have a central database where they have put me in wrongly as a bad or dangerous guy, so that no employer gives me any chance anymore
even when I'm a top IT man doing programming for more than 20 years, esp. C++ programming.
And I'm "overaged" and have a migrant background (in this country that's very important!), even after more than 4 decades I'm living here...
So, tell me what should I do?!
 
Last edited:
botpro said:
You are right, but it has a very reason: botpro is (financially) a poor man, so he does what he can do best under these circuimstances: doing research and simulations...
What else can I do in this fu*king racistic & discriminating country I'm forced to living in? Nobody gives me any chance anymore!
I think they have a central database where they have put me in wrongly as a bad or dangerous guy, so that no employer gives me any chance anymore
even when I'm a top IT man doing programming for more than 20 years, esp. C++ programming.
And I'm "overaged" and have a migrant background (in this country that's very important!), even after more than 4 decades I'm living here...
So, tell me what should I do?!
More...
www.freelancer.com
 
@d08: with GBM and BSM one wonderfully can simulate the markets, try many things out, can develop and test systems.
Yes, in the end one has to try it in the real market, true. But in my case I unfortunately don't have the funds... I'm financially a poor man... :-(
 
botpro - i think you should check TastyTrade videos
specially the segment TastyBite (for small accounts)
you should open a paper account, and check things,
this thread was fun, but it wasn't serious because you are missing things that are basic.
you can even check all the things related to covered calls (which is basically your idea with an hedge which is not realistic due to gaps, spread commissions, multiple crossing, understanding random walk of the market, ...)
 
If you use American style then you will mostly be trading stock. And in any case not many indices stay around 40% IV month after month. The problem with trying this with stock, especially the more volatile ones, is the very real risk of an overnight short squeeze, or just a fairly frequent large premarket move up before you can hedge. Your losses could easily be 10-20, even 100% if you pick the wrong stock.

Only trying this on the safer Euro-style indices will result in a much lower return, basically it would be the Buy-Write index BXM:

https://finance.yahoo.com/echarts?s=^BXM+Interactive#{"range":"max","allowChartStacking":true}



botpro said:
Yes, a good question indeed :) as the US has mostly only the indices as European Style.
I'll study whether that condition in the system is really necessary or not.
More...
 
Last edited:
botpro said:
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?
More...

No it is not zero risk because the put has a cost so your loss can be limited but it is not $0 risk. Even if you find a $0 risk collar to put on, the actual return should match the risk-free rate of return

Your 180% is probably based on some unrealistic annualization of a covered call strategy which has been pointed out many times to have risk just like a short put.

The lack of option knowledge on this thread and in ET in general is appalling.
 
Shay said:
botpro - i think you should check TastyTrade videos
specially the segment TastyBite (for small accounts)
you should open a paper account, and check things,
this thread was fun, but it wasn't serious because you are missing things that are basic.
you can even check all the things related to covered calls (which is basically your idea with an hedge which is not realistic due to gaps, spread commissions, multiple crossing, understanding random walk of the market, ...)
More...
But think about this: the problems you list (gaps, spreads, commission, multiple crossing) are given also for the other hedging mechanisms and option selling strategies.
I mean these problems are common to all. So, what now?...
 
Last edited:
Status
Not open for further replies.
Back
Top