No happy face!!! SAD face! Up 40 dollars in a week!?! Why not just trade micros for that kind of gain. :-(
Oh one could. Without question. Were it me? I might do that very thing.
Something I want to stress now, and you'll see me say it a billion times.
This is
only to highlight the principles of non-correlation. It's an inefficient use of Buying Power, and there are a million ways to apply that principle. Almost all of them better.
Earlier in the thread, I mentioned I have been running this example, for some traders I'm trying to help. I've been running the same example, in Futures. I've been showing it to them for years now. Here's
the link to that particular spreadsheet that's been running for a few years now ...
That is using the /ES, and SPX Call Options, as you'll see in that spreadsheet.
I show three different capital models, to show them how capital can be adjusted, for any given strategy for different results, and how they should
consider MTE for whatever model they wish to run.
But I flat out refuse to do it the best way possible.
They've asked me what would be the most efficient ratio's for spreads, to the Futures I'm running.
I won't do that either; though I do tell them it needs tweeked.
I basically tell them that's stuff they have to work out for themselves. Heck, I didn't have
any of this when I started out in the 1990's. There's a lot of value of banging out stuff for oneself.
This is all, to highlight
principles of non-correlation.
If it was the BEST way possible to do it? Well, heck, that stuff is in my own portfolios. And that I'm not sharing. Heheheh. First, because I'm under contractural obligations with Partners, and at the same time ... well ... let's face it ... I'm just not going to share it.
