A Non-Correlated Strategy Trading Journal That Shows Profit

[expiated]

One statement follows the other. IF you try to hunt up a new method to avoid discomfiture, by definition, the trader is "method hunting" ... and searching for a new method for all of the wrong reasons.

Got it.

So if one accepts that losses are part and parcel with trading, and is hunting up a new method because s/he has identified deficiencies in the one currently being used which are lacking in other approaches, it is a whole different situation.

I can see how at one time I might have been accused of being a hapless newbie endlessly learning something new, getting excited, placing a few losing trades, getting disheartened, rejecting the entire concept as a result, and moving on to the next strategy; perpetuating a never-ending cycle of failure because of neglecting to ever put in the time and effort necessary for a given methodology to become successful.

But in point of fact, once I zeroed in on a system that evidenced real/genuine promise, I remained with it until it was fully developed and delivering on all its initial potential (and then some) so I can see now the difference between what you were saying and what I thought you were saying, which is subtle, but makes all the difference in the world, so thanks for the clarification, and more power to you!

 

[raVar]

Any particular reason to pay for the long leg of a spread when you're already long the underlying? Seems like a waste of money.

Also, selling at 2-sigma would generate very small premium for - again - something that's already covered. I see the point of the overall strategy, and agree that the theory would be worth exploring, but the implementation you've described does not seem like it would provide any sort of reasonable gains.

I just caught something else.

You're right. When that paper was originally wrote? It talked bout 2 Sigma, because he was doing it with the SPX and Futures.

If this is translated down to equities? It'll have to come closer to the money, and maybe roll a little more often.

 

[gaussian]

In this video, I am innocent Danny and you are Mr. Hallorann explaining options to me.

And then I ask you to explain call spreads.

In an alternate universe, I am Mr. Hallorann explaining to you, Danny, what futures are. And then I explain to you directional bias.

Dude, we should both go visit room 237. It is, after all, Halloween week. Spooky!

You two need to get a room.

Also it appears ravar has blocked me so I can't see this strategy. Shame, seems interesting.

 

[raVar]

Alright, took a few moments this afternoon to get the spreadsheet started. Which if you do not have some sort of software that tells you your performance metrics? I think a spreadsheet (told I didn't hate them mate, lol) is the very least you can do. Because knowing where you stand as far as performance? Is in my mind, absolutely critical.

As stated before, we'll be moving it forward live. Each move will be recorded on the sheets, with position sizes, etc ... so aspiring traders can see how you need to think about starting to keep track of your various processes.

Again, we'll start November 1st. Look first to the SPY on October 31st, and then I'm thinking of maybe using QQQ for the spreads. Doing a bit of quick math at the moment on that score.

As always, to see how we are doing on each process? Check out the tabs in the spreadsheet below. Thoughts, questions ... comments? Post 'em below!
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Simple Longer-Term Hypothetical Non-Correlative Strategy Processes: https://www.elitetrader.com/et/thre...ournal-that-shows-profit.337303/#post-4951437
Spreadsheet: That keeps track of each trade, each process, and then together ...

 

[digitalnomad]

Ok, that's funny ... LOL

I admire your effort, but you’re dealing with ingrates and gunslingers here. Your contribution here is like watching grass grow to them. Some will always appreciate though.

 

[BlueWaterSailor]

You two need to get a room.

We did. It's the one with the 19 year old Eastern European nanny in it...

Also it appears ravar has blocked me so I can't see this strategy. Shame, seems interesting.

It's nothing but the boring old Transverse Paisley Albino Newt strategy; I'm sure you're familiar with it. Alternate shorts and longs on every strike of every stock on the Bolsa de Valores, and buy the CME as a hedge (I mean the building itself. Fine old place, oughta be worth a bundle.) Don't forget to include a pint of Ben and Jerry's to balance out the extra volga.

 

[raVar]

I admire your effort, but you’re dealing with ingrates and gunslingers here. Your contribution here is like watching grass grow to them. Some will always appreciate though.

Oh yeah.

We actually put this demonstration on in another closed off site with traders who try to build their own models; only that version has a higher MTE. Up something like 60% in the last two years. Get's almost no feedback. But like you said, some might appreciate it, and there is usually one or two that I can help out with it. That makes it worth it.

Plus, since I'm already running it elsewhere? It'll take minimal effort. Heck, it's a basic enough approach, used a thousand times over by traders all over the Planet ... so I only spend a few moments each Friday doing the other version? This shouldn't take me but a few more minutes.

 

[Wheezooo]

Also it appears ravar has blocked me so I can't see this strategy. Shame, seems interesting.

Didn't he mock Taleb for having thin skin???
...then brag about antagonizing some whistleblower dude?

 

[Wheezooo]

Well looks like that got me banned. Good thing I didn't let him know how I giggled when he referred to himself as an options trader. That probably would have gotten me a 2*4 to the testies

Oh well, back onto another airplane....arghhh.

 

[imjohn]

Earning an income from trading a smaller retail account, will require a much different approach than say, growing an account with a single intra-day trading process. Of course, that would require that new retail traders understand that mathematically, they will never, ever be able to pull in a living-income from a small $25,000 trading account. We have found that many refuse to accept this truth. And it is truth. It is not opinion. It is mathematical fact, that has been proven time and time again that you cannot pull a living-income in from a such a small retail trading account.

If you're presenting as "truth" that a specific $ amount is impossible, then at what level does it become possible? IOW the minimum amount needed to produce a living-income?

Obviously the answer will depend on the individual's living expenses, so let's assume the income trader has no dependents, and they live in a location with low living expenses. <=$1000/month.