Global Macro Volatility Arbitrage Strategy

E

etfarb

Please don't call me an idiot, im spitting my thoughts and would love some clarity.

I'm working on a Global Macro strategy that will trade all the asset classes available (Stocks, Bonds, Currencies, Commodities) and is going to aim to take a trade between once to twice a week (not too sure if this is to generous or not - but would love to hear back on the frequency) - but my account size can't stomach overnights on large things like oil and what not so I need to use options to trade.... Since I will be using options should I apply a Vol Arb Strategy?
 
Quote from etfarb:
... Since I will be using options should I apply a Vol Arb Strategy? ...
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Do you mean exploiting the difference between actual and implied volatilities? How would this work in this case?
 
Quote from etfarb:

Please don't call me an idiot, im spitting my thoughts and would love some clarity.

I'm working on a Global Macro strategy that will trade all the asset classes available (Stocks, Bonds, Currencies, Commodities) and is going to aim to take a trade between once to twice a week (not too sure if this is to generous or not - but would love to hear back on the frequency) - but my account size can't stomach overnights on large things like oil and what not so I need to use options to trade.... Since I will be using options should I apply a Vol Arb Strategy?
More...

After reading your options trading idea, I am now thinking of developing a Systematic Low-Frequency Volatility Dynamic Arbitrage Strategy.
 
Quote from etfarb:

- but my account size can't stomach overnights on large things like oil and what not so I need to use options to trade
More...

By large things do you mean 1 lot of futures is too big?

If so, what about using .. etfs.
 
Trading global macro with an account that can't handle o/n swings in stuff like oil is doomed to fail, options or no options. Global macro requires deep pockets (relative to size of risk).
 
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