Great in theory and we must have a baseline for comparison but when derivatives are used with none linear averaging and underlying, how accurate is sharpe?To start with it would be helpful to understand that "It's pretty correlated with the S&P 500 but there are both a larger upside and downside" (which is what we call Beta in the finance industry) is mutually exclusive with "a better sharp ratio" (spelled Sharpe and usually capitalized, after William Sharpe who came up with it). It's constrained by math, the Sharpe Ratio is a formula not a opinion. That formula is defined as:
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You just described a strategy with a higher portfolio standard deviation (the denominator of the Sharpe ratio) than the index, hence a smaller Sharpe ratio than simply investing in the index.
You emphasize that you want to do this legally, which means you'll need to actually convince people who know about these things to invest in you. If you use 16 words to describe what the industry refers to using one word, Beta, then that's not going to happen. If you make a claim at the end of sentence that is contradicted at the beginning of that same sentence, it's not going to happen. You need to be able to convince people that you're a competent professional, and without any malice I think you're not quite there yet. As I've suggested a number of times, there are awesome free finance MOOCs out there by some of the best professors at some of the best universities. You'll learn a ton, it will make you a better trader, and you'll be able to sound like a professional which will also help you get better because other professionals can engage with you at their level. Sincerely wish you luck in your journey, just know that it will be a journey of at least a few more years.
How do I 'sell' an investment strategy?
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yes, but from whom? When was last time any member in here charted a yacht?
I was pointing out that you need to know wtf you're talking about before anyone will give you money, not discussing the merits of using a Sharpe ratio on an options strategy which was the OPs assertion, not mine!
You can recoup some of the costs of yacht ownership through chartering out your yacht. Tim Sykes posts here and he was on "Below Deck".
Last time i heard of sykes, he missed his car payment . Just saying ...