Questions for you:
1. How do you determine support?
2. Since you sell ATM are you buying OTM or ITM?
3. If your support assumption is wrong?
Investing in stock market indices via option spreads beats buffet?
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1. How do you determine support?
2. Since you sell ATM are you buying OTM or ITM?
3. If your support assumption is wrong?
Supports can be seen on 4 hour , daily .weely and monthly charts.
I sell atm and buy future and much lower put , sometimes I buy call ATM + 100 and wait
If my anylysis is wrong , I will buy a naked call lower , after expiry and monthly calls.
After 2 losses on calls , I wil buy double orignal size.
technical analysis dax signal
By the way IGNORE the other clueless idiots , they are just vendor's goons
Not so, they knew a lot more than you gave them credit. I understood where they were coming from.
Is that what others here called Martingale?
not really
stock indices are well supported by fed , stockmarket failing fund manager and all other funds
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I read a nice article about matching Buffet's returns here: http://seekingalpha.com/article/1107001-making-buffetts-alpha-your-own
But you doubled down when it went against you, I thought by definition that was a Martingale strategy?
I often looked at BRK financials. I noticed they had $100B in debt and $100B in "other liabilities" which I assumed was their insurance floats (free money to them). So with equity of $270 B, for every 1$ of equity they could buy $1.74 in investments. I need to figure a way to leverage at 1.75 without the risk of margins call and paying high interest rate on my borrowing.
Trading the edge , usually after 2 or 3 losses you will most likely get your losses back , on index futures , on monthly contracts with at least 30 days to expiry.
My strategy is 1,1 ,2 , 2 (6 %) ,4 ,4 and I start with 0.5% , 0.5 % ,1% ,1% ,2 % ,2%
or you can do 0.25% , 0.25 % , 0.5 % . 0.5% ,1 % , 1% = 3.5%
Most traders start at 2 % or 5 % or 10 %
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