Iron Condor Money Management

Quote from spreadn00b:

I think the common theme to managing ICs is that you can't really "manage" ICs.

Good luck.
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Agreed. Especially with the murderous dealer spreads in SPX that will quickly eat up your position.
 
Quote from dcvtss:

Agreed. Especially with the murderous dealer spreads in SPX that will quickly eat up your position.
More...
The 'management' of IC's, as a rule, is to get out when your predetermined stops are hit since you are moving from an already poor rr to a worse rr. I presented some alternatives earlier to stimulate some discussion.
Best
daddy's boy
 
Avenue, I trade IC's regularly using the TOS platform.

If you follow Erik Epps IC spread he recommends sell 50 points away from strike and buy 60 points away on SPX.

I have an exit or adjustment on any side which gets to the mid point or 25 points from breach,limiting on the returns at times but certainly keeps the big kill off the portfolio doorstep.

note.. Erik uses a exit or adjustment at 20 points from breach.

Hope this helps.

Sometime slow like the turtle is better than dead like roadkill.

Best to you and your trading.


Lloyd
 
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