Karen the Supertrader - TastyTrade Hybrid Experiment

Maverick74 · Jun 4, 2016

Hittfeld said:
Certified long term results or just magazine reports? Thanks

One of the beauties of life sir is you get to believe whatever is you want to believe and in the fashion in which you want to believe it. So if it serves a function in your life to believe Taleb is a failure, if that justifies the things you hold dear, if it just helps you get through the day, then by all means, your life is your life and have at it.

Hittfeld · Jun 4, 2016

I don`t believe anything - at least when it comes to money and I won`t consider another person a failure. Certainly not.. Just wondered, why we required certified accounts from Karen and not apply this due diligence to others. If you know of any data available easily - I would be grateful. It wasn`t meant to be bashing.

Maverick74 · Jun 4, 2016

Hittfeld said:
I don`t believe anything - at least when it comes to money and I won`t consider another person a failure. Certainly not.. Just wondered, why we required certified accounts from Karen and not apply this due diligence to others. If you know of any data available easily - I would be grateful. It wasn`t meant to be bashing.

Karen is being accused of fraud, Taleb was not. Karen's investors are going to lose everything. Taleb's are not. If charges are brought before us that Taleb or his associates defrauded someone then by all means, let the investigation begin. But Karen intentionally at least from the period 2014 committed fraud and actively tried to cover it up.

isotope · Jun 4, 2016

optioncoach said:
First, selling 100 ES straddles is too much risk to undertake in my opinion but I know you were just asking a hypotehtical.

Delta hedging is something maybe market makers do with their almost no transaction costs and constant hedging I assume. For anyone else, delta hedging is a way to make your broker rich in churning your account and serves no useful purpose. When I sell straddles ATM or directional, I have a market price level where if it hits either or the straddle gets to a certain value I bail.

If the straddle decays nicely but I still want to do it, I will buy the wings only if I like the Iron Fly that would result.

Honestly I rarely do this strategy because i want the right conditions to make me comfortable, everybody is different. I prefer when ES is setting up to range and vols have good chance to pull in (it is more a vol trade than a theta play). Now I perfer trading volatility and ignoring market direction all together because it makes it easier to monitor.

Thank you for your long response with which I completely agree. Yes indeed my question was hypothetical.
I undestand that scalping large negative gamma is primarily a loss control exercise and an up-hill battle.

Surprise · Jun 4, 2016

Hittfeld said:
I don`t believe anything - at least when it comes to money and I won`t consider another person a failure. Certainly not.. Just wondered, why we required certified accounts from Karen and not apply this due diligence to others. If you know of any data available easily - I would be grateful. It wasn`t meant to be bashing.

In this business if you dont provide a verified track record then it is just hearsay , this applies to Taleb as well no difference .

Maverick74 · Jun 4, 2016

Surprise said:
In this business if you dont provide a verified track record then it is just hearsay , this applies to Taleb as well no difference .

You are confusing track record with fraud. There is a difference.

Surprise · Jun 4, 2016

Maverick74 said:
You are confusing track record with fraud. There is a difference.

Yes cant say he is a Fraud ...

Maverick74 · Jun 4, 2016

Surprise said:
Yes cant say he is a Fraud ...

Right, fraud requires evidence. That's how it works in this country. Thank God for our court system or we could convict people we don't know on online message boards.

newwurldmn · Jun 4, 2016

Maverick74 said:
Karen is being accused of fraud, Taleb was not. Karen's investors are going to lose everything. Taleb's are not. If charges are brought before us that Taleb or his associates defrauded someone then by all means, let the investigation begin. But Karen intentionally at least from the period 2014 committed fraud and actively tried to cover it up.

Her investors will be just fine. They know what the value of their funds are as she published the nav and no one is doubting the veracity of those numbers. She just took fees that she shouldn't have.

In the end those fees will be disgorged, she will pay a fine and prob be censured. The fund will be unwound.

The unrealized losses are just accounting like goodwill on a corporate balance sheet.

Maverick74 · Jun 4, 2016

newwurldmn said:
Her investors will be just fine. They know what the value of their funds are as she published the nav and no one is doubting the veracity of those numbers. She just took fees that she shouldn't have.

In the end those fees will be disgorged, she will pay a fine and prob be censured. The fund will be unwound.

The unrealized losses are just accounting like goodwill on a corporate balance sheet.

Huh? The investors claimed all their retirement money was in the fund and the NAV was NOT accurate as she based on the NAV on REALIZED losses and not unrealized losses. Her NAV is still showing the fund to be profitable. LOL. Of course that 100 million dollar loss will have to be reconciled, but like you said, that's just simple accounting.