Karen the Supertrader - TastyTrade Hybrid Experiment

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Maverick74 said:
No, I don't set any goals. I look for opportunities. They are either there or they are not. It's like anything else in life. I can't make opportunities suddenly appear just because I want them to be there. You can't impose your will on the market like you can on a trumpet or your GPA. The market is unique in that most of the variables you are working with are out of your control. If I wanted to learn how to play the trumpet, I can control how hard I want to practice. The market unfortunately does not work that way.

With regards to only making 7.5% a year, most professionals are not trying to beat the market on an absolute basis but rather on a risk adjusted basis. To accept the 7.5% return in equities you have to put up with 15% annual standard deviations. So most fund managers are trying to minimize their sigma while targeting index like returns. It's actually really hard to do and 99% fail at it. There is nothing wrong with having big goals, but if the goals cause you to stretch your risk out, that is where the issue is. Pretend your 11 year old said dad, I want to move to Hollywood and become a star. Nice lofty goal and you never know right? But would you let them move out there with no money, no where to live, no friends, and no plan? Of course not.

Most traders on ET only think in absolute terms, not in risk adjusted terms. And what most of them think of as alpha, is really just piling on leverage. You should have seen the outrage when US regulators limited FX margins to 50 to 1 from 300 to 1. They were burning cars and flags. LOL. The key here is not in making the most amount of money, but rather in making the most amount of money with the least amount of risk taking into account all your opportunity costs.
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Points well taken, Maverick. I go to great lengths to manage risks. It is a nonstop pursuit. Can you elaborate more on risk adjusted returns? Do you think that this strategy is too risky? Is so, what are your suggestions to manage the risks? What type of strategies do you employ? I look forward to your thoughts.
 
Sweet Bobby said:
Points well taken, Maverick. I go to great lengths to manage risks. It is a nonstop pursuit. Can you elaborate more on risk adjusted returns? Do you think that this strategy is too risky? Is so, what are your suggestions to manage the risks? What type of strategies do you employ? I look forward to your thoughts.
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Tastytrade doesn't provide their viewers with strategies to mitigate risk?

Does Tastytrade's refusal to release a P/L for their own trading not bother you? Does Karen Bruton's story not concern you? The two portfolios managed by Tom and Tony that publicly saw significant losses don't concern you?

I bring them up because your answers to my questions were "Tastytrade".
 
Niten Doraku said:
Tastytrade doesn't provide their viewers with strategies to mitigate risk?

Does Tastytrade's refusal to release a P/L for their own trading not bother you? Does Karen Bruton's story not concern you? The two portfolios managed by Tom and Tony that publicly saw significant losses don't concern you?

I bring them up because your answers to my questions were "Tastytrade".
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I have learned much about risk management from Tastytrade. I would be foolish however to limit my learning from only one course. Mostly of my risk management techniques were learned from other traders.

Why would I care about Tastytrade releasing their profit and loss. If you like, follow their trades on Bob.

Sure Karen's story concerns me. I, among others, am fully convinced that Karen failed to take into account any volatility adjustment while stressing her positions. Ouch! I still believe the overall strategy is still viable.

I don't really care about Case and Katie's accounts. They were making all sorts of trades, many of which I would not have made.

This is an experiment to see is Tastytrade methods work in a hybrid environment. Trust me. If they don't, I will be the very first to let you know.
 
Sweet Bobby said:
I have learned much about risk management from Tastytrade. I would be foolish however to limit my learning from only one course. Mostly of my risk management techniques were learned from other traders.

Why would I care about Tastytrade releasing their profit and loss. If you like, follow their trades on Bob.

Sure Karen's story concerns me. I, among others, am fully convinced that Karen failed to take into account any volatility adjustment while stressing her positions. Ouch! I still believe the overall strategy is still viable.

I don't really care about Case and Katie's accounts. They were making all sorts of trades, many of which I would not have made.

This is an experiment to see is Tastytrade methods work in a hybrid environment. Trust me. If they don't, I will be the very first to let you know.
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Appreciate your earnest response. Tastytrade teaches a lot of good stuff for the uninitiated. Hope you continue to grow. Good luck, my friend.
 
One trade today. I sold the SPY
29 JUL 16 221C(3)/190P(1) ratio strangle with 44 DTE for 1.56.

The account is up $695 for the day.

Theta is 220, delta is 417, vega is -846, and gamma is -78.

Happy trading!

Bobby
 
Sweet Bobby said:
One trade today. I sold the SPY
29 JUL 16 221C(3)/190P(1) ratio strangle with 44 DTE for 1.56.

The account is up $695 for the day.

Theta is 220, delta is 417, vega is -846, and gamma is -78.

Happy trading!

Bobby
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Bobby,

Cloud you please with every new trade post
- realized profit/loss YTD
and
- unrealized profit/loss YTD
Or since beginning of your experiment ?
It will be very helpful, IMHO.

Thank you,

Stepan
 
stepan7 said:
Bobby,

Cloud you please with every new trade post
- realized profit/loss YTD
and
- unrealized profit/loss YTD
Or since beginning of your experiment ?
It will be very helpful, IMHO.

Thank you,

Stepan
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Yes I will try to incorporate that.
 
stepan7 said:
Bobby,

Cloud you please with every new trade post
- realized profit/loss YTD
and
- unrealized profit/loss YTD
Or since beginning of your experiment ?
It will be very helpful, IMHO.

Thank you,

Stepan
More...
Are you trying to get a Karen like accounting scheme going?

The NAV is already in the spreadsheet and gets updated daily (1st post) - what do you get out of realized vs. unrealized?
 
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