Long-scalping equity options against time decay and market drift

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Overnight said:
K, how about this. Since you started this combo meal at beginning of the year, has the amount of cash in your account gone up or down?

So for the year, which is ending in a month, what is your realized PnL vs unrealized PnL?
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At any time, the PNL can be decomposed into components:

PNL = Realized + Unrealized - commissions

In turn, in the Realized, one could separate the positive "trades" from the "negative" ones (actually the word "trades" is used naively here: we should say more precisely order matches):

Let's write realized = P + N

So we could say:

PNL = P + N + Unrealized - commissions

Now while the PNL is a given number, all these components, may change depending on the lot-matching algorithm which is being used.

take for instance this layer:

upload_2022-12-3_1-18-23.png


which has a PNL of 1629.50. Now the PNL decomposition is quite arbitrary and depends on the lot-matching method.

Just to make an example using 4 different criteria:

FIFO
16269.50 = (17707.50 + -870.00 + 0.00) - 568.00

min realised loss (sell-buy prices of matches have opposite ordering)
16269.50 = (37132.50 + -20295.00 + 0.00) - 568.00

max realized loss (sell-buy prices of matches have the same ordering)
16269.50 = (37142.50 + -20305.00 + 0.00) - 568.00

LIFO
16269.50 = (17707.50 + -870.00 + 0.00) - 568.00

"Realized" and "Unrealized" are concepts used for accounting, but they are arbitrary because they depend on how the order matching is carried out.

All we care really about here is the PNL.

Hope I have answered the question. If not feel free to ask more. :)
 
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fullautotrading said:
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"Realized" and "Unrealized" are concepts used for accounting, but they are arbitrary because they depend on how the order matching is carried out.

All we care really about here is the PNL.

Hope I have answered the question. If not feel free to ask more. :)
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It did not answer the question. Let me break it out into simpler terms.

How much cash did you start this journey with, in your account, BEFORE you entered the positions, and how much cash do you have in the account NOW, as of this date?
 
Overnight said:
It did not answer the question. Let me break it out into simpler terms.

How much cash did you start this journey with, in your account, BEFORE you entered the positions, and how much cash do you have in the account NOW, as of this date?
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The "paper trading" account was initially reset with 2M.

And the report from IB gives now this:

upload_2022-12-3_1-30-10.png


it says, as you can see, 2.383.175,50.

But you do not have to trust this number because IB does not incorporate the closing expenses (commissions and spread).

You need to trust my PNL, which is precise to the penny and it is computed at any time totally independently from IB including those closing expenses, for any layer (it is always less than IB and is equal only when all positions are 0).

In fact, it might even happen that one believes to be closing something in profit, but ends up with a loss :)

This is the "real" one (360,288.97):

upload_2022-12-3_1-35-30.png
 
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fullautotrading said:
The "paper trading" account was initially reset with 2M...
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I don't know if you are responding to me or someone who has me on block, the question is so basic and easy, you not answering it leads me to not believe what you say about anything any longer. And that is sad, because I have lost all patience with people who refuse to answer the simplest questions. Hell, come up with an excuse as to why you don't understand the question and I will believe it! Like you citing language barriers and shit.

Here's the question, one more time, in bold letters so you can see it...

It is very simple. This question can be answered by a 12-YO. It is basic math...

"...How much cash did you start this journey with, in your account, BEFORE you entered the positions, and how much cash do you have in the account NOW, as of this date?..."
 
Overnight said:
I don't know if you are responding to me or someone who has me on block, the question is so basic and easy, you not answering it leads me to not believe what you say about anything any longer. And that is sad, because I have lost all patience with people who refuse to answer the simplest questions. Hell, come up with an excuse as to why you don't understand the question and I will believe it! Like you citing language barriers and shit.

Here's the question, one more time, in bold letters so you can see it...

It is very simple. This question can be answered by a 12-YO. It is basic math...

"...How much cash did you start this journey with, in your account, BEFORE you entered the positions, and how much cash do you have in the account NOW, as of this date?..."
More...

Well, I told you, and I have been saying it in almost all PNL summary.

We started with a 2 Million account. And the current PNL is what you see in the chart posted in the reply above. The "total" is the PNL we made of 360K + the initial 2M, obviously.

Sorry, but is this not what you are asking?

If you mean the available funds (from IB) they are: 894,383.46 (62.47%).

The IB NetLiquidation is: 2,383,173.45. It's also written on top of the chart.

(In the previous post I explained why IB liquidation is always greater than what I compute).
 
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fullautotrading said:
Well, I told you, and I have been saying it in almost all PNL summary.

We started with a 2 Million account. And the current PNL is what you see in the chart posted in the reply above. The "total" is the PNL we made of 360K + the initial 2M, obviously.

Sorry, but is this not what you are asking?
More...

"...How much cash did you start this journey with, in your account, BEFORE you entered the positions, and how much cash do you have in the account NOW, as of this date?..."

REALIZED PnL RIGHT NOW vs UNREALIZED PnL! Do they not teach those terms in FOP school?

I'm going to give you some music to meditate on how to answer this simple question...


If you cannot answer this simple question, you are 100% fake. I will be done with you.
 
Overnight said:
"...How much cash did you start this journey with, in your account, BEFORE you entered the positions, and how much cash do you have in the account NOW, as of this date?..."

REALIZED PnL RIGHT NOW vs UNREALIZED PnL! Do they not teach those terms in FOP school?

I'm going to give you some music to meditate on how to answer this simple question...


If you cannot answer this simple question, you are 100% fake. I will be done with you.
More...

I gave you the PNL. Also, I made a post to explain to you that there is no such thing as unique figures for the components of the PNL (Realized and Unrealized).

Because they depend on the lot-matching method that is used to match the orders.
In other words, they are arbitrary numbers.

You can read Realized and Unrealized figures on top of the PNL window. Eg:

Unrealized = 12,963.30

out of PNL = 360288.97. (Of course, these figures depend on my lot-matching method and on the current orders.)

[This was, for instance, the whole point of the Statist thread, where one wanted to use specific-lot accounting method, in order to make "appear" all gains in Panama :)]

For more on lot-matching methods, you can see here.
 
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