My goal is to make at least 30% per month

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marsman said:
Sure, I lost about 10k with long options, and then made a pause of more than a year to study the options field throughly.
Now I'm coming back, this time specialised on short trading...
I can also claim that I'm a quant, although I learned everything myself without any mentor or attending any courses, but of course with the help of some literature and the internet.
I'm good in maths/statistics/probability and of course programming (C++).
I'm a Linux guy, working much in the console as opposed to GUI... Ie. I'm more a low-level guy...
Of course in the past I've also worked many years under Window environment. But the last Windows OS I have installed here is XP (installed inside VirtualBox in Linux).
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To hard to go into it in detail on a post, but automated trading with options is much different than equities. You should learn about the pro-customer status that comes with entering over 390/orders per day. For short options, you will need an PM account which requires more capital and experience. You should learn how margin works with PM and how each clearing broker has their own restrictions on naked options.

Good luck to you.
 
marsman said:
Hmm. I can't confirm that. The way I now trade is the most comfortable I ever had in the past.
Because: I'm no more doing any daytrading, I just concentrate myself on the expiration Friday.
And: short options are "Like Ice in the Sunshine"... :)
Ie. time is your friend: you profit even if the underlying doesn't make any move...
Say you are in negatives, then just wait some hours and you will see a better result.
Of course it's not that simple, I'm also doing some scale-in/out...
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Wait until you are down 30-40%, then it wont be as comfortable anymore i am afraid.
Don't misunderstand me, i do hope you can reach your targets month after month and start with live account/journal soon.
I just don't think its that easy unless you have millions left in your bank account and don't need to worry that much about losing 300-400K.
 
1245 said:
To hard to go into it in detail on a post, but automated trading with options is much different than equities. You should learn about the pro-customer status that comes with entering over 390/orders per day. For short options, you will need an PM account which requires more capital and experience. You should learn how margin works with PM and how each clearing broker has their own restrictions on naked options.

Good luck to you.
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Yes, knowing the margin requirement is very important.
I've currently only RegT margin, it's sufficient for my needs. Later of course I'll switch to PM to get even better results.

I have not heard anything about a 390 orders/day limit yet. Thx for the info. I'll need to research such important things.

Update: ok, here's it ( http://ibkb.interactivebrokers.com/node/1242 ) :
I'm way below it: 39 daily trades... Ie. 10 times lower than the limit...
And: here's how to overcome that limit: just open multiple accounts at different brokers... :)
Or use multiple people (kind of friends, partners etc.)... :-)

390_limit.png
 
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marsman said:
Hey mods, what are you doing? What happened to the many vanished postings of the people?
There were postings of rmorse and of other posters. They are all gone!
rmorse had also announced to PM me, but there is nothing from him in my mailbox.
Is this a deliberate/intentional action (aka censoring / filtering / deleting), or is there a bug in the system?
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He might have deleted this post himself.
 
wrbtrader said:
Why 1 million dollars paper account ?

Lets pretend you really only have 30k in your real money account. Wouldn't it be "realistic" to paper trade only with 30k ?
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I have big ambitions, I just wanted to prove that my method is scalable even to such a 1M acct.
Another reason is: the acct has this size, and the PnL reports are done based on that initial value...
 
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marsman said:
My goal is to make at least 30% profit per month.
I started this adventure 2016-07-05 with an IB Paper Account that is funded with $1 million USD.
It uses realtime data, and is very realistic. The orders sent thru that account go somehow directly to the orderbook (!).
I don't know how the IB folks have done it, but it's very realistic; kudos to the IB team!

I'm trading primarily options, mostly short spreads. And timeframe is just 1 to 3 weeks.

In the following postings I'll post all my trades so far.

I have still a week to go for finishing the 1st month.
I've not yet achieved my set monthly goal, but I'm hopefully that before the month ends I'll be over the 30%.

Besides TWS and API, I'm also using some additional programs of mine for analysis etc.

I'm using only limit orders.

Wish me luck! :)
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For someone who ask so many basic questions about the market that even a newbie would be able to look up on google in 5 minutes (Does ES trade after hours??), now you want to make 30% a month....

This is the anchor that weighs down this site....
 
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