I would say your concerns are unfounded.
Ok, might maybe apply to such a 1M account, but we will go live with a much smaller account.
My goal is to make at least 30% per month
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Ok, might maybe apply to such a 1M account, but we will go live with a much smaller account.
Whatever happened to your magical delta hedging system? Pretty obvious you're the same guy: https://www.elitetrader.com/et/thre...stem-that-guarantees-at-least-180-p-a.299295/
No, because when your broker, in this case IB is potentially up for a loss of 30k when you have only 10k in your account... then they will not be happy.
Same goes for losses of 300k with a 100k account....
I don't want to rub you the wrong way, but I think you are being a bit arrogant in your beliefs.
You forget that I apply diversification, and use option spreads...
Ok, maybe one or few positions can lose, but not all... I already wrote that I work much with probabilities...
I will take whatever is possible. If I have accumulated enough then I'll be self-clearing... Problem solved... And: then I'll have zero or the least possible marginreq (ie. the minimum exchange marginreq)... The marginreq is very important because it is the basis for the PL calc...
My plan is even having my own investment company that is connected directly to the exchange(s)
without any middleman (aka broker) in between... But these are just some futuristic dreams at the moment...
The rationale and the motiviation is simply this: what a MM can, that I can do too, it's really not rocket science...
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I don't think you know how it works. You can't just be self-clearing... Every trading house has a clearing partner.... Some of the large banks are self clearing... because they are large banks.
Just to have direct access, doesn't mean you don't need a clearing institution. Direct access is simple..
To be a clearing institution, we're talking hundreds of millions to be able to do that.
What option spreads are you doing? I thought you were only selling options?
I'm aware that it is not that easy, but IMO very possible to achieve if one has the necessary funds...
Yes, that 's right... But it's not an obstacle...
Yes, selling calls and puts of the same underlying, in my case OTM for each...
Both sides can't lose... I mean: it can not happen that both sides become losers... Technically impossible... unlike when going long...
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But you won't have that, because you are starting with less than 1 million like you just stated.
Yes, that 's right... But is not an obstacle...
So this will be an obstacle... because you don't have hundreds of millions
Selling calls and puts is a strangle.. not a spread. A spread is risk limiting... you are opening up your risk to both a large drop and large rise. And then a gain of 10k because your call has expired worthless can still be not enough to cover your 200k loss because the stock gapped down through your open put. So indeed... not losing on both positions, just a lot on the total because your gains are limited and losses unlimited.
Well dream on then
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