Need help finding a way to trade with a 1/100 (risk/reward)

anycolour said:
Could someone please point me to a relatively safe trade with a 1/100 Risk Reward.
For example, I'm willing to risk all of $10k (and lose it all) in order to potentially make 100 times of it which is $1 million.

I'm not looking for a trade, but a way to best make the trade. That is, using which instrument: options, futures, stocks, pairs, forex, options on futures, etc.

I'm guessing options would be the way to do this, but which option strategy is most likely to potentially provide what I'm looking for? E.g., spreads, iron condors, butterflys, etc. I really don't know much about options, except straight calls and puts.

Some parameters on the trade I want to make, which might help you in answering my question:
I plan to make a short trade, in a fast downward movement environment with increasing volatility.
I will be looking to stay in the trade for about 250 days (I will exit the trade after ~250 days).

Well, actually, while you're at it, if you could tell me what exactly would potentially have the best chance to provide a 1/100 risk/reward in the scenario outlined above: /ES, TVIX, /GC, etc.

Thank you!
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Dude, that's easy.

Pick anything you want, anything. Even the crappy - no volatility EUR/USD, and place a stop at exactly $10K (which is the amount you are willing to lose), and a take profit @ $1 million (which is the amount you are willing to win).

That's it, buddy boy, go for it! Then relax, what your local politics, bullfights, total combat, hollywood, local clown shows or any local entertainment you have access to until the stop loss or take profit is reached! Then play again! Simple, isn't it?
 
anycolour said:
Could someone please point me to a relatively safe trade with a 1/100 Risk Reward.
For example, I'm willing to risk all of $10k (and lose it all) in order to potentially make 100 times of it which is $1 million.

I'm not looking for a trade, but a way to best make the trade. That is, using which instrument: options, futures, stocks, pairs, forex, options on futures, etc.

I'm guessing options would be the way to do this, but which option strategy is most likely to potentially provide what I'm looking for? E.g., spreads, iron condors, butterflys, etc. I really don't know much about options, except straight calls and puts.

Some parameters on the trade I want to make, which might help you in answering my question:
I plan to make a short trade, in a fast downward movement environment with increasing volatility.
I will be looking to stay in the trade for about 250 days (I will exit the trade after ~250 days).

Well, actually, while you're at it, if you could tell me what exactly would potentially have the best chance to provide a 1/100 risk/reward in the scenario outlined above: /ES, TVIX, /GC, etc.

Thank you!
More...

Most not clever enough to be open minded, there are ways to be had, and once had not one dumb enough to reveal. Plus, you have to well back tested, defined, automation so as not make errors. Your examples are what your brain says is profitable but few trades that your eyes reveal to be true are true. Trading is overall this way if you been doing long enough or have much experience, scalping is high percentage profitable trading with very small profits, monthly trading is very low percentage profitable trading with huge profits by doing more of buy and hold. Learn to control the risk well enough where you have positive expantentcy on each trade so you show 1/1000, so many breakeven responses till last one hits a mother of a trend, can't put a time of when it starts or ends, just wait as it will happen.
 
I cannot think of a TA-based set-up which would deliver a positive expectation of a 1:100 r:r from a single trade. But I do know that you can achieve this if you pyramid your original trade in a strong trend.

Calculations I did a while back were based on adding a similar-sized trade when the original trade reaches profit equivalent to initial risk, and then again each time the most recent trade makes an equivalent gain. I believe that the original trade plus 15 pyramids would give a r:r of 1:104.
 
Pyramid is simply averaging up? If so, I've done it with stocks, but never with options.

Could you please give me a brief example of the best way to pyramid with options? Thank you!
 
anycolour said:
Pyramid is simply averaging up? If so, I've done it with stocks, but never with options.

Could you please give me a brief example of the best way to pyramid with options? Thank you!
More...


I don't know enough about options to advise on pyramiding them, sorry.
 
anycolour said:
@tomorton What do you pyramid with? (stocks/futures/etfs/etc.) Could you please tell me how you do it? Thanks
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There's a range of choices available for pyramiding an existing position.

The method I was referring to is conventional. Suppose your original long position is opened and goes into profit. The position has a stop-loss below entry which would incur a loss of 2% of your account capital if hit. when the original position goes to an equivalent profit level, +2%, you open a pyramid position of the same size and with a stop-loss the same distance below its entry, so that the maximum loss on the second position is also -2%. Meanwhile, you move the stop-loss order on the first position to its entry price, so there is no possibility of any loss on the original position.

You now have a combined long exposure double the original trade but with only the same risk, 2%. In theory, you continue the process every time price moves up to show another 2% profit, opening a new trade with a 2% risk, and moving all existing trades' stop-losses up by the same distance.
 
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