Purely Mechanical Option Trading

Quote from neke:

Given your historical results, don't you think this is VERY conservative, given you are in only one position (mostly) at a time, and you have a 25% stop loss. Of course past performance is no guarantee of future results, but given such a record, I would be upping my outlay to say 30% per trade. Yes, a drawdown may happen, but in the end, confident the edge remains, the money should grow at a more accelerated pace.
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Neke and Div Arb,

I agree with you completely.
What holds me back is some very bad mental scars when I started out option trading 10 years ago.
I knew nothing in the beginning and totally nuked 2 or 3 accounts and had to refund them.
I had no concept of money management and would place 50% of my account into a single position. Several times while holding options on stocks overnight, companies released horrible news after the bell and I woke up to almost zero value in the options.
This has left me with deep mental scars and an overly convervative trade management method.
Maybe someday I can overcome this mental conservatism if a decent rate of success continues for a long enough period of time.
 
I might have missed something but why don't you trade with futures given the accuracy of your system?

If the opportunities can only be traded in the options market, does that mean that the options market are indeed priced wrongly from time to time? It's counter-intuitive that given such huge slippage and bid/ask that one still can exploit profitably.
 
Hey guys My name is Christian and I am from Singapore. I was intrested in Eurex Trading and Forex trading as well. I am very new to trading and was wondering if someone can give me tips and pointers. I wasn't sure which way to go because I was also thinking about trading the NYSE. Maybe someone can help tell me which is the better way to go Eurex, Forex, NYSE. This is because I am not in the U.S. and I am not sure how trading the NYSE and Forex works out for people abroad. Is there anybody here who is not in the US and trades the NYSE or the Forex markets i would really appreciate if you could tell me your experience
 
Quote from jeffalvinson:



Maybe someday I can overcome this mental conservatism if a decent rate of success continues for a long enough period of time.
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You speak as if conservatism is a bad thing. I've traded options for 10 years and my worse month ever was -3%. I attribute that to being very conservative. Keep being conservative, it'll lead to longevity.
 
Quote from lodidodi69:

Hey guys My name is Christian and I am from Singapore. I was intrested in Eurex Trading and Forex trading as well. I am very new to trading and was wondering if someone can give me tips and pointers. I wasn't sure which way to go because I was also thinking about trading the NYSE. Maybe someone can help tell me which is the better way to go Eurex, Forex, NYSE. This is because I am not in the U.S. and I am not sure how trading the NYSE and Forex works out for people abroad. Is there anybody here who is not in the US and trades the NYSE or the Forex markets i would really appreciate if you could tell me your experience
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look at the prop threads. Also, you are in singapore, join a local trading group, look at prop, demo trade, etc. This is really the wrong thread for this dude.
 
Quote from tropicaltrader:

You speak as if conservatism is a bad thing. I've traded options for 10 years and my worse month ever was -3%. I attribute that to being very conservative. Keep being conservative, it'll lead to longevity.
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Amen to that. I advocate trading like a little old lady, but for size.
 
Here is a one page explanation of DeMarks td%f which creates a buy zone, some of you following along may find this of interest. Good trading. :)
 

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