SPX Credit Spread Trader

[yip1997]

Quote from Maverick74:

Hey Yip, outside of two phone conversations you have had with me regarding my prop firm, how the hell do you know whether or not I make money consistently or not or whether I make good money on average. Answer me that question and maybe I'll take a little more time out of my life to expand on my strategy. Otherwise I'm not going to give you the time of day.

It didn't come from the phone conversation. We never talked about your strategy on the phone.

You mentioned that you made good money trading options when you talked to Don Bright in tape reading thread. I think you also mentioned that your strategy might have many small loss, but give you big winners sometimes. I read some of your comments with Riskarb.

As I have mentioned before, I work like a detective. By asking questions, correct or incorrect comments , someone might disclose a small piece, and I am putting all the pieces I found together.

To be fair, I have learned a lot from your posts with many days and nights of study. I might have misunderstood it. I tried to interpret your strategy to help others. Please correct it if I have misinterpreted it, and let me know if you don't want me to make any comments regarding your strategy.

I have spent a lot of my time to answer your questions. Can you answer my questions in return? Am I right that your strategy works well for haircut leveraging only, but only a small return for reg-T?

I hope you enjoy reading and posting in this thread with the addition of a new guy like me.

 

[Eric99]

Cache,

Option Trader mag just did a piece on directional flys.

 

[yip1997]

Quote from TrendSailor:

But then again, my average yearly portfolio return is only about 28% and compared to yours is probably boring and relatively under performing. But it suits my low stress trading lifestyle and it works for me.
TS

TS,

If you can achieve an annual return of 28%, why do you explore the high risk, high stress IC strategy? Why do you need advisory service? You should start your own hedge fund or advisory service to get a "risk-free" high reward return.

 

[TrendSailor]

Quote from yip1997:

TS,

If you can achieve an annual return of 28%, why do you explore the high risk, high stress IC strategy? Why do you need advisory service? You should start your own hedge fund or advisory service to get a "risk-free" high reward return.

I have a play-pen virtual account of about 5-10% (varies) of my total portfolio worth to experiment with new ideas and to take the higher risk-reward plays. I also do speculation plays in this account.

An advisory service is a good independent "sanity check" and to give new ideas. I have already improved one advisory service's original system and keep it active since I already paid for it and I am using their benchmark to give me a competitive motivation (and ego gratification) of beating.

How can one start their own "hedge fund" or advisory service without being a licensed trader? Isn't that opening oneself up to liability and legal issues?

TS

 

[cohenmichaela]

Quote from IV_Trader:

lol , I wasn't taking about Mav...I was referring to those "successful" naked premium sellers that you mentioned. My point was that some (two) out of 1m are STILL profitable right now...lets ask them again next year

I understand what you're saying. And again, I'm not advocating selling naked premium. I'm not suited for managing that position.

I also agree that no one should trade a position when they don't fully understand the risks. I suppose my only point was that Mav originally said he never sold naked premium and that only bad traders do so. I find this to be a very abrasive and totalitarian remark.

There might be plenty of good reasons for someone to sell naked premium. Another well respected individual on this site sold straddles naked in order to leg in to butterflys.

Yet again, I'm not advocating this for everyone but I don't think this specific person was a bad trader and I don't recall Mav saying so either during that journal thread.

 

[Cache Landing]

Quote from Eric99:

Cache,

Option Trader mag just did a piece on directional flys.

Maybe I'll check it out. Thanks.


And guys, you really shouldn't be giving MAV a hard time. You're asking someone to put in a decade of research and hard work, and then just turn it over to you for free. I'm sure MAV has paid his "tuition" for that education.

He never advertised himself as one who was here to make sure everyone succeeds. He's actually been more than generous considering noone has paid him a dime. You can't compare him to OC, because OC is simply broadcasting his timing of trading extremely simple strategies.

When OC shares a test run that he is doing with a particular strat, everyone here helps him in analyzing it, so he isn't really doing it for free. It is actually more of a barter system. conversely, MAV just gets blasted when he shares any details about his strats. He's been doing it long enough, he doesn't need anyone here to help him analyze the trades. So he really gets nothing by helping anyone out on these boards.

Just keep that in mind.

 

[IV_Trader]

Quote from cohenmichaela:

I understand what you're saying. And again, I'm not advocating selling naked premium. I'm not suited for managing that position.

I also agree that no one should trade a position when they don't fully understand the risks. I suppose my only point was that Mav originally said he never sold naked premium and that only bad traders do so. I find this to be a very abrasive and totalitarian remark.

There might be plenty of good reasons for someone to sell naked premium. Another well respected individual on this site sold straddles naked in order to leg in to butterflys.

Yet again, I'm not advocating this for everyone but I don't think this specific person was a bad trader and I don't recall Mav saying so either during that journal thread.

would you agree with me that one should trade successful/proven strategy on compound bases ? if yes , then naked selling ( OR credit spreads) is always ONE bad trade/biblical event away from losing it all. And its doesn't matter if you shorting only 10% from your portfolio : the fact is that naked selling as a stand alone strategy lost it ALL . As time passes , odds for this bad trade to happen is growing.
Good trading to you

 

[RichardRimes]

Since we have gone completely OT .....again... IV just alerted me to a note by RA which says he has had a traumatic event in his family. Speaking for myself.... in our virtual family I have come to know and care about you all and my thoughts and concern go to him at this time.

Donna

 

[andysmith]

Well, Mav, I gotta say I can't disagree with anything you've said here... thanks for answering.

I am curious, what does it take (account at your firm, account size?) to have you share your 11 years of development (the win-win being that your firm shares the success of the person you share your learnings with)?

Quote from Maverick74:

Cagey? Andy, you need to understand something. I'm not here to teach anybody anything. I respond to posts I find interesting or amusing when I have time to do so. I am not obligated to anyone on this thread. This is Phil's thread, not mine.

As to why I don't go into exact details about what I do, maybe it's because I have spent the better part of the last 11 years working my ass off and learning how to trade. Maybe I'm not interested in laying that 11 years of labor onto the table for someone to pick it up and walk away.

I don't have any special skills or inside info. I did it all through hard work. Everyone on this thread has the exact same opportunity as I did. If you want it bad enough, you'll have a crack at it.

Another reason is, a lot of my strategy was taught to me by a trader at my firm that runs a hedge fund now. He is very private about what he does and does not want me yacking away about it on a public message board. I will respect that.

Andy, when people work hard for things in life, it's not about giving away any edge, it's about giving away a man's life's work. We take pride in what we do. I don't mind answering basic questions. I don't mind helping people when I can. But I'm not going to do the work for you. I don't have any secrets locked away, just years and years of hard work. It's all out there for the taking.

So no, I'm not being cagey. People have asked questions about what I do and I have actually answered them in a pretty straightforward manner. I'm not interested in posting trades, posting performance numbers, bragging about this or that. I'm only here for casual conversation.

I have opened myself up to a few people in person, one of them from this very thread. Sailing has been to my office in Chicago and I have opened up the vault so to speak for him and his partner since we have a working relationship now. I have a vested interest in making sure he is successful. But to anonymous people on this board? I don't owe them a thing.

 

[Bitstream]

Quote from RichardRimes:

Since we have gone completely OT .....again... IV just alerted me to a note by RA which says he has had a traumatic event in his family. Speaking for myself.... in our virtual family I have come to know and care about you all and my thoughts and concern go to him at this time.

Donna

careful with those log ins.