Vanzandt vs. Destriero Trading Competition

[destriero]

You're too clever by half. If the rules allow loading up on short gamma & vega, then the "winner," assuming no LJM style blowups during the competition, is whoever sells the most premium.

Say you’re long a $3 fly that is short gamma and vega. 20-lot is $6K. Max loss?

 

[destriero]

You're too clever by half. If the rules allow loading up on short gamma & vega, then the "winner," assuming no LJM style blowups during the competition, is whoever sells the most premium.

LJM shorted naked puts. You do realize that nobody is shorting naked puts in this thread, right?

 

[destriero]

Bigger question is why have a trading competition at all.....just wastes a lot of time. The loser (VZ) just sneaks away and makes up BS excuses and the winner is told he cannot trade that way for real.

Also let us not forget the fact that anyone could have a good 60 days trading, if we put 100 people together, someone would have to win guaranteed even if they were blindly putting on trades.

I knew the guy would flake, but had to cajole him into proving he's negative edge. I had no clue that he was this impaired, however.

 

[El OchoCinco]

 

[destriero]

You're too clever by half. If the rules allow loading up on short gamma & vega, then the "winner," assuming no LJM style blowups during the competition, is whoever sells the most premium.

It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man's fears and the summit of his knowledge. This is the dimension of imagination. It is an area which we call the TrueType Zone.

Every position posted to this account has been a debit spread. I took a few of them as a synthetic, but there is zero initial margin in any of the trades. The cash requirement is the debit of the spread. Even the ICs are simply synthetic call(put) condors.

Further, the debit paid simply means that the long premium exceeds the short.

How can you have been on the fringes of this industry for over twenty years and not know anything?

 

[Saltynuts]

So destriero, just seeing this thread, did you do battle with VZ and win? Even if he did not engage thanks for trying!

 

[srinir]

You're too clever by half. If the rules allow loading up on short gamma & vega, then the "winner," assuming no LJM style blowups during the competition, is whoever sells the most premium.

Comparing buying fly's to LJM is little bit disingenious. LJM sold lot of wings with lot more notional exposure (based on their tiny returns compared to XIV) and there is 20% drawdown limit. LJM type of trading can have lot more drawdown with slight increase of vol. Heck, even XIV had plenty of 20% drawdown along the way.

 

[truetype]

How can you have been on the fringes of this industry for over twenty years and not know anything?

indeed, I would have to climb many rungs up the ladder just to touch your toes. But my broad point is correct, for purposes of competition it would be better to focus on straightforward directional trades in equities, futures, fx. It's a purer test of ability to predict markets. Although the idea of "competing" with a papertrader is ridiculous anyway.

 

[destriero]

indeed, I would have to climb many rungs up the ladder just to touch your toes. But my broad point is correct, for purposes of competition it would be better to focus on straightforward directional trades in equities, futures, fx. It's a purer test of ability to predict markets. Although the idea of "competing" with a papertrader is ridiculous anyway.

I am predicting vol and price.

The BA trade (which I traded, BTW) went from 23 to 29. Are you suggesting that the mid didn’t rally 6 points? Say that I had taken the other side and gone long gamma and vega... I would have lost nearly 30% in long gamma.

There is no blowing up. A debit risk means debit risk. The tautology is lost on you.

 

[destriero]

Think about it this way. You’re short a 90/100P 110/120C condor from 5.00. Who is risking more; you or the buyer?