My apologies. I can sense that we are going to get into some communication and comprehension issues here that are not easily resolved via this particular medium so I'll politely wish you continued luck with your trading and success and leave it at that.
Vertical Spreads for Aggressive Growth
- Thread starter Cache Landing
- Start date
My apologies. I can sense that we are going to get into some communication and comprehension issues here that are not easily resolved via this particular medium so I'll politely wish you continued luck with your trading and success and leave it at that.
ok now, we are getting somewhere now! if you have determined that may be the way to go, you must have an idea how to protect yourself? can you give an example of whipsaw risk?
does it all get back to what riskarb does? how can someone replicate his trading when i (or we) do not have his level of understanding? or... can it be done effectively with less knowledge?
you are correct, i apologize also; for i am asking you to give me answers in the style that i would like, instead of your preference. sorry. i will try to understand what you are saying by reading your posts. the reason i pressed was mainly because i wanted to better understand how you trade.
Well, i rather not discuss details on how i am trading exotics as i havent perfected it yet but i will say this. With riskarb's assistance i have taken his approach and adapted it to my style and underlying signals. I dont want to comment on it as i dont have enough data or results to support any statements. And no, it is anything but straightforward and not for everyone despite what he might tell you about his niece
Rally,
I like reading your posts a lot, and I learned a lot from you in the past. I have no doubt that you are a very experienced option trader with outstanding performance. I remember I read it somewhere that you think hedging is inferior. I suspect you didn't hedge your position in your simulation, and that might explain the performance difference between a real practioner (like domestic, Jeffm, or others) and someone who simulated.
I like the arguments and discussions that help me think and learn. Isn't the bottom line of trading the PnL under a very long term?
There is a forum called "Trader PnL". Why don't we start something like "Option Trader Strategies and PnL". I think domestic, Cache, and Coach have done a good job of providing their strategies with their PnL. We all show our monthly return every month and let the readers decide which path they like to follow.
Well with enough motivation (mostly strippers and aged liquor sent to my house) i may be swayed to post more actual trades or PnLs.
Hedging is inferior? Well, i hate to be on the record with something like this, but i think you are taking it out of context. It depends on what you are hedging. Do I hedge no touch barriers or naked gamma exposure - sure. But verticals - no way. I personally dont sell cheap gamma whether naked or bounded but if i did, i wouldnt hedge it and just play it from the probability angle. IMO cheap gamma is impossible to hedge unless 1) the hedge introduces more risk than the original position or 2) you eliminate almost all of the payoff. I think i've touched on that a while back on the SPX trader thread.
So sell expensive gamma and buy cheap gamma. Iron flies and condors?
Still working on the cheap liquor and aged strippers...
Don't take this the wrong way, but this is a patently bad idea. Bringing real dollars into a discussion of trading strategies usually goes very badly. Phil's success with the SPX Spread thread is very rare (and welcome).
If people can't figure out what strategy they want to "follow", they need to keep researching, trading small and learning. A small sampling of a small number of trades should not be a factor in anyone's decision process.
If people can't figure out what strategy they want to "follow", they need to keep researching, trading small and learning. A small sampling of a small number of trades should not be a factor in anyone's decision process.
Quote from rallymode:
Well, i rather not discuss details on how i am trading exotics as i haven't perfected it yet but i will say this. With riskarb's assistance i have taken his approach and adapted it to my style and underlying signals. I dont want to comment on it as i dont have enough data or results to support any statements. And no, it is anything but straightforward and not for everyone despite what he might tell you about his niece
i really do understand, it took me years to post. if i cannot see why a no touch trade or ctm naked may be superior to what i have done for years; then i certainly should not try the trade until i have learned.
what i would like to know is, where do you start to learn?
i agree also with jeffm that seeing p/l will not help a trader unless they understand the concept of how and why. that's why i am asking,"how and why?i really think , rally, you may be on to something. so good luck and knowing that i am interested in that type of trading any time you can drop a clue, i would appreciate it.
maybe i will get the balls to ask risk some questions.........