What a stupid study

taowave said:
The trades appear to be short puts.
What does allocating 8500 in capital actually mean??

Underlying notional?? Margin requirement??
it can't be a stop loss:)

But then you are risking ATR,as in Average True Range?? What does that mean without a stop??

it appears your percent returns are based off of capital usage,not Total Capital.Am i correct?
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$6500 USD is the notional value of getting assigned..sry I had CAD. $2800 is what is statistically at risk based on the atr for the same time period. I do not get margin on CLSK. Yes I look mostly at return on risk rather than return on capital...capital allotted is just the price of admission...capital at risk is what I want to account for. :)
 
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wxytrader said:
Here are the results of my strategy after 48 days...obviously I would be scaling up at some point.

View attachment 337253

I just wanted to mention that my spreadsheet outputs these results automatically, I don't have to update them manually. :)

$8500 in capital

  • ROR is 68% monthly, compounding to over 500% annually...250% if atr adjusted annually.
  • Return on capital is 14% monthly or 168% annually.

It's like compounding dividends. :)
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Wtf 8.5k???
 
$6500 is the max notional you will take down per name..
That means on a 65 dollar stock you will sell 1 put,on a 32.5 dollar stock you will sell 2 puts.

  • ROR is 68% monthly, compounding to over 500% annually...250% if atr adjusted annually.
    [*]Return on capital is 14% monthly or 168% annually
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68 percent per month does not compound to 500%...How did you compute that?

Return on isnt using componding,just the arithmetic sum?

Are you basing the monthly returns on the premium sold,or the margin posted for a short put?

Im guessing if you sell a put at 1 dollar,it goes it worthless,you make 100%.
Its not return on Margin?

WTF is ATR adjusted?






wxytrader said:
$6500 USD is the notional value of getting assigned..sry I had CAD. $2800 is what is statistically at risk based on the atr for the same time period. I do not get margin on CLSK. Yes I look mostly at return on risk rather than return on capital...capital allotted is just the price of admission...capital at risk is what I want to account for. :)
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taowave said:
What's absolutely useless is your opinion:)

You posted 1 trade you did,selling ONE put on an 18 dollar stock. Stock cratered,put tripled in your face,you doubled down,and got lucky.

The only reason you lived to tell is you trade 1 lots. I'll give you credit on that. You aren't a "trader", ,i.e exert risk control,and compensate by trading small enough so you can turn investor when wrong.

And again, maybe what you do works for you,but your approach is no doubt flawed.

You don't make money when you are right.
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It's early Easter Sunday morning sir. :D:D:D
 
You cant go easy on a guy who drives Vintage Lambos.He loves the attention..Do you really think he actually beleives the stuff he comes up with?? Its pure entertainment for my man

And stay posted..My boy and I are crunching the numbers :)


ironchef said:
It's early Easter Sunday morning sir. :D:D:D
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taowave said:
$6500 is the max notional you will take down per name..
That means on a 65 dollar stock you will sell 1 put,on a 32.5 dollar stock you will sell 2 puts.


68 percent per month does not compound to 500%...How did you compute that?

Return on isnt using componding,just the arithmetic sum?

Are you basing the monthly returns on the premium sold,or the margin posted for a short put?

Im guessing if you sell a put at 1 dollar,it goes it worthless,you make 100%.
Its not return on Margin?

WTF is ATR adjusted?
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I allott only a certain percentage to single stocks...basically what my premium can surpass x 2 in a year in case of bk. So in CLSK's case my math tells me I can collect about 15k per year on 3 contracts, and after 48 days it looks to be on track, thus why I keep my allotted funds to about 1/2 that. I will scale up with increasing the amount of tickers and probably increase to 5 contracts each.

On indexes like IWM I have to allot more cash obviously, so its not really as capital efficient, however it delivers about the same premium with less risk as it is every other day versus weekly. So its a balancing act.

ATR adjusted is what is the largest drop the stock has made in a set time frame or 1 SD whichever is larger.

So for return on investment I am taking the 15k I am collecting in premium / 8.5k (6.5k USD) I had held up in the investment which = about a 172% annual return.
 
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rb7 said:
The Nikkei took 35 years to come back from the high of 1989.
Sure if you're immortal, that'll do it....
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35 yrs yes but it did come back. See here in the US no one has patience so 3 yrs would feel like 35 yrs for most!!
 
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