Welcome to SteadyYields

[Kim 7,865]

We are pleased to expand our services offerings with a new strategy called SteadyYields.

Here are the service parameters:

• Tailored for medium term active traders
• Model portfolio size - $10,000
• Underlying -TLT, TMF
• Average holding period - 2-4 weeks
• Number of trades per month - 3-5 plus adjustments
• Profit target - 30-40%+ annually

 

There is a long-term correlation between oil prices and constant maturity yields for the 10-year Treasury. SteadyYields is a trading strategy that takes advantage of this correlation. Details can be found on the members forums discussions.

We recommend trading with a low or no commission broker (like Tradier or FirstTrade). TMF & TLT are extremely liquid, scaling up will not be a problem.


June 30, 2024 update

Scott Batchelar who was the original strategy manager of SteadyYields and introduced the strategy to our members in March 2024 has left our company to pursue other opportunities. Mr. Batchelar is no longer managing any of our services. He is not involved in any of our activities in any capacity. We are not associated in any way with any of Mr. Batchelar's businesses and cannot comment, advise or endorse any of them. 

Mr. Batchelar managed the SteadyYields strategy in a way that was not suitable to our members and not in line with our trading philosophy. The new managers will follow the concept of the service in a manner we believe to be more appropriate for our members and also respond to concerns in a manner consistent with our site. The trading parameters have been significantly modified to reduce risk (including position sizing, hedging, lower profit targets and lower potential drawdowns etc.)

For the record, the original strategy description has been written by Scott Batchelar.

[zxcv64 770]

I don't want to beat a dead horse, but with regards to comms, I was also a little concerned before taking this trade, but I realise that I had absolutely no reason to be.

I wasn't able to get into the second leg of the trade and missed one of the adjustments, but in total I traded 80 contracts and paid around $37 in comms whilst earning around $1,040 in profit. My capital at risk was around $2,500, so the comms made up a mere 1.5% of the whole trade. I couldn't ask for anything more. (I'm with IBKR.) Due to low comms, and good liquidity, I see this strategy is very scalable. Not sure what the official guidelines will be for the upper limit, but once I get comfortable with it, I'll be scaling it up significantly.

 

The next bit is not a recommendation, but just an FYI.....

 

I wanted to see if I could replicate the trade using the the 10 year future, /ZN, cos TMF and /ZN follow pretty closely as the below chart shows (the bars are /ZN and the line is TMF). So, I sold a CCS on /ZN - to my surprise the comms were much higher on this than on TMF options. Plus, there are complications in trading futures options (need to close before First Notice Day, delivery, etc), so I will not be doing this going forward.

[RichardW 0]

Is this backtested ? It seems pretty straight foreward and thus not difficult to backtest. 

[SBatch 3,123]

5 hours ago, RichardW said:

Is this backtested ? It seems pretty straight foreward and thus not difficult to backtest. 

Yes, here is one done by a member:

At the end, here are the results, backtests of the strategy over the last 20 years :

Mean RMSE = 3.36%. 

 

[Drizzle_268 1]

With such a year return, what is the max drawdown in this strategy? 

[SBatch 3,123]

1 hour ago, Drizzle_268 said:

With such a year return, what is the max drawdown in this strategy? 

I keep the max estimated drawdown to around 20%.

[trhanson 483]

To add to that, I am trading an incredibly conservative version of steady yields in my Roth at Schwab.  You have to have a margin enabled account there, but of course, actual margin is not available in an IRA.  That means that you must have the cash on hand to cover the actual risk of a credit spread.  Schwab allows you to trade Iron Condors in an IRA at absolute risk level, IE, the cost to open an IC is the wingspan minus the total credit received on both legs since you can't have a loser on both ends simultaneously.  

 

I also have a leveraged anchor going on in there (the majority of that portfolio is a leveraged anchor), and that strategy requires you to trade a diagonal, which is allowed in an IRA at Schwab, but again, you need to have the cash on hand to cover the absolute risk of the trade.  

[chrisag 0]

What happened to Steady Yields? The performance page is showing a -103% for June

[Kim 7,865]

On 7/19/2024 at 7:29 PM, chrisag said:

What happened to Steady Yields? The performance page is showing a -103% for June

Please refer to the first post of this topic. The previous manager Scott Batchelar managed the SteadyYields strategy in a way that was not suitable to our members and not in line with our trading philosophy. We have new managers now and have a completely different implementation. 

[MRB 27]

6 hours ago, chrisag said:

What happened to Steady Yields? The performance page is showing a -103% for June

Many members, myself included, lost over 200% in the month of June.  Scott was awesome at blowing up accounts.   A true master. 

[IncomeTrader1 6]

Apparently after blowing up the account in June on SO website, Mr. Batchelar blew up the account again in July trading the strategy the same way he did in June, this time on his own website. Now those trades are removed from his website forum so new members cannot see them.

 

Edited August 10 by IncomeTrader1

[MRB 27]

1 hour ago, IncomeTrader1 said:

Apparently Mr. Batchelar blew up the account again in July, this time on his own website. Now those trades are removed from the forum so new members cannot see them.

I like how above in the posts he says he targets a max drawdown of 20%.  He forgot to add the zero to make it 200% as that is the reality of his trading results. 

[LearPilot 35]

8 hours ago, IncomeTrader1 said:

Apparently Mr. Batchelar blew up the account again in July trading the strategy the same way he did in June, this time on his own website. Now those trades are removed from his website forum so new members cannot see them.

 

Yes, I can confirm this. Something is seriously wrong with him.

[Kim 7,865]

 

Things my lawyer wanted me to post:

 

As many members know, Scott Batchelar is a former contributor to Steady Options, who is no longer with our company. Since his departure, there has been a series of extremely hostile emails, threats, and discussion. In light of his threats, Steady Options elected to remove a lot of his content from this website.  Steady Options made this decision, not because it has done anything wrong, but simply to avoid the fight Mr. Batchelar was attempting to start.

 

That said, my lawyers have advised me that I need to make a couple of public disclaimers to protect this business:

1. Mr. Batchelar has accused Steady Options of plagiarizing his work.  This is not true in the slightest.  Mr. Batchelear was a paid contributor to the site who produced works for hire.  He also agreed to the terms of service for the website, which grants a perpetual license to publish the work on the website.  
    
2. Mr. Batchelar is no longer associated with Steady Options in any form whatsoever.  In the event any member/subscriber receives communication from him, such communication was not sent at the direction of Steady Options, and Steady Options has no control over such communications.  
    
3. Neither Steady Options or any contributor associated with Steady Options is giving investment advice or may give investment advice.   Steady Options is considered an investment newsletter (See Lowe v. SEC) and operates under those guidelines.  
    
4. As far as Steady Options and its attorneys have been informed, Steady Options is not under the investigation from the Massachusetts Securities Division. Instead, as should be obvious from Mr. Batchelar's defamatory posts he has been making on review sites, he has filed for registration with the Massachusetts Securities Division.  Any time anyone applies for a securities license, they must disclose content they have written.  It is perfectly routine for regulators to inquire into past relationships, such as the one Mr. Batchelear had with Steady Options.

 

Mr. Batchelear has provided Steady Options (and included in many of his posts), information about the Massachusetts Securities division. If you have any questions about Mr. Batchelear's activities, his attempts to register SteadyVol as a fund, concerns regarding his registration, or communications you have had with him, you may contact:

 

Hadassa Mixalixen, Esq.

Registration, Inspections, Compliance and Examinations (RICE)

Massachusetts Securities Division

One Ashburton Place, Room 1701

Boston, Massachusetts 02108-1552

P: (617) 727-3548

F: (617) 248-1077

E: securities@sec.state.ma.us 

 

While Steady Options is being falsely accused of plagiarism and other bad acts, the only remedy available would be a lawsuit seeking a declaratory judgment, which, given the international nature of such a dispute, would cost well north of six figures. Steady Options believes it is in the websites best business interest to simply placate Mr. Batchelar by removing most of his contributions to the site, while making a disclaimer that such removal is not an admission of wrongdoing, as it had an absolute right to publish such items (in fact, Mr. Batchelar posted such items himself).

 

Steady Options greatly values its members and subscribers, without them we would not exist.  We sincerely regret any difficulties anyone may or may not have had with Mr. Batchelar and have put additional protocols in place to hopefully avoid such situations in the future.  If any member has any issues relating to this post, SteadyVol, or Mr. Batchelar, please just email us and we'll address it individually.