100k or higher Portfolio

[huskertrader 0]

Is anybody trading the steadyoptions strategy on a 100k or more portfolio? Can you share the experience? I know the max recommended size is 100k and I plan to use it on a 100k portfolio but wanted to check what issues I may potentially run into.  The model uses a 10k portfolio I think. 
 

thanks. 

[zxcv64 771]

Yes, there are people here who trade with a 100K. I've traded the strategies up to $200K in 2020 when the VIX was very high, so all the prices were much higher and the strategies worked really well. However, under normal conditions, like now, it's a little more difficult to trade above $100K. It's very much possible, but you just have to be careful with the type of trades that you take on. If you're a newbie, or new to SO, don't expect to just jump in with $100K. Start with $10K, after a couple of months, increase to $20K, then 40K etc. It took me about a year to scale up to $100K, not cos of the lack of funds, but because of the lack of trading experience in the SO strats. It's like going to the gym - you won't start with massive weights right away, you'd start light then increase the weights every week, till you hit your limit.

Some types of trades allow larger portfolio sizes than others. Eg, straddles and double diagonals are a great for larger portfolios, cos you can have a single DD costing say 14, which means $1,400 in dollar terms and it's possible to do 10 lots of this very easily. Now compare this to a calendar which costs say 0.70, which is $70/contract, and we'd have to buy 200 contracts to get the same dollar allocation. Not only will this be difficult in terms of getting fills, but the commissions will be sizeable. 

Now with Steady Yields available, it's possible for a person to combine the two (SY and SO) and trade with a very sizeable portfolio.

 

 

 

 

 

Edited May 9 by zxcv64

[huskertrader 0]

Thank you zxcv64. Yes, not planning to start with 100K but wanted to make sure it is scalable to that level in the future. 

husker

[falkor 254]

I'm not sure if you're referring specifically to the SteadyOptions service, or to any of the services within the SteadyOptions collection. If the latter, there are some services which are more scalable - these include Collar, Vol, and Yields (as @zxcv64 mentioned). Collar in fact requires 110k and up as it relies on portfolio margin.

[huskertrader 0]

Specifically asking about steadyoptions strategy falkor. 

[Marco 223]

You might not want to jump in with big trades in the more illiquid options. Usually in the Mag7 shares (which many trades are on) I don't have issues putting bigger sizes on. Same for the big ETFs (SPY,QQQ, TLT...) I tend to skip the smaller ones altogether these days but thats more a time restriction on my side rather than liquidity concerns, but you might want to do smaller clips in the more illiquid names. You'll get a feeling for the liquidity once you've tried to get in and out of a few trades. The size of the spread (I look at in in terms of percent of option price (mid)) and open interest are indications for how liquid things are.