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In the "Combo Selection" I cant see any greeks. At least the delta would be important imo, no?
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Hey there! Im also just starting out with TWS and I can tell you, its confusing for me too! I want to work my way through it anyway. I think if you stick around with it long enough and keep on learning you will finally figure it out. There are many pro traders that use TWS for years and they like it. Maybe I can answers some of your questions. 1. If you are about to submit an order, you can check a box "performance profile" (or something similar, my tws is in german). Then there should open a risk graph, that shwos your profit and lost zones, profability of winning, provision and some other things. What I find very useful is the "Risk navigator". You can compare single positions or your whole portfolio to a benchmark. You can make an "What if portfolio" play through some changes in the positions and check the risk and various other things. Risk Navigator is a must imo.IB has a 10 Video playlist on youtube about the risk navigator. Its great. 2. Dont know what bracket orders are. 3. Whats the problem with closing a trade with all the legs at once. When you dont submit the trade through a limit order, rather with a market order, the trade should be closed pretty immediately. But keep in mind to avtivate the "Strategy Builder" when starting a trade. Could it be that you bought all the single legs seperately? 4.I had exactly the same problem which got me very confused. When you sell a Iron Condor for example, you buy it in the TWS. It took me a while to figure that out! Good luck! And as longer you stick with it, the better it gets imo.
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Hi @cwelsh, just joined this forum and looking at the existing trades. On your T collar, your call is at 15 and put at 13. How do you look at that potential risk? Based on the numbers you provided, you have $1.83 per share risk with div at only about 0.28 x 4 if everything goes great. If T is under $14, the losses + margin rates become significant. Not disputing the trade at all, simply attempting to understand how to think about that delta. Thank you!
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Steady PutWrite discontinued. Here are the monthly returns of the strategy:
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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%.
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Is this backtested ? It seems pretty straight foreward and thus not difficult to backtest.
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Tomczek joined the community
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Thank you for the tips. I thought about utilizing a cloud computer, but I'm hesitant to rely on yet another service or subscription to maintain my setup. It seems like I switched to Traider to save on commissions, but now I find myself having to pay for other services to make up for the features it lacks.
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No, I just rent a server which I access via Remote Desktop. There's a lot of vendors out there, like Hetzner, OVHcloud, Contabo,... I use thinkorswim for my live data. Tradier does not provide live quotes for index options like VIX or SPX, nor did I find a way to pay for those to get them. This messes up the option pricing model, because you DO get an underlying quote, it's just that it's 15 minutes delayed. Not a problem with ETFs like TLT or TMF. You can switch the live feed to Tradier only when transmitting the order, then switch back to thinkorswim for monitoring.
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Yes, this thread is more appropriate I vented my frustration in the wrong thread when TradeHawk came up. Thanks for replying. Maybe I need to revisit my experience with ONE and Parallels. As far as I remember, they were already compatible, allowing the application to launch and run on Parallels. However, I encountered numerous crashes, especially when using Tradier as the API for live data. Based on my observations: - Lots of crashes using the ONE Beta - Less crashes using ONE stable - Crashes were way more frequent when using Tradier API for live data. Another issue I encountered was that whenever ONE crashed, it didn't auto-save my progress. If I had added two or three different positions, they would all be deleted upon crashing, which was incredibly frustrating. Do you run ONE in Parallels? Are you experiencing crashes?
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The RV chart used the ATM stradfle each day, whose strike may change from day to day. It’s a measure of how well the IV rise is counteracting negative theta. This is useful for determine downside risk if the stock price doesn’t move. However, the return matrix follows the straddle opened on a given T-x day so it does account for the stock price movement.
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- rv chart
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But how is the RV chart, that we use and reference it every time in our trade selection, then being calculated? For example a line that is the evolution of a straddle during the course of an earnings date, are the contracts not constant during a specific earnings date, so that we can see how it behaves during the specific earnings cycle? Do you mean that every trading day, from T-20 to T-0, we find a new ATM Straddle? Because when i go to the straddle matrix https://www.volatilityhq.com/backtester/return_matrix/?symbol=aapl&metric_type=Median&start_date=2023-10-01&show_individual_matrix=Yes&strategy_type=Straddle&long_delta=0.4&nbweeks=-1&submit=Run+backtest i can see that the strike price used for the calculations is constant (185) so i think that also in the line chart the same strike price (so the same contracts) are being used throughout a specific earnings cycle
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RV charts use the ATM straddle each day, so the strike changes as the stock price moves. Therefore the straddle RV chart is kind of a worst case picture because it doesn’t account for stock price movement. Conversely, the calendar RV chart is a best case picture for the same reason on not accounting for stock price movement.
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Sorry if i overwhelmed you with info in my previous post. The main questions i have are: is RV calculated as RV = Straddle cost / Stock Price ? We define the distance from earnings date in trading days (T-xx), find the ATM Straddle of that day, and keep those options contracts constant throughout our calculations, till earnings date, and we only calculate the price changes of those specific contracts throughout the trading days?
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It's crucial to note that Dan doesn't trade using his own account. While he excels as a salesman and teacher, I wouldn't seek mentoring sessions from someone who isn't actively involved in trading themselves.
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Pinkwolf3 joined the community
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Grey Chen joined the community
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@Magnetar I am replying here regarding your issues with ONE and Parallels because I think it is a better fit than SteadyYields. The latest version of ONE (beta v2.0.78) has included support for the M family of Apple chips, if you use the 32 bit version.
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Guys if someone could help me with this problem i have. I am currently learning a little python code, and tried to simulate the Straddle RV Charts. This is the AAPL RV chart for earnings date 2024-02-01 from volatilityHQ: and this is my chart: As you can see the differences are beyond obvious. My frustration is that although the data is checked and i think the calculations are correct (concerning the RV Calculation) I get totally different results. These are my calculations that resulted in my line chart. Does anybody notice something wrong here? 04/10/2024 09:04:10 PM - root - DEBUG - Closest expiration date identified: 2024-02-02 04/10/2024 09:04:10 PM - root - DEBUG - Closest expiration date after 2024-02-01: 2024-02-02 04/10/2024 09:04:10 PM - root - DEBUG - Filtered calls and puts for closest expiration date: 2024-02-02, Calls: 43, Puts: 43 04/10/2024 09:04:10 PM - root - DEBUG - Selected ATM Call: AAPL240202C00185000, ATM Put: AAPL240202P00185000 04/10/2024 09:04:10 PM - root - DEBUG - Calculated straddle cost: 9.81 for earnings date: 2024-02-01 04/10/2024 09:04:10 PM - root - DEBUG - Calculated RV: 0.05 for earnings date: 2024-02-01 04/10/2024 09:04:10 PM - root - DEBUG - AAPL Last Quote Price for T-20: 184.25 Trading Date for T-20: 2024_01_03 ATM Call Symbol for T-20: AAPL240202C00185000 ATM Call Last Price for T-20: 4.98 ATM Put Symbol for T-20: AAPL240202P00185000 ATM Put Last Price for T-20: 4.83 Straddle Cost for T-20: 9.81 RV for T-20: 0.0532 04/10/2024 09:04:10 PM - root - DEBUG - Processing trading day: 2024_01_04 04/10/2024 09:04:11 PM - root - DEBUG - Trading Date for T-19: 2024_01_04 ATM Call Symbol for T-19: AAPL240202C00185000 ATM Call Last Price for T-19: 3.75 ATM Put Symbol for T-19: AAPL240202P00185000 ATM Put Last Price for T-19: 5.8 last Quote Price for T-19: 181.91 Straddle Cost for T-19: 9.55 RV for T-19: 0.0525 04/10/2024 09:04:11 PM - root - DEBUG - Processing trading day: 2024_01_05 04/10/2024 09:04:11 PM - root - DEBUG - Trading Date for T-18: 2024_01_05 ATM Call Symbol for T-18: AAPL240202C00185000 ATM Call Last Price for T-18: 3.23 ATM Put Symbol for T-18: AAPL240202P00185000 ATM Put Last Price for T-18: 6.25 last Quote Price for T-18: 181.18 Straddle Cost for T-18: 9.48 RV for T-18: 0.0523 04/10/2024 09:04:11 PM - root - DEBUG - Processing trading day: 2024_01_08 04/10/2024 09:04:11 PM - root - DEBUG - Trading Date for T-17: 2024_01_08 ATM Call Symbol for T-17: AAPL240202C00185000 ATM Call Last Price for T-17: 5.33 ATM Put Symbol for T-17: AAPL240202P00185000 ATM Put Last Price for T-17: 4.0 last Quote Price for T-17: 185.56 Straddle Cost for T-17: 9.33 RV for T-17: 0.0503 04/10/2024 09:04:11 PM - root - DEBUG - Processing trading day: 2024_01_09 04/10/2024 09:04:11 PM - root - DEBUG - Trading Date for T-16: 2024_01_09 ATM Call Symbol for T-16: AAPL240202C00185000 ATM Call Last Price for T-16: 5.0 ATM Put Symbol for T-16: AAPL240202P00185000 ATM Put Last Price for T-16: 4.15 last Quote Price for T-16: 185.14 Straddle Cost for T-16: 9.15 RV for T-16: 0.0494 04/10/2024 09:04:11 PM - root - DEBUG - Processing trading day: 2024_01_10 04/10/2024 09:04:12 PM - root - DEBUG - Trading Date for T-15: 2024_01_10 ATM Call Symbol for T-15: AAPL240202C00185000 ATM Call Last Price for T-15: 5.5 ATM Put Symbol for T-15: AAPL240202P00185000 ATM Put Last Price for T-15: 3.65 last Quote Price for T-15: 186.19 Straddle Cost for T-15: 9.15 RV for T-15: 0.0491 04/10/2024 09:04:12 PM - root - DEBUG - Processing trading day: 2024_01_11 04/10/2024 09:04:12 PM - root - DEBUG - Trading Date for T-14: 2024_01_11 ATM Call Symbol for T-14: AAPL240202C00185000 ATM Call Last Price for T-14: 5.03 ATM Put Symbol for T-14: AAPL240202P00185000 ATM Put Last Price for T-14: 3.8 last Quote Price for T-14: 185.59 Straddle Cost for T-14: 8.83 RV for T-14: 0.0476 04/10/2024 09:04:12 PM - root - DEBUG - Processing trading day: 2024_01_12 04/10/2024 09:04:12 PM - root - DEBUG - Trading Date for T-13: 2024_01_12 ATM Call Symbol for T-13: AAPL240202C00185000 ATM Call Last Price for T-13: 4.8 ATM Put Symbol for T-13: AAPL240202P00185000 ATM Put Last Price for T-13: 3.65 last Quote Price for T-13: 185.92 Straddle Cost for T-13: 8.45 RV for T-13: 0.0454 04/10/2024 09:04:12 PM - root - DEBUG - Processing trading day: 2024_01_16 04/10/2024 09:04:12 PM - root - DEBUG - Trading Date for T-12: 2024_01_16 ATM Call Symbol for T-12: AAPL240202C00185000 ATM Call Last Price for T-12: 3.8 ATM Put Symbol for T-12: AAPL240202P00185000 ATM Put Last Price for T-12: 4.65 last Quote Price for T-12: 183.63 Straddle Cost for T-12: 8.45 RV for T-12: 0.0460 04/10/2024 09:04:12 PM - root - DEBUG - Processing trading day: 2024_01_17 04/10/2024 09:04:13 PM - root - DEBUG - Trading Date for T-11: 2024_01_17 ATM Call Symbol for T-11: AAPL240202C00185000 ATM Call Last Price for T-11: 3.35 ATM Put Symbol for T-11: AAPL240202P00185000 ATM Put Last Price for T-11: 5.2 last Quote Price for T-11: 182.68 Straddle Cost for T-11: 8.55 RV for T-11: 0.0468 04/10/2024 09:04:13 PM - root - DEBUG - Processing trading day: 2024_01_18 04/10/2024 09:04:13 PM - root - DEBUG - Trading Date for T-10: 2024_01_18 ATM Call Symbol for T-10: AAPL240202C00185000 ATM Call Last Price for T-10: 6.55 ATM Put Symbol for T-10: AAPL240202P00185000 ATM Put Last Price for T-10: 2.45 last Quote Price for T-10: 188.63 Straddle Cost for T-10: 9.00 RV for T-10: 0.0477 04/10/2024 09:04:13 PM - root - DEBUG - Processing trading day: 2024_01_19 04/10/2024 09:04:13 PM - root - DEBUG - Trading Date for T-9: 2024_01_19 ATM Call Symbol for T-9: AAPL240202C00185000 ATM Call Last Price for T-9: 8.45 ATM Put Symbol for T-9: AAPL240202P00185000 ATM Put Last Price for T-9: 1.54 last Quote Price for T-9: 191.56 Straddle Cost for T-9: 9.99 RV for T-9: 0.0522 04/10/2024 09:04:13 PM - root - DEBUG - Processing trading day: 2024_01_22 04/10/2024 09:04:13 PM - root - DEBUG - Trading Date for T-8: 2024_01_22 ATM Call Symbol for T-8: AAPL240202C00185000 ATM Call Last Price for T-8: 10.25 ATM Put Symbol for T-8: AAPL240202P00185000 ATM Put Last Price for T-8: 1.03 last Quote Price for T-8: 193.89 Straddle Cost for T-8: 11.28 RV for T-8: 0.0582 04/10/2024 09:04:13 PM - root - DEBUG - Processing trading day: 2024_01_23 04/10/2024 09:04:14 PM - root - DEBUG - Trading Date for T-7: 2024_01_23 ATM Call Symbol for T-7: AAPL240202C00185000 ATM Call Last Price for T-7: 11.1 ATM Put Symbol for T-7: AAPL240202P00185000 ATM Put Last Price for T-7: 0.7 last Quote Price for T-7: 195.18 Straddle Cost for T-7: 11.80 RV for T-7: 0.0605 04/10/2024 09:04:14 PM - root - DEBUG - Processing trading day: 2024_01_24 04/10/2024 09:04:14 PM - root - DEBUG - Trading Date for T-6: 2024_01_24 ATM Call Symbol for T-6: AAPL240202C00185000 ATM Call Last Price for T-6: 10.6 ATM Put Symbol for T-6: AAPL240202P00185000 ATM Put Last Price for T-6: 0.8 last Quote Price for T-6: 194.5 Straddle Cost for T-6: 11.40 RV for T-6: 0.0586 04/10/2024 09:04:14 PM - root - DEBUG - Processing trading day: 2024_01_25 04/10/2024 09:04:14 PM - root - DEBUG - Trading Date for T-5: 2024_01_25 ATM Call Symbol for T-5: AAPL240202C00185000 ATM Call Last Price for T-5: 10.15 ATM Put Symbol for T-5: AAPL240202P00185000 ATM Put Last Price for T-5: 0.83 last Quote Price for T-5: 194.17 Straddle Cost for T-5: 10.98 RV for T-5: 0.0565 04/10/2024 09:04:14 PM - root - DEBUG - Processing trading day: 2024_01_26 04/10/2024 09:04:14 PM - root - DEBUG - Trading Date for T-4: 2024_01_26 ATM Call Symbol for T-4: AAPL240202C00185000 ATM Call Last Price for T-4: 8.58 ATM Put Symbol for T-4: AAPL240202P00185000 ATM Put Last Price for T-4: 1.03 last Quote Price for T-4: 192.42 Straddle Cost for T-4: 9.61 RV for T-4: 0.0499 04/10/2024 09:04:14 PM - root - DEBUG - Processing trading day: 2024_01_29 04/10/2024 09:04:15 PM - root - DEBUG - Trading Date for T-3: 2024_01_29 ATM Call Symbol for T-3: AAPL240202C00185000 ATM Call Last Price for T-3: 8.03 ATM Put Symbol for T-3: AAPL240202P00185000 ATM Put Last Price for T-3: 1.08 last Quote Price for T-3: 191.73 Straddle Cost for T-3: 9.11 RV for T-3: 0.0475 04/10/2024 09:04:15 PM - root - DEBUG - Processing trading day: 2024_01_30 04/10/2024 09:04:15 PM - root - DEBUG - Trading Date for T-2: 2024_01_30 ATM Call Symbol for T-2: AAPL240202C00185000 ATM Call Last Price for T-2: 5.4 ATM Put Symbol for T-2: AAPL240202P00185000 ATM Put Last Price for T-2: 2.29 last Quote Price for T-2: 188.04 Straddle Cost for T-2: 7.69 RV for T-2: 0.0409 04/10/2024 09:04:15 PM - root - DEBUG - Processing trading day: 2024_01_31 04/10/2024 09:04:15 PM - root - DEBUG - Trading Date for T-1: 2024_01_31 ATM Call Symbol for T-1: AAPL240202C00185000 ATM Call Last Price for T-1: 3.3 ATM Put Symbol for T-1: AAPL240202P00185000 ATM Put Last Price for T-1: 3.75 last Quote Price for T-1: 184.16 Straddle Cost for T-1: 7.05 RV for T-1: 0.0383 04/10/2024 09:04:15 PM - root - DEBUG - Processing trading day: 2024_02_01 04/10/2024 09:04:15 PM - root - DEBUG - Trading Date for T-0: 2024_02_01 ATM Call Symbol for T-0: AAPL240202C00185000 ATM Call Last Price for T-0: 4.23 ATM Put Symbol for T-0: AAPL240202P00185000 ATM Put Last Price for T-0: 2.43 last Quote Price for T-0: 186.86 Straddle Cost for T-0: 6.66 RV for T-0: 0.0356 04/10/2024 09:04:15 PM - root - DEBUG - Processing trading day: 2024_02_02 04/10/2024 09:04:15 PM - root - DEBUG - Trading Date for T--1: 2024_02_02 ATM Call Symbol for T--1: AAPL240202C00185000 ATM Call Last Price for T--1: 0.9 ATM Put Symbol for T--1: AAPL240202P00185000 ATM Put Last Price for T--1: 0.02 last Quote Price for T--1: 185.85 Straddle Cost for T--1: 0.92 RV for T--1: 0.0050
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Makes sense @Kim. Thank you for your honest response. I appreciate it.
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Rotek0x joined the community
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I think the first question to ask when considering a subscription service is: do they actually trade? If they do, do they track their live trades? Do they publish their track record? If yes, is it honest and transparent? If they don't trade, how do you even know that the methods they teach are profitable? As Tom Nunamaker mentioned, it's like learning to be a surgeon from someone who hasn't operated in 12 years.. (now it would be 20 years). I think the fact that they now charge monthly subscription instead of one time fee doesn't change all previous comments. The essence is the same.
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Twxqrpalula joined the community
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@Kim after all that was written here, Dan offered a new Pro plan https://www.sheridanriskmanagement.com/subscription/pro here. Do you think it is worth subscribing? Thank you. for your opinion. Petr
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It’s showing a general correlation between treasuries and oil, it’s not meant to be specific to the strategy.
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Thanks, I understand that however how is the publication supporting (consistent with) the strategy proposed here?
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Yield spreads are not the same as Treasury yields.
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It will always be based upon $10,000. I will be using a variety of hedges, depending upon the setup.
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Hi @SBatch this is an interesting strategy, one point that I would like to confirm is, unless I missed something, the publication that you quoted above (sciencedirect) seems to indiciate the following ...'our findings confirm that changes in the yield spread not only correlate with, but also drive the returns on crude oil,' isn't this saying the opposite of the strategy (e.g. crude being the lead indicator)? Thanks
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On Schwab, I can trade level one and level 2 options (such as diagonals) in IRA accounts on the institutional side (e.g. for my investment clients). HOWEVER, they have to be cash secured. So if I open a 100-110 vertical spread, then I have to have the $10 in the account (which can be in something like SGOV). It's basically margin lite. I do trade Anchor in IRA accounts on Schwab, but the cash reserves are different than normal margin accounts.
