InvestTrader

For me, finding the appropriate trade size was one of the things that had the most impact on my trading. When the trades are too large for our account or for our ability to handle a loss, the probability of panicking and making wrong decisions is enormous. For me, it is comforting to enter a trade and calmly face the worst possible scenario as something I can take or accept. This gives me the necessary tranquility to make rational and calm decisions regarding trade management. It’s often the difference between winning or losing

Thank for the insights @Yowster It's not a typical SO trade. t's more like a lotto, given the contradictory signs.

Thank you for the help and the explanations., @TrustyJules Much appreciated

@TrustyJules, Thank you. So, if I understand correctly this IV indicator doesn't have any value in this analysis. Given this and the fact that you pointed that RV is currently above average, we don't have a case for make a AMAT straddle. Correct? Also looking at the historical results, I noticed an outsized value of 75%. Without this value the average would be much lower (around 7%). This is also a negative point. Do you agree?

AMAT has the ER scheduled to May/16 AMC. Today (May/14) is T-2 As an exercise I looked at it as a potential candidate to two day straddle. I present bellow what I could understand from VolatilityHQ data. Would you please comment on my interpretation and conclusion? Please keep in mind that I am in the learning process on interpreting these charts. Thanks in Advance. RV falls in 6 of the 8n cycles. On average falls 9% The stock doesn't seem to move much (exception for two of the cycles) Straddle IV more than doubles AMAT returns on average 15.42% on this trade. Five of eight cycles return positive. Biggest loss is near 13% My conclusion: The fact that RV usually goes down and the stock doesn't move much makes this stock a bad candidate to a T-2 straddle. However the big jump in IV and the fact that the result is historically positive makes me think that it could be a good candidate. Given these data I would enter the trade.

Today it felt particularly good to reread this article. Thanks

I think the dots (green or red) represent the different P&L's for the day in the projection As far as I know ONE doesn't offer automated backtesting in the sense that you can set the parameters and the software repeats trade after trade after trade

@Romuald, do you use ONE to send the trades to the broker? I use IBKR and ONE can do that via the TWS API. What is experience or opinion on this?

@Kim, @Ringandpinion, Thank you!

Hi! Since all or the majority of the tools mentioned and/or used as subscription based and in order to avoid incur in to much costs in the early stages, I would like to ask: 1) What are the tools that really are a "must have" 2) Is it possible to establish an order of priority for these tools? For instance ... "The first tool you must have is Option Net. The second is ..." Thank You!