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Showing results for tags 'performance'.
Found 64 results
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Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and exclude commissions, so your actual results will be lower, depending on the...
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Happy to join this cool forum! I’m fairly new to options. My account is with Interactive Brokers, and I've played around with their options trading interface on their main portal (account portal). Do I need to subscribe to their trading platform, or can I use the simpler interface? I’...
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Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and exclude commissions, so your actual results will be lower, depending on...
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AGGREGATE vs. ROI When you start looking at the different ways in which trading results are analysed, you’ll notice that they fall into two broad categories, Aggregate Analysis and Return on Investment analysis. Most investment services use versions of Aggregate Analysis which is a slipp...
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The assumption is that with careful stock selection, this strategy has a very high probability of success. I performed extensive backtesting on number of stocks, and the results were very promising. Stocks like AMZN and LNKD showed average gains of 30-35%. However, I also mentioned that...
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I was speaking to one trader the other day who had a $20,000 win with his first trade. I explained that this was almost the worst thing that could happen, because he started thinking “this is easy” and “if I can make this much when I don’t know anything, imagine what I can do when I get some more ex...
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The below chart illustrates the wide range of one-year outcomes. Investors should attempt to truly internalize the emotions they are likely to feel with this type of very normal and expected volatility associated with equity investing. Euphoria when volatility results in above average premiums and d...
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Coming to Peace With Market Volatility: Part II
Jesse posted a article in SteadyOptions Trading Blog
The bad news is that the annualized volatility of the market premium has been almost twice as large as the premium itself at 15%, and therefore has had a wide range of approximately -40% to +50%. Many are not fully aware of the implications volatility has on the probability of a positive outcome ove... -
Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and exclude commissions, so your actual results will be lower, depending on the broker and number of trades. Please read...
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Last week I came across the following Tweet: 1,300% return in one day?? This is how the trade looks in ONE software at the time of the opening: ONE shows a maximum return of only ~7%. What is going on here? This trade is long one call and short 2 calls. Which mea...
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First, as one of our members wrote, how many traders would consider 40%+ returns as subpar? We are definitely in a good shape if 41.7% is considered "well below" average. Most traders would be delighted to have our worst year as their best…But lets see what happened in 2019. Each year, o...
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Realistic Expectations: Using History as A Guide
Jesse posted a article in SteadyOptions Trading Blog
For example, Bernie Madoff was able to run the largest Ponzi Scheme for decades by intimately understanding human psychology. Criminals like Madoff are often highly intelligent people who know how to prey on human emotion. He knew that if he told people they were making extraordinary return... -
January 2019 performance was negatively impacted by few big losers. We present below the analysis of those losing trades. TLT butterfly trade The TLT butterfly was opened on November 9. It started with slightly delta negative bias with the expectation that TLT will continue drifting lower....
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Below is historical data for the Dimensional Equity Balanced Strategy Index since 1970. All figures are annualized. Average 12 months: 14.74% Best 12 months: 83.06% Worst 12 months: -51.27% Don't put your emergency fund in stocks. Average 3 years: 13.9...
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The potential for misunderstanding also exists among even experienced market participants, given that index levels have risen over time and potential emotional anchors, such as a 500-point move, do not have the same impact on performance as they used to. With this in mind, we examine what a point mo...
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For instance, if there were five long straddles on, it is fairly likely that there might also be a short volatility trade on as well. This would act as a hedge in the event that volatility dropped significantly, ameliorating some of the losses that would have come from the long straddles. Because...
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The graph below highlights the fact that while less than 2% of assets were negative in 2017, 90% of assets are negative YTD in 2018 -- they highest percentage since... ever. 2018 was a unique year in many areas. For example, 2018 was the only positive year for VXX since inception. On Mo...
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Our performance reporting is on the whole account and based on real fills. We put our money where our mouth is. Our members already know that we execute all trades that we share with members in our personal accounts. You can read here what our members think about us. But today I'm going...
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Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and exclude commissions, so your actual results will be lower. Commissions reduce the monthly returns by approximately 1-2% per mont...
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Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and exclude commissions, so your actual results will be lower. Commissions reduce the monthly returns by approximately 1-2% per mon...
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I received this very upsetting note yesterday. Dear Mark, I read in your book about volatility as one of the important factors of the price of an option I have a few question about, what you wrote. Implied Volatility vs. Future Volatility 1...
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Trading Drawdowns Peter Brandt explains: "There is a statistical concept known as the “underwater curve.” The underwater curve plots the time periods when new all-time high NAV levels are being registered (represented by “0” on an underwater curve) and the time periods in which...
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So I decided to check out one of the services reporting those remarkable returns. "Cumulative return"? Really? This service makes one trade per week, using weekly options expiring the same day. The way they present their results is "cumulative performance". They simply add the resul...
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Background An Anchor trade's goal is to prevent loss of capital while still generating a positive return in most market conditions. This strategy began with the premise that it must be possible to hedge against market losses without sacrificing all upside potential. The Ancho...
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So, let’s have a deeper look into those options trading experience levels and what they really are. Level 1- The Beginner This stage starts when you realize there is a way to make money while staying at home. At this stage you are probably neither aware of the dangers o...
