Hi Dennis,
What do you mean by option having a heavy « overhead »?
I had the plan to buy options in the money when I get a signal from my
system. Wouldn't that be a good plan? In what futures would be better than
options?
Thanks,
Louis
2008/2/26, Dennis Brown [EMAIL PROTECTED]:
Louis,
Louis,
Bid/Ask Spread, IV, Theta, Beta, Gamma, life cycle of the time decay.
Don't trade options until you have internalized what these mean to
your profits. Otherwise, it would be like trying to play chess
without knowing how the knight moves --you will get slaughtered.
Profits are
Hi,
I have some experience with options, and it seems to me that options far in
the money can be a good alternative to actually buying the stock itself. My
real question was to know if there is really a big difference between
futures and options and how futures actually compare to options in
Futures are much more closely aligned to the underlying index than
options. Futures are in bigger chunks than options for trading.
On Feb 27, 2008, at 10:36 AM, Louis Préfontaine wrote:
Hi,
I have some experience with options, and it seems to me that options
far in the money can be a
There are a number of good books for options. One of my favorites is
Natenberg's Option Volatility and Pricing.
Bill
- Original Message -
From: Dennis Brown
To: amibroker@yahoogroups.com
Sent: Wednesday, February 27, 2008 10:23 AM
Subject: Re: [amibroker] Re: PA% Upper
Option's time decay is one significant difference relative to futures which
requires you to think about your view of the stock going forward. Profit
potential is primarily a function of you and to a lesser extent the vehicle.
Bill
- Original Message -
From: Louis Préfontaine
Futures also have time decay, but it is at a more sensible rate tied
to the current interest rate. Futures also expire and must be rolled
over to stay in a position. With options, you can buy LEAPS which
have a long time to expiration, and a more sensible time decay.
However, the
Yeh, interest, and dividends, get rolled up into fair value but it's not
something one usually pays too much attention to (at least in my case) unlike
time decay with options which, of course, has its plus side.
Bill
- Original Message -
From: Dennis Brown
To:
I understand. I sell as many options as I buy, and I don't hold
futures overnight. I want the house advantage. If I do buy an option
for short term delta balancing, it is front month deep in the money
(68% probability of closing) so almost no time decay and bought with a
limit order at
You don't buy options? I assume you don't mean that. As for margin
requirements your broker probably has a document/table that has the information
that you need.
Bill
- Original Message -
From: Louis Préfontaine
To: amibroker@yahoogroups.com
Sent: Wednesday, February 27,
I draw your attention to the following article, especially item 3:
Who is the most unusual trader you ever interviewed?
http://www.moneybags.com.au/profile.asp?id=1363
Two consecutive 300%PA plus public performances from Mark Cook.
It is possible that he was just incredibly lucky (are we
A profit of 1% per day, every trading day, grows so fast that the
account balance is larger than all the real estate in the US in just
a few years.
Hypothetical numbers can be quoted to create a desired effect e.g. if
we put it this way, things look a lot different:
A trader starting with
100% can be made in the early years but as the account grows returns
diminish.
Dave
--- In amibroker@yahoogroups.com, brian_z111 [EMAIL PROTECTED] wrote:
A profit of 1% per day, every trading day, grows so fast that the
account balance is larger than all the real estate in the US in just
No need to argue the point. Everyone is right, depending on the
particular circumstances.
As I have pointed out before, very high returns (3%/day average) are
being made by some traders I know using hardly more than a ruler for
their TA --trading trend lines and support and resistance
What house in San Jose can't be bought for $102,400,000?
$100k compounding at 100% per year for 10 years = $102 million.
start100,000
1200,000
2400,000
3800,000
41,600,000
53,200,000
66,400,000
712,800,000
825,600,000
9
This discussion is really interesting.
I have had some thinking and I still can't make up my mind on the best
strategy for someone like me who can't afford to be there all day long (for
now). I hesitate between two strategies, both using EOD data and buy at
open/market orders:
1) Using MA,
very high returns (3%/day average) are being made by some traders I
know
Even if they are only using $100,000 to trade with they are making
$750,000, year in and year out. Same as a 75% return on a million
dollars.
--- In amibroker@yahoogroups.com, Dennis Brown [EMAIL PROTECTED] wrote:
No
Now you understand! :-)
On Feb 26, 2008, at 3:29 PM, dave_88_1961 wrote:
very high returns (3%/day average) are being made by some traders
I know
Even if they are only using $100,000 to trade with they are making
$750,000, year in and year out. Same as a 75% return on a million
Hello Dave,
Yes, that is my view but I hadn't spelled it out.
100% PA is quite achieveable for small traders but that would become
more difficult as the account grows.
I assume 90% of traders would be happy to cap their trading account
at a manageable level and live off the proceeds, plus
Dennis,
No need to argue the point.
I believe there is a need to argue the point because negative
comments from other traders affect the way we trade and shouldn't go
unchallenged, especially if they not accompanied by objective
evidence.
I stand by my comment that 300-400%PA is the
What do you think is the best way to get high-returns... Is it trend
following, or switching from a breakout to another, or... For now I need
to work on EOD data because of work I can't be there all day long, but what
kind of system do you believe is the most profitable?
Thanks,
Louis
Louis,
That would require a book ;-)
A few starting tips:
EOD is an excellent place to start and to cut your teeth.
Daily bars are the natural rythm of the market.
Eventually you have to account for intra-day behaviour.
What do you think is the best way to get high-returns... Is it
trend
Thanks,
I am still developing after approx 4 years so 300-400 is a tentative
figure (I didn't pluck it out of thin air - it forced itself upon me
by observation). For that reason this is 'newish' thinking for me so
your comments are a perfect help for me to foramlise my thinking on
the
Hi Brian,
Just a completely naive question here. If one could make 300-400% a year,
why would he still be here on the internet helping others and trying to make
his program better. 300-400% a year would allow me to buy the Montreal
Canadiens in ten years! I would be as rich as Bill Gates in
Just a completely naive question here. If one could make 300-400%
a year,
why would he still be here on the internet helping others and
trying to make
his program better.
That is a fair question.
I might be crazy.
Most of the AB users who are doing 50% aren't talking about it.
They don't
Hi Brian,
I think I understand your point, but even 100%, that can be a lot of money.
100% of 500K is 250K each year and that's enough to live with some comfort.
Maybe it's the difference of age or the fact that we are not at the same
point in life or trading, but when you talk about trading been
The best system is one in which you control your emotions and emotional
responses. Learn the basics of TA, stick to the simple stuff, and most
importantly concentrate on money management. With that in hand, you can flip a
coin and beat most.
Bill
- Original Message -
From:
That's OK.
I understand your subtle points and your humour.
Rather a false paradise (cold comfort that you share it with 90% of
humanity).
Dennis and I are not focused on the money.
We are in pursuit of the perfect trade (like Federer when he is
playing tennis - he watches the ball and
Louis,
The advice from Bill below about trading is the best general advice
you are likely to receive.
I might also recommend a book to you Trading in the Zone by Mark
Douglas. This should be read every few months.
The TA is only 25% of successful trading, and must be accompanied by
http://en.wikipedia.org/wiki/Larry_Williams_(trader)
http://www.robbinstrading.com/worldcup/standings.asp
Scroll down for historical results.
--- In amibroker@yahoogroups.com, brian_z111 [EMAIL PROTECTED] wrote:
Howard,
Any time someone suggests a growth of more than about 40% per
year,
http://en.wikipedia.org/wiki/Larry_Williams_%28trader%29
--- In amibroker@yahoogroups.com, brian_z111 [EMAIL PROTECTED] wrote:
http://en.wikipedia.org/wiki/Larry_Williams_(trader)
http://www.robbinstrading.com/worldcup/standings.asp
Scroll down for historical results.
--- In
Would you consider there is more money to be made from futures than from
stock?
Louis
2008/2/26, brian_z111 [EMAIL PROTECTED]:
http://en.wikipedia.org/wiki/Larry_Williams_(trader)
http://www.robbinstrading.com/worldcup/standings.asp
Scroll down for historical results.
--- In
Louis,
I trade stock, options, and futures.
Futures are leveraged. That means that you are essentially borrowing
the money to buy and sell an index with a small down payment. Say
you wanted to trade the SPX SP 500 index ($1381.29 close today). You
could trade the SPY ETF for
33 matches
Mail list logo
