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cdcaveman

Registered: Aug 2011
Posts: 3518

09-12-12 06:20 AM

Quote from oldtime:

no kidding man, that's exactly how I started out. Back then they called them OEX options, I don't know if they even still trade them now. They were options on the S&P 100 index.

It's a rough way to go. The worst feeling I ever had was when I was trading some OPM and got caught legging in to a calendar spread and in a few minutes had lost more than the account was worth.

And that was after I explained to them that it was a very conservative strategy.

haha... i started out just outright buying premium... caught me for like 5 grand in one of my first trades.. i learned about theta quick like... i trade alot of flys and ratios...

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oldtime

Registered: Jun 2011
Posts: 7389

09-12-12 06:35 AM

Quote from cdcaveman:

haha... i started out just outright buying premium... caught me for like 5 grand in one of my first trades.. i learned about theta quick like... i trade alot of flys and ratios...

yeah it doesn't take you long to figure out that they really don't offer you anything on a regular basis that is worth buying. And selling isn't that much better.

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cdcaveman

Registered: Aug 2011
Posts: 3518

09-12-12 06:43 AM

Quote from oldtime:

yeah it doesn't take you long to figure out that they really don't offer you anything on a regular basis that is worth buying. And selling isn't that much better.

Ya chose your weapon of self destruction long vol or short.

Bleed slow or blow up all of a sudden

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plsnobull

Registered: Sep 2012
Posts: 10

09-13-12 01:18 PM

Quote from NoDoji:

Audited statements won't help anyone trade. Rather than continue to post here off-topic, visit CL Redux for another example of precision price action scalping concepts:

http://www.elitetrader.com/vb/showt...pagenumber=3112

You realize that anyone can write down a sequence of gains and claim he is achieving that in real trading. If you cannot produce any records to back your statements, better refrain from such practice imo. That is all I have to say. Bye.

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murray t turtle

Registered: Dec 2001
Posts: 6273

09-14-12 10:45 PM

Quote from peregrinecap:

I am looking for a logical/theoritical approach to position sizing. ...do you guys know of any other mathematical/logical methods of position sizing other than kelly?

Thanks.

==============
Yes;
less is more.
That is if you plan on being iin business much.LOL

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riffrafffpatrol

Registered: May 2012
Posts: 203

09-18-12 02:39 AM

Quote from MasterGambler:

Position size itself isn't important...

Absolutely absurd.

Position size is EVERYTHING.

You MUST risk the same amount on every trade.

If you don't... all other stats are meaningless.

Why?

You can be 90% right on a 1:1 r/r but only be risking $ 100/trade... then you get cocky and decide to risk 10x the amount and lose... after 10 trades you are down $ 100... vs being up $ 800. This was the simple math example. Many an account has been blown due to improper position sizing/risk management.

Locate an area on the chart where you are proven wrong. Determine your entry. Size accordingly based on the math that equals the risk amount you are willing to lose every time you press the trade trigger.

As simple as that-- if you have an edge and are looking at 1:2 or more risk to reward setups... you will succeed.

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