Theoretical example: Let’s say I create a strategy with a take profit to stop loss ratio of 1:3, which would result in having a win-rate of 75%....
This idea came to my mind because, most options traders(especially the premium sellers) claim that adjustments techniques is an important...
Is it mathematical possible to turn a trading strategy with zero expected value(but a high win-rate), to a long-term profitable strategy by using...
Thanks. Noted, I will.
A rough guide(or approximation) to the probability of touch(POT) for a strike is the delta of its option x 2. For example, a 30 delta OTM option...
The term correlation is used to describe 2 trade-able assets with price that tend to move in same direction(or opposite directions). However, are...
Yes, the key word is edge. Hopefully, I do one day.
But then does buying options work(I doubt that)? Or nothing really works?
Oh yes, I was wrong, my question made no sense. Buyers and Seller is what actually move price.
I am sure if a new underlying is created that the price is randomly generated by a machine. I am sure we would still see successful...
Ok, I get your point, that it’s some skill game and some people are successful at it. However, let’s ignore options(non-directional trading),...
Thinking about it, that makes sense. Got it.
Trading and options seems to be one big gambling machine. Every view is subjective and no one can predict the future. It appears the only people...
Well rethinking your view either does not mean you can’t still be wrong again. Well what if you roll out in time but think it’s still going to...
Ok I get it. Opening a new trade with less profit potential and same risk does not sound like a good. However, what about rolling out in time,...
I don’t know why rolling both legs (tested and untested) of a short strangle, so as to recenter it to the current market price(without rolling out...
Why is it that most often when people talk about the risk of a short strangle, it is mostly only mentioned that price moving outside the strike...
From my understanding it seems there are 2 ways to invest in bonds and both have entirely different payoffs/terminal values. Can you tell me if I...
Ok those are 2 different things. Got it.
Well that is confusing. I would have to do some studying on that subject. I came across the attached picture from a website, it shows the payoff...
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