Hello fellow EliteTraders, follow me as I trade My strategy is going to be 5/16/16/5 SPX Iron condors managed at 50% or 21 DTE I am running it at 75% of my portfolio. www.tastytrade.com/tt/shows/market-measures/episodes/portfolio-allocation-for-wide-ics-part-2-10-20-2016 I will be posting more regarding the reasons as to why this is my choice of strategy. If you have a question feel free to send me a PM or post on this thread !
REASON #1 CAGR CAGR CAGR! Were looking for predictable results that can give us REAL returns with minimal drawdowns. There are not many investors in the world that can beat a CAGR of 24% look it up! the top CTA i could find had a CAGR of 16%. Warren Buffet , George Soros have according to different sources CAGRs of around 25%. I am not going to try to push my luck! As you can see Making 24% as opposed to the s&p's 7.5% is a BIG difference.
Tastytrade strategy was running 30% max capital allocated with a final recommendation of 25%. They had to throttle down the risk. You are running at 75%. How do you intend to manage 3x the risk better than 2 guys who survived the 1987 crash and a couple more others after that?
Compounded growth is explosive/exponential -- it's like an A-Bomb. -- if you can have greater percentages in shorter time frames...the better
What are you saying Tom? That's 20% returns are possible... duh... @xandman has a good point though... why 75% of netliq? Get Rich Quick??