A free Trading System that guarantees at least 180% p.a.

Discussion in 'Chit Chat' started by botpro, Apr 16, 2016.

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  1. botpro

    botpro

    Would you be interessted to learn a mathematical trading system that guarantees at least 180% p.a.?
    Ie. with zero risk! But only if you can apply it exactly as specified in the real market. With today's technology and global markets it is applicable.
     
  2. newwurldmn

    newwurldmn

    Kind of you to offer this. How does the guarantee work? If it doesn't earn the 180percent will you personally cover the difference?
     
    traderob, Martinghoul, d08 and 2 others like this.
  3. botpro

    botpro

    It is a provable system, everybody can verify it with some basic maths.
    Ie. mathematically it is sound, but application in the real markets is a question of its own,
    but as indicated in the OP it is IMO applicable if one uses, for hedging purposes, multiple markets (Americas, Europe, Asia).
     
    Last edited: Apr 16, 2016
  4. WeToddDid2

    WeToddDid2

    Yes; I am interested. Please pm me the free system.

    Thanks
     
  5. botpro

    botpro

    Thx. I'll post it publicly here if there is enough demand and interesst. :D
     
  6. botpro

    botpro

    Some further info about the announced free European Style options selling system with simple hedging (no delta-hedging):

    The system, as it will be presented, is a monthly system (shorter and longer timeframes are possible too).
    Applying on a stock with historical vola of 40% it makes "only" 9.2% per month; but repeated every month, ie. compounded, that makes 187%/year.
    The higher the volatility and/or the shorter the expiration of the option, then even more is possible.
    For demonstration purposes I'll stick with the 40% hist vola of the underlying, and monthly option.
    It can be proved with any options calculator (I used Black-Scholes-Merton pricing model).
    I'll also mention beforehand that it requires that one must buy the stock fully from day 1 on,
    ie. the money amount of "nContracts * 100 * StockPrice - CreditReceived" one has to have available
    at all times during the lifetime of the option, here 1 month.

    I'll post the system only if at least 10 to 15 people show interesst, either publicly or privately, in it.
    Or if someone else posts "it", or a system of similar caliber.

    (I can't imagine that nobody knows about this simple system. FYI some anecdotal background info:
    I only recently accidently (while searching something else in my old notes) re-discovered this system
    from my own notes of about 5 years ago when I had started playing with options, and was now very
    surprised that I hadn't grasped what I had in the hands then; maybe I was overloaded with the sheer
    amount of information as is usual when one starts studying a new thing...)
     
    Last edited: Apr 16, 2016
  7. wartrace

    wartrace

    No such thing as "Zero risk" in the markets.
     
    gkishot, d08, SouthbeachCTA and 2 others like this.
  8. botpro

    botpro

    If the markets were continous, ie. 24/7, then there would be no overnight and weekend gaps.
    If one can eliminate these risks, and can monitor the position continously around the clock (ideally 24/7 markets),
    then the said options selling system is IMO indeed risk-free because then a perfect hedging can be realised.

    Now, let's take a look: investment banks and prop trading firms have data lines to all major markets of the world around the clock.
    So, these institutions can, and I think they even do all the time, apply similar systems/strategies like this one. But nobody talks about it, of course... :)

    OTOH I've not thought yet about the global implications if with this system every options seller can make guaranteed 180+% per year...
    Indeed a frightening imagination... :D
     
    Last edited: Apr 16, 2016
  9. wartrace

    wartrace

    If pigs could fly I would need an umbrella 24/7. Are there any markets open 24/7?
    I stand by my assertion there is no such thing as "no risk".
     
    d08, SouthbeachCTA and lawrence-lugar like this.
  10. K-Pia

    K-Pia

    Especially under uncertainty.
    A vendor cares only about benefits.
    But a risk taker care even more about risks.
    No sain speculator would assume "Zero Risks".
     
    Last edited: Apr 16, 2016
    #10     Apr 16, 2016
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