Here's the verdict of the high court. Judge yourself people how this corrupt system works...: ################# Magna Administrator Before I explain why it was moved to Chit Chat here are a few of the posts (not by the OP) from this 3-day old thread. —————————————————————————————————————————— "Oh good. I was just about to pull the trigger on the 1000% guaranteed system he offered a few months back. Is that one still available" "Mods should move the thread to entertainment or chit chat or something." "Welcome to fantasy land." "It's obvious this guy is a tool shed. Hopefully no one is taking this serious. He's prob selling mentoring on PM." "This is total BS. The guy who wrote this is obviously full of manure. If he was making 180% with no risk he would be doing it from his mega yacht and not have time to post here. His time would be absorbed by having to eat grapes from 10 women feeding him." "I vote this quite possibly the most ignorant thread ever posted on here ....or at least top 10...any 2nds?" "[very next post] 2nd!" "Your 180% is probably based on some unrealistic annualization of a covered call strategy... The lack of option knowledge on this thread... is appalling" "Pretty soon he [OP] going to say if you order by midnight you will get 619 albums by Alvin and the Chipmunks. Again all of the newbies, if this did as well, big business be offering him billions to manage money." "This is scary to me! He's likely to cause tremendous upheaval in the worldwide market system with this incredible new option trading system. He will take Billions (Trillions?) out and make us all paupers! We just can't see how great it is because we are all so dum." "A man who says he has no funds to trade has designed a system in Disneyfuckingland that is basically a covered call program... Only on Elitetrader can some one who claims to not trade at all due to lack of funds and a ball sack be allowed to shit all over the place with chunky runs of post-Indian/Mexican food quality diarrhea without moving it to Shit Shat." "Congrats ET, you have made this site officially as shitty as a Sumo wrestlers ass crack floss on training day." "I think Baron needs to move this to Chit Chat before someone tries to copy the system and loses money and complains about the claim that a trading system guarantees 180% p.a." "your attempts at coming up with what you describe as a "guaranteed system" are so monumentally ludicrous, silly and misguided, they're worth little more than a chuckle from anyone who has actually been in the mkt for longer than a few months. To add insult to injury, when people actually take time and attempt to show you the obvious flaws in your reasoning, you refuse to listen..." —————————————————————————————————————————— Your thread was moved because it is inappropriate for a non-trader on a simulator to start a thread in the Options Forum with the completely misleading title "A free Trading System that guarantees at least 180% p.a." No one who actually trades would GUARANTEE that (or any) type of return, and leaving it near the top of the forums list belittles the seriousness of other trading threads. In the process it lowers ET to the level of a Yahoo Finance squabble and, frankly, is an embarrassment. You are welcome to discuss trading ideas but if you are going to be guaranteeing returns best to have those discussions in Chit Chat. And I suggest you try to have an open mind and listen to some of the things people are saying to you rather than constantly argue, call people names, and hit the Complain/Report button when things don't immediately go your way. Or as one of the posters in your thread said: "People are making fun of you, botpro, because there is nothing more hilarious than an arrogant idiot." Magna, Today at 8:51 PM ################# Baron ET Founder Well botpro, it just doesn't get much clearer than that. I have nothing else to add. Thanks Magna! Baron, Today at 9:18 PM #################
Yes, I admit I made cardinal error: I stated a guarantee. The funny thing is: the guarantee is indeed real. The medieval inquisition lives, I'm Giordano Bruno, I'm Galileo Galilei, and the Earth is flat if you believe it.
FYI: I've decided that I will continue the development of the system on a different site. People interessted in the system can get the latest version at this link: http://www.trade2win.com/boards/tra...tions-selling-systems-sys14-sys15-botpro.html
Good reason to worry: http://www.elitetrader.com/et/index...s-of-the-same-underlying-and-maturity.296930/
botpro, I promised I will help you... Here is my question. Assuming some static transaction costs (commissions plus bid/offer), can you estimate what your hedging breakeven point is? Specifically, suppose you have sold the put for a total of X premium. How many times can you perform the "hedging" steps your methodology requires before your total losses become greater or equal to X?
That is simple to answer: static stock commission for the 100 shares of the 1 contract = $1 (at the broker IB: $0.005 per share, minimum $1). Ie. 100 shares means Commission = max(100 * $0.005, $1) = $1. MaxHedgingTrades <= (X / $1), ie. X times If X equals the credit, ie. $460 like in the example, then with the monthly options obviously upto 460 hedging trades can be made before the credit gets eaten up. Ok, there are also some more costs (exchange fee etc) added to the commission, then let's say MaxHedgingTrades=400, ok? FYI: I think it was ironchef who tested it with SPY and discovered 13 crossings in the month he tested, ie. 13 trades... And: the hedging trades are necessary only if the current stock price is near the entry level. If the current stock price is away, then one can simply ignore all gaps or whatever . If you need any further input data for your calculations, so let me know. Update: The commission for the option itself costs $0.70 per contract, minimum $1 as well, ie. for this example it is $1, but this cost is of course only once.