It is just the equivalent of a put ladder ... another example of TastyTrade just making names up ... when a perfectly good one already exists
Just in case you missed the outcome of her 'technical error' ... https://www.elitetrader.com/et/threads/karen-at-court.312629/page-13
An iron condor, or any other multi-leg opening trade, is just an opening trade that results in a complex position with a non-linear payoff. Being complex doesn't make it a "strategy"; a strategy must include processes of entering, adjusting and exiting your positions. "Buy 10000 shares and hold forever until price triples" is a strategy; an iron condor is not, just as "buy shares" alone is not.
my biggest loss ever was while I was still following the tasty trade method.. sell strangles at 30Delta OTM, roll up one strike, roll out the other, protective stop at 2X max credit yada yada yada.. Then you get caught in a 5-sigma move, your stop does not trigger and your are blown out of the water.
What makes you think they "just manage winners and stay small" when all the evidence is ... they spend most of their time managing losing trades ... by rolling the untested side ... and managing "inverted" ( Guts ) strangles ... their really big losses come from 'scalps' gone wrong ... small scalps on index ... that turn into big losers ... that turn into core positions ... that can take years to work through Most TastyTrade concepts are just full of BS ( BlackScholes ? )
Do you know "which" TT personality recommends this ... when they started recommending it ... whether they actually follow that rule themselves
I used to watch tons of TT videos those days (believing I was educating myself, ahaha).. Sosnoff for sure said it more than once, probably it was also in the section "Mike and his whiteboard". Edit: as for following their own rules, nobody knows.. I guess they make most of their money on commissions, not on active trades