Hammering 1 Crude Oil contract in a strangle

Discussion in 'Journals' started by fullautotrading, Apr 24, 2019.

  1. destriero

    destriero

    Your haircut is reduced due to the synthesis of a synthetic call when you're long, and a synthetic put when you're short (futures). SPAN would account for this even though you are obviously not doing so.
     
    #21     Jun 23, 2019
    fullautotrading likes this.
  2. That's right destriero. This trading procedure is intended to keep SPAN and Exposure margin as low as possible (small investor). (It is in fact, understandably, quite hard and slow to produce a profit "juggling" only one contract, but the purpose of the experiment is obviously to see if it can be done, statistically, in the long term.)
     
    #22     Jun 23, 2019