How to never get an account wiped out?

Discussion in 'Strategy Building' started by gg12, Jan 9, 2007.

  1. gg12

    gg12

    Two bad days.

    06/14/07 -57.7%
    06/15/07 -24.5%

    Long straddle was not the right tactics.
     
    #211     Jun 15, 2007
  2. gg12

    gg12

    06/18/07 -35.8%
    06/19/07 +8.9%
     
    #212     Jun 19, 2007
  3. gg12

    gg12

    06/20/07 -58.2%
     
    #213     Jun 20, 2007
  4. neke

    neke

    Gosh! These are really extreme moves. I guess your average has come down below 0.5%. Not really much to show for that volatility. I believe you must have done some backtesting before starting with this strategy? Was the expected compounded average as high as 3.0% per day which you are aiming at? I will understand a 90% drawdown if the expectation is really as high as that.
     
    #214     Jun 20, 2007
  5. gg12

    gg12

    neke

    Performance is bad. I am switching between long and short strangle all the time.

    Need to rethink my strategy again.
     
    #215     Jun 21, 2007
  6. gg12

    gg12

    06/21/07 -23.8%

    Avg. is at 0.1% in 115 days.
    I am starting from nearly zero again.

    Target is avg. 3% per day!
     
    #216     Jun 21, 2007
  7. gg12

    gg12

    06/26/07 +3.5%

    Back to writing bear call and bull put spreads (digital options) on the Dow.

    I know that I am starting from scratch.
     
    #217     Jun 27, 2007
  8. gg12

    gg12

    Intraday movements are gigantic!!! More than 200 Dow points intraday.

    Not good for shorting options which is my core business.

    06/27/07 -34.3%
    06/28/07 +21.9%
    06/29/07 +10.4%

    Don't confuse the absolute values. Need log to compare.
    I am nearly at my start point at 01/03/07. That's 119 days ago.

    But the account is not wiped out since 119 days (searching for something positve...).
     
    #218     Jun 29, 2007
  9. gg12

    gg12

    07/02/07 -10.7%

    NEVER FIGHT A TREND!

    In most cases even in a sideways market the trend will finally continue. More continuations than reversals!?
     
    #219     Jul 2, 2007
  10. gg12

    gg12

    07/09/07 -22.5%
     
    #220     Jul 9, 2007