Karen the Supertrader - TastyTrade Hybrid Experiment

Discussion in 'Journals' started by Sweet Bobby, May 18, 2016.

  1. rawrick

    rawrick

    Nobody is asking me, but I say it anyway since it was awesome.

    It was my best day of this year. Up 5,5% today and 15,5% YTD. And my biggest position is short IWM that I am carrying since Jan. Damn you tastytrade!
     
    #1081     May 17, 2017
  2. The project is up 0.17% for the week ending May 19, 2017. It is down 3.00% since inception on January 19, 2017. I'm at Disney World this week and trading will be very light. I took off most of my trades if they were a scratch or better. Happy trading!
     
    #1082     May 21, 2017
  3. My net liq was down 1.52% for the day. I closed a number of short calls for the day for profits. Overall everything went according to plan.
     
    #1083     May 21, 2017
  4. DTB2

    DTB2

    Then why doesn't anyone ever show a profitable P/L?

    Because it's not about P/L; LOL

    Like Sweet Bobby, he's down 3% YTD and loving it. While ES is up 150 points on the year. Tastytrade is all about the action, that's it. The hosts cannot even amend their trading methods.
     
    #1084     May 22, 2017
    Macca1 and i960 like this.
  5. rawrick

    rawrick

    When the markets goes down, Sweet Bobby makes money. Until then he patiently sells premium to cover the damage.

    I trade like this longer. You make a little or lose a little on calm months. The moment the markets move in your favor you make a killing. That happens about 2-4 times a year.

    And who says that a strategy HAS to be up or the strategy is bad? You have to make every single day money or the strategy is bad? Last time I checked what counts is the end of the year.

    Last time I checked Tony's son Nick was up 10% YTD.

    Last time I checked they are trading since 30 years and have able to gain wealth. I don't know about you, but that is strong indication, that they know what they are doing.

    Last time I checked they are dozens of people calling in from all over the world having profits.

    Last time I checked they tell the price they get in and what price they get out. If you look at the option prices, it is exactly where the price is. Surprisingly they take off a lot of winners.

    Last time I checked they are carrying a lot of "static" short delta while selling rich equity premium, which is basically an underhedge. They wait until the marktes move in their favor to make a killing. Until then they sell the equity premium the cover or reduce the losses, while the market does not work in their favor. Very logical.

    But it is all about the P/L. Weak argument.
     
    #1085     May 22, 2017
    Sweet Bobby likes this.
  6. Pekelo

    Pekelo

    Last time I checked, he didn't.

    WTF is wrong with you? Are you reading a separate thread? He clearly stated he lost 1.52% when the market was down 1.7%. And even if he didn't say so, the strategy usually loses on days when the market moves big, be it up or down.

    What you are referring to is Taleb buying puts for expecting a big sell off.
     
    #1086     May 22, 2017
  7. Look at their earnings plays - it'll give you an idea about the overall strategy.
    They have 10 winners and 2 losers and the 2 losers are bigger than the 10 winners combined. Yes - they take off a lot of winners but the losers kill them. Don't get me wrong - they made decent money - most of it was when they sold ThinkOrSwim to TD - more than they ever made trading. When they did make money trading - the markets were very wide - so I would not compare this to today's environment - you hear them say "you could drive a truck through the bid/ask" that's mainly how they made money - not the strategy. Some of their backtests or "learnings" are ridiculous - e.g. if it took them 30 years to understand the challenge of correlation that tells you they may not be the fastest learners. On the bright side - they are funny and fun to watch - so they should continue - just ignore their findings or look at it a little bit more critically. Just cause there's lemmings following claiming they get the same results (slimfast, weight watchers, real estate gurus like kiyosaki, ...) doesn't mean much - some of them are happy following a path with others - hence this thread cause performance can't be the motivation (5 month and so far -3% return - the ones that make money with the trade small trade often approach are obviously not the followers)
     
    #1087     May 22, 2017
    Stymie likes this.
  8. ironchef

    ironchef

    Hi rawrick,

    I started trading options back in 2013 and at first tried to follow the tastytrade methodology. I have since moved away from exclusively carrying negative delta and gamma, because I found other methods better suited my trading style.

    You have been trading with the tastytrade method since 2013, I have a question for you:

    Can you explain and expand on how one carries a small static delta as a hedge? For example, since your overall delta is negative, I assumed "a small static delta" is positive as a hedge, and if so do you have to dynamically change your static delta as the trade move against or in your direction?

    This is a discussion forum and I am not debating or picking sides. I also recognize there is no right or wrong way for folks who knows how to trade and make adjustments.

    Thanks for posting.
     
    #1088     May 22, 2017
  9. ironchef

    ironchef

    Are there ways to manage the 2 losers by limiting the losses so that losers won't overwhelm the winners?

    I have been following the threads on Risk Management and try to understand if such is possible?

    Thanks.
     
    #1089     May 22, 2017
  10. DTB2

    DTB2

    Weak argument indeed.
     
    #1090     May 22, 2017