Karen the Supertrader - TastyTrade Hybrid Experiment

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

  1. isotope

    isotope

    Maverick, I appreciate your book recommendation. I shall buy the book.
    I am familiar with partial differentials. In my previous life, I built MRI scanners. I also understand the basic concepts of dynamic hedging. I read several books on quantitative finance. But I had missed Taleb's. I look forward to reading his work as I enjoyed his other book "fooled by randomness".
    Thanks again for the pointer.
     
    #181     Jun 3, 2016
  2. I've enjoyed my short time with this thread but I'm taking it to the garage. To those who have contributed - thank you!

    This thread is just too easy of a target for those who just want to come in and make the "shit hits the fan" and "your account is going to blow up" comments.

    I thought folks would appreciate a free sharing of trades along with questions and constructive criticism. I wanted to learn from this group about how to better enhance the strategy. We clearly have those criticizing who haven't even taken the time to look at my detailed spreadsheet where I've methodically recorded each and every trade. My life is too complicated and full to defend each and every attack on the strategy. It's a shame that the attackers don't even acknowledge my attempts to make the strategy safer. Is risk involved? Sure. But it was just an experiment. The experiment lives on - in my garage.

    Peace out everyone and Happy Trading!

    Bobby
     
    #182     Jun 3, 2016
  3. RRY16

    RRY16

    Some of your best work ever.
     
    #183     Jun 3, 2016
  4. i960

    i960

    1. GTC orders are not risk management with instruments that can gap overnight in an ever more 24/5(7) market place. Markets trade around the clock - and you cannot just depend on a GTC order on US stock security-baesd ETFs to be safe. I also haven't seen a single mention of ever using the underlying to hedge any delta risk.
    2. You're severely underestimating the potential risk at play due to an inherently over-optimistic view of the future. This will kill you. You must assume that it is not totally guaranteed things will continue to function smoothly or even semi-smoothly.
    3. You must be ready to take some shit from others on your strategy if it's questionable - and the fact that you're bailing so quickly doesn't sound like there's a whole lot of resilience behind it.
     
    #184     Jun 4, 2016
    d08 and Surprise like this.
  5. CBC

    CBC

    Bobby every option trader on here knows about this strategy. Infact when I started learning about options it was a strategy I reazlied straight away. But I didn't like it because if something serious happens then I will lose all my $$ / get margined out of my trades.

    What people are advising to you on this thread is probably the best information you can get. I've been trading about 5 years and I wished I had of learnt about hedging my trades a long time ago. But you got this information here on this thread.
     
    Last edited: Jun 4, 2016
    #185     Jun 4, 2016
  6. Hittfeld

    Hittfeld

    Taleb? Good man, good lecturer, good fund manager. Oh, what were the results of the funds he ran?
     
    #186     Jun 4, 2016
  7. F_488

    F_488

    Bobby I think you should continue the Journal. I wouldn't look at the negative posts as negative, I would look at them as positive. You have received some excellent info from some knowledgeable traders on this thread. I think if you continue your experiment you will be a better trader for it, in the long run.
     
    #187     Jun 4, 2016
  8. IIRC 1 Billion during the subprime crisis
     
    #188     Jun 4, 2016
  9. newwurldmn

    newwurldmn

    Work at McDonald's.
     
    #189     Jun 4, 2016
  10. Bobby, take the advice. Maverick got it right. Theta is an illusion. It's sexy, sounds good to be earnt, but it's an illusion. It's always coupled with gamma. And gamma hits the fan.
     
    #190     Jun 4, 2016