Karen the Supertrader - TastyTrade Hybrid Experiment

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

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  1. DTB2


    That he's going to (already has) take a lot of people down.
    #791     Sep 29, 2016
  2. And what proof do you have?
    #792     Sep 29, 2016
  3. It was garbage. He basically said all of the profitable hedge fund managers, "Market Wizard" traders and everyone else like them is lying or lucky. Only HFT and Tastytrade styles work. Yet some of the traders he wrote off have documented, multi-decade track records. Soss-boy has never even proved that he's a profitable trader.

    Maybe he should debate Jim Simons or Paul Tudor Jones next time.
    #793     Sep 29, 2016
  4. Dolemite


    But look at how many commissions he is generating for Ameritrade! Just sell a whole bunch options and let the math magic work baby!
    #794     Sep 29, 2016
  5. Yeah, I never said he didn't make a lot of money...
    #795     Sep 29, 2016
  6. Have any of you guys actually traded tastytrade style? I'm using a lot of their research to develop my strategy and it is simple and logical to me. I do notice that Tom blows off a lot of the research in making his actual trades. In many ways he is a creature of habit. Tony is much more disciplined. He often brings up what the research shows and Tom just kind of blows it off.

    If you watch Bat vs Bat, Tony uses the analyze tab and uses the delta vega ratio. I never see them using the analyze tab when Tom is in the room.

    I first learned about the importance of the analyze tab by watching Karen. She said she lives off the analyze tab. The one thing that concerned me when watching the Karen videos was that she said she didn't watch delta. Even Sosnoff was floored.

    There's no magic to my strategy. Keep things small. Never use more than 35% of my buying power. Stress the portfolio up 15%, down 20% with a 30 point increase in volatility. Maintain a theta of between 1/10 of 1% and 1/2 of 1%. Delta / vega target of -1 to - 2. Minimize gamma by taking trades off after 24 days or approximately 21 days to expiration. Manage winners at 50% of max profit. Try to limit losers to 2x the initial credit received. Understand that on average I will keep approximately 25% of the premium that I sell. I trade the market where it is and I actually don't care where it goes. If I have a drawdown of greater than 5%, I give myself permission to shut it down, liquidate all positions and wait until the dust clears. Even then, I think I will keep everything open and just continue to make my adjustments.

    In short, I have a plan and the plan is working. The experiment is a work in progress and I continue to make changes as I go along.

    Happy trading!

    #796     Sep 29, 2016
    JoeLeTrader likes this.
  7. I've made my single trade for the day. I sold the /ES Nov 16 wk 3 2110 put. I entered a GTC order to close it at 50% profit and I set an alert to alert me if it gets to a loss of 2x the initial credit received. I'm done on this particular account for the day unless any of my GTC orders trigger or any of my alerts get triggered.

    What I like about my strategy is it takes no more than about 5 minutes a day to place my trades including an analysis of my overall portfolio. Then it probably takes me about 10 minutes to update my spreadsheet and make sure all of my trades are entered correctly.

    Now, I don't want to criticize anybody else's strategy. But, I cannot imagine watching charts and waiting for setups all day. That would drive me insane. I do believe that some of you might find an edge in technical analysis, but I have zero interest in being glued to the markets all day long. I'm not sure how you do it.

    As for fundamental analysis, is there anything more boring? I also can't imagine filling my days researching companies and their financials.

    I like the simplicity of managing a portfolio based on probabilities and the Greeks. Again, I'm not throwing off on anyone else's strategy. It's just not for me.
    #797     Sep 29, 2016
  8. DTB2


    Well, start with his handpicked "students". Case and Katie reloaded a couple of times. Then they gave up on Case and Katie was down money the last time I looked. I don't think they show her P/L anymore but I could be wrong about that.
    #798     Sep 29, 2016
  9. I am also his student and I'm doing quite well. I have been his student for about five years. He answers all of my questions. I've met the guy and talked with him. I am the captain of the University of Alabama team in the ThinkorSwim collegiate challenge and he has even offered me advice on doing well in that competition. He's never charged me a dime or asked for anything.

    His team puts together excellent research and they answer all of my questions. My strategy is built on his team's research. It is playing out before your very eyes. Maybe instead of criticizing the guy, why don't you just shoot him an email and ask a few questions. very approachable and he's made a huge difference in my life. He's certainly not perfect and there are many things on which I disagree with him. He could be off at the beach counting his money and telling me to screw off, but Tom takes time to help me.

    It was me that first let Tom know about Karen's troubles. I have his email response thanking me for letting him know. It's okay to be skeptical. In fact we should be skeptical of anything that anyone says. I was the biggest skeptic of Tastytrade. I toyed around with their ideas for a long time before I actually put them into practice and tracked each trade.

    This very experiment is based on their research and continues to evolve based on their new research coming out. At this point, I have all but abandoned Karen's strategy. The only thing that is still Karenesque is that I'm selling around the S&P 500.

    For those of you who continue to criticize Sosnoff and his team, I must ask you a question. Have you actually watched Tastytrade over any significant length of time? If not, let me give you a recommendation.

    Watch every Market Measure segment. Watch every Options Jive and Best Practices segment. Watch the last half of the Confirm and Send segment. I would also watch Bat v. Bat because Tony looks at Baby Bat's greeks most days and always talks about the delta/vega ratio, though the trades that they undertake are of no use to my strategy.

    90% of the stuff on Tastytrade does not have any bearing on my strategy. But oh that 10% is well worth sifting through. The other 90% is not bad, it just doesn't pertain to my strategy. I strongly encourage you guys to give Tastytrade a chance. There's gold in them there hills if you're willing to go search for it.
    #799     Sep 29, 2016
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  10. DTB2


    Oh, I've watched, actually longer than you have. We've exchanged emails but not in the wide eyed way that you have perhaps. I asked tough questions, got less than good answers. Then I asked tougher questions and the answer was "maybe this isn't for you."

    I ended up watching C&S for entertainment and found a nugget yesterday. Would you believe that yesterday was the 1st time Sossy admitted to taking a loss scalping? Yup, 1st time. Normally all losing scalps become part of the core position, until yesterday. And he said he takes some very big losses.

    Give it some time and you'll see. After that I wish you great trading success.
    #800     Sep 29, 2016
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