Long-scalping equity options against time decay and market drift

Discussion in 'Journals' started by fullautotrading, Jan 31, 2022.

Thread Status:
Not open for further replies.
  1. I have already said many times that everything here is dynamic.

    Note that even the long legs are "scalping" (by scalping I mean it in a rather "general" sense, simply as capturing fluctuations, not necessarily "small", the size is an algorithm parameter).

    In essence, we have both long and short legs which are continuously scalping price fluctuations, while balancing as much as possible the two opposite sides.

    I will show for instance here one occurrence where even a long layer, which is supposed to be "protective", and therefore most of the time "losing" all the way down to expiration, actually can turn out to be profitable.

    Look here:

    upload_2023-8-23_23-1-42.png

    ES FOP 20240216 4400 P CME 50 E-mini S&P 500 [EW3G4 P4400, 609545019, mult: 50]

    Not only did it dampen the DD, with a rather high delta (35%) but now it's even bringing a profit.

    Isn't that overwhelmingly beautiful? :)
     
    Last edited: Aug 23, 2023
    #541     Aug 23, 2023
  2. destriero

    destriero

    lol you're short over 300 puts for nickels. Just brilliant. So jelly, bc it obviously takes an inordinate amount of skill to short naked puts. Some day I'll be ready to short stops on sim!
     
    #542     Aug 23, 2023
  3. Oh, look, the anonymous cowardly slanderer retard destriero is still here to entertain us.

    It's so refreshing to hear the loud bray of the donkey when you just get up :)

    Are you still shivering like a little girl behind your laptop keyboard ?

    Yes, cowardly donkey who thinks to be a destriero :), I am trading on sims accounts and I am homeless. You are so smart! Well, not everybody can be as intelligent as you. Are you still looking desperately for my name at some of the Universities in Rome? Oh, and you could not find it. Oh, what a scammer!

    And look, he is accepting voluntary donations from people who are making big $$$ with his platform and like to fund a network of new social media.
    Oh, that is really bad, immediately call 911 and put the scammer in jail because he is bankrupting the poor hedge funds! :)

    Wow, look: the bright donkey knows how to count up to 300. This must be a real phenomenon because he can also mention gamma. I never heard of a donkey who could mention gamma. Well, that is good, but what about going to learn what a second derivative is and about the concept of limit, so that next time I ask perhaps you can bray something in regard to that too when I ask?

    The cowardly retard could not go to school? The poor retard could not make his own website and his own projects? He could not learn how to put together 2 lines of code. Poor thing, he was too busy washing cars and playing with his knives. :)

    Be careful, my poor retarded slandered without a name (this cowardly "Male, from Oahu" has to hide cowardly his identity for his idiotic slanders), because if I get tired of trolling with you and feeding ET, with all the idiotic stuff you have written here mentioning real names, I might even bother to sue your ass), and with that 25K account of yours, feed my cat for a week :)). Steph and the kids may not like the homeless lifestyle as I do and Skid Row is not that safe :)

    How do you render the bray of the donkey in English? Ours does something like this: hio hio hio, I am the retarded donkey destriero. Let's place another of those riskless bets! (well yes, this Italian donkey learned a bit of English)

    Btw what is the definition of "nickel" I can't remember is $24 dollars, or $127? I have to look it up... And what is our multiplier and our deltas... have to look it up...

    upload_2023-8-24_10-58-2.png


    upload_2023-8-24_11-2-38.png


    This poor cowardly retard donkey does not even bother reading before throwing his idiotic slanders. He just throws random slanders, just like he throws his random gambles, hoping to get at least one right occasionally :)

    What was the first one you made? Ah, yes, you said I was buying at bid and selling at ask. LOL, what a genius! Then what else did you invent? Ah, yes, that I am shorting penny puts. Sorry, you still did not get it right. Retry the bet. It's a long/short game and it's not a penny. Try better, retarded cowardly donkey!

    If I were you, I would contact Wikipedia and make sure they make a reference to your incredible journals:

    https://www.elitetrader.com/et/threads/dests-overwrite-journal.359397/page-56

    under the entries of mental retardation and narcissistic personality disorder (and cowardice too, of course).

    Oh, you had to shut it down. How come? Poor thing! The bets did not turn out that well?
     
    Last edited: Aug 24, 2023
    #543     Aug 24, 2023
  4. destriero

    destriero

    Chef,

    I made 14 post-split on AMC conversion arb. Real, not sim. Sell some more puts! They're bid!
     
    #544     Aug 24, 2023
  5. > I made 14 post-split on AMC conversion arb.

    Ok Donkey, you are the man! Call me back when you get some funds to trade, after feeding my cat :)

    upload_2023-8-24_18-55-40.jpeg


    Back to us...

    Always remember that your systematic profit, if any, can only be the consequent reward of some form of systematic risk you take on capital that you have.

    Our job as trading algorithm developers is to make this risk as close to being acceptable (compared to the reward) as possible for any investor.

    When it becomes more probable that you have a heart attack within the week or that you be stricken by lightning, rather you get into serious trouble while making decent returns, then you can start to think you are closer to your goal.

    There is no such thing as "no-risk trades". No risk => no consistent profit, in the long term.

    Otherwise, we would be replacing the FED, just printing $$$ :)
    No free lunches, sorry!

    Note also how capital is crucial, at least in my approach. In relative terms, as said also on another thread, we can produce a much better return with larger capital. If, for instance, with a capital of 2MM, one gets 20%, then, on 10MM, one can easily get 25% or more.

    That happens for various reasons: we can structure better hedging and also ride much better the market fluctuation and recover the unfavorable orders. Especially if there is some large decline and recovery, we can make extraordinary extra profits.

    Here is a comparison of my 2MM cap illustration with another account of a new "friend" of mine who recently started (223 days) with 1MM (he is a large investor, anyway, just starting gradually with peanuts, to get his feet wet with the application):

    upload_2023-8-24_16-29-4.png

    Mine with 2MM right now (570 days)

    upload_2023-8-24_16-31-11.png

    Note also that I am using only 37% of the funds while the 1MM account is already struggling with margins and continuously shutting down profitable positions (mostly the unfavorable orders recovery) that otherwise would be let run if more funds were available, resulting in a much greater return relative to capital.
     
    #545     Aug 24, 2023
  6. destriero

    destriero

    But you're trading sim.
     
    #546     Aug 24, 2023
  7. Sure Donkey, (especially when it's time to pay taxes) we always trade Sims. Only sims :)

    Good try!

    [​IMG]
     
    #547     Aug 24, 2023
  8. destriero

    destriero


    Dude, you accept illegal donations via PayPal for your fake short put thing. Livin' the life, Bro! Sim-away!
     
    #548     Aug 24, 2023
  9. Sure Donkey. Did you not know that donations are illegal?

    PayPal ? LOL, I do not even have a PayPal account, and, even if I had one, it would be useless for these amounts.

    You are a real natural retard. Considering your mental infirmity, I will refrain from suing you, if you promise to spend the 25K to buy something for Steph and the kids and use the rest for a good shrink :)

    upload_2023-8-24_19-28-21.jpeg
     
    Last edited: Aug 24, 2023
    #549     Aug 24, 2023
  10. destriero

    destriero

    What do they pay you with? Euro Disney coupons?
     
    #550     Aug 24, 2023
Thread Status:
Not open for further replies.