Atticus, you truly crack me up. If you can't understand the beginnings of this trading strategy, well, ...I can't dumb it down any further. Any relevant message you are trying to get across gets lost in the vitriol. I don't have an advanced finance degree. The concept of my trading is pretty clear to me, I guess I just can't explain it to an Elite Trader. The fact that none of you can grasp even the beginnings of this strategy tells me I might be on to something. I really don't think I've said anything misleading and I'll take my book talk off forum. If you are misled, read it again. And if you are just pulling my leg about having no idea what I am talking about, then the joke's on me. Yes, SP500 +3200bps.
Fair enough. I know it will take time. I'm not expecting anything in the near future. Perhaps take a second every month a check on my progress. 1 year is not statistically significant. On the other hand I think the analysis could be sped up a bit due to the fact I've got 240 data points per year. It's on it's way to becoming statistically significant.
Oh I am sorry I was still waiting on you answering how you calculate market sentiment which people asked to hear 15 or more pages ago. I see you changed your website to get rid of some of those inconsistencies, I guess thatâs a good thing.
I still don't know what inconsistencies to which you refer. You found a few typos but what else was there? Look, we couldn't get past the basic idea of "the Number" and I thoroughly confused everyone by stating relative returns. I just can't see my ideas on sentiment going anywhere.
Its not that one year is statistically insignificant its that absolutely zero substantiation of your record makes it insignificant. I donât need to defend Atti, even with my 20 years in the business and as well as I know options I would not be so inclined to imply that he needs you to dumb down a strategy. You simply have not given anything but a cursory indication of your strategy. You say you trade calls and puts on the SPY and sometimes use double diagonals and ICâs. Yet somehow to you it was significant that a particular put you bought yesterday was ½ the price of the previous day. That tidbit alone screams that you donât understand options theory and pricing and why that puts price is what it is or the associated risks in options. In closing to imply youâve given enough information about your mystery system is silly in the context of building an options position. Simply saying you time the market with calls or puts is not a âsystemâ. Given you didnât have a grasp on the accepted risk parameters and their definitions, I would hardly go around saying others cant understand things.
Thats the point people were making. You say its part of your method yet you cant define it. Most people in the industry would then classify that as a hunch or a guess or a gut feeling, and we all know those three along with wishing, hoping, prayer, and bullchitting are the most popular strategies on the internet.
Just to be clear you have not confused anyone with your relative returns, we are just surprised you would use an approach so different than how the whole industry measures returns versus an index. I guarantee yuo there would have been no confusion if you followed the industry convetion of: My portfolio has returned ____% since 8/14/07 while in the same period the SP500 has returned ____%. I bet you soup to nuts 100 industry professionals you might want to interview with would want it stated like this which is the real way to show performance.