Keep posting those setups, IV. I have transitioned to FX for all exotics trading. I still maintain pro equity accounts to trade vanilla positions. All further exotic trades will be based in FX. I am currently long the GBP/JPY carry trade and short the 7d touch at 214.20. The arguments for making the switch: 1) Relative anonymity -- dealers offer screen-trading for most of the positions I will undertake. 2) Marketmakers -- more of 'em, " ... ". 3) Liquidity/slippage -- edge-loss much less of an issue in FX. 4) Access -- true 24h screen trading and 1corr for hedging spot against options. No haircut issues on the PB-level. The only significant arguments against fx is the lack of a significant vol skew and the lack of variance. I will post positions once I roll/expire the GBP and the SPX.
I rember this being the reason that you were going to stay away from fx for awhile. Have implied vols picked up, or are you going to be looking at more touches as opposed to no touches?
The +carry pairs don't react to anything but changes in FI rates and carry-flows, and are fairly technical in nature. I am far more vol-dependent in equities and want to remove some vol-risk from the equation. I will be trading touches outright and as long synth straddles as well.
thanks , B. Closed half with 45% profit on vols ratio return to the mean , will update the rest at exp.
Good job. Your 1175 Bull No Touch nearly 100 handles away should be safe too. $$$ [EDIT: I see you covered that a while back!....it's all good]
riskarb nice job !!! I wish a had a clue what the heck you where doing though LOL Don't sweat it I won't ask you to explain, I've been following the journal for a few weeks and VERY slowly figuring it out.