Is there a preferred strategy or setup to make a small percentage from a large account? If someone had $500,000 or $1,000,000, generating 1% every couple weeks or even a month is real money. Obviously buying puts or calls is a high risk/reward approach. Cash-secured put can be like picking up pennies in front of a steamroller, of course. Would something like calendar spreads be advisable? Just looking for lower percentage return ideas on a large sum of capital (if they exist, at all).
1. You always need to make good r/r plays.... no need to have all of your money committed to a position. 2. "Cash secured puts" are NOT like "picking up pennies in front of a steam roller"... you've confused that with "writing naked puts*". Bottom Line... learn Price TA and always trade with stops.... risk is always low and r/r is always favorable. *writing naked options is ALWAYS dangerous... regardless of smart you think you are.
Forget about ,, a percentage per week ''. Those who know such things have no point of sharing it in a public place and even if they did, - 99% of the people wouldn't get it and it would make things only worse, once they tried to apply it. Usually that's a scammers game. ,,1% per day''. ,,1% per week''
Maybe I should have rephrased it. I was just thinking about a small percentage on a trade using a large account. Disregard the time period.
Traders like to hope they might find the "Holy Grail"... the money machine... where they can turn on the computer in the morning, go play golf, and come home in the afternoon to pick up the money and take it to the bank.
That's was not my intent. My main query regards strategies to generate small percentage returns from larger account. Ignore time period I originally posted.
To make a small return on a large account, you need to do conservative things... like buying T-Bills, writing covered calls, or holding dividend-paying issues. Of course the latter 2 require taking market risk.
In Lithuanian trading forum, they call those : ,,The beach bot'', where you leave it on before trading session & hopefully, sip Piña colada all day long without doing anything.
The risk free rate is currently a bit over 4%, factoring in the equity risk premium you can expect 7-8% from equities, over the long run. If you want substantially more than that, or even if you want the equity or HY returns without the vol or tail risk, you need a trading edge.