System needs input

Discussion in 'Options' started by mutluit, Nov 15, 2012.

  1. mutluit


    Ok, I have a very profitable options system, giving at least 500% p.a., with a DD of about 15%.

    My problem is this: it needs to be automated using an API like the IB API, this will take about 2 months for development and testing, ie. an investment of about 10k or so just for the automation.

    I have only a 12k cash acct. I need the above investment and some playmoney (30k or more) for a margin acct to overcome the PDT rules.

    What "options" do I have? :)
  2. Play stupid and go fish!
  3. 500% theoretical or 500% proven?
  4. kapw7


    Ask family/friends/bank manager/(ppl in public forums) for funding?
  5. I just started working on an automated platform to generate portfolio reports for my IB accounts and to run automated trading strategies. I'm planning to deploy it on the cloud, but will eventually put it on a VPS when it starts paying for itself.

    I'm planning to run options trading algos on it, but haven't come up with a 500% p.a. strategy yet :)

    We could merge our resources.
  6. sle


    Given that the OP is "proving" his system using historical vols, I would seriously question the 500% number.
  7. TskTsk


    Ah, if I had a nickle for every time I discovered a 500% pa. strategy, only to find out later that it won't work as I expected. Newbie mistake, you'll realize this very soon, trust me.
  8. You. are. delusional.

    The chance of your strat hittting those numbers, in real trading after transaction costs, is zero, give or take zero.

    Run it against the IB paper trading account for a few months and let us know how it goes. DO NOT risk real money on it.

    ET user James2hunt has posted an open source strategy container for the IB API. Use the search function to find the code repository. Its on GitHub I think. You should be able to write your strat into that software in a few days at most.
  9. ============
    Mr M
    Well i like options, i sometimes USe derivatives a lot;

    You may want to use cash some;
    i do, Cash can be better sometimes. I bought my last RE property with cash, even though most of my RE ,,i,, USe derivatives[loans]:cool:

    With only 12 k, you may want to be wise ,use use cash;
    or with 500% gains, you may want to try to get rich quick[seldom works, but keep good records,and be wise,Learn a lot.

    Mr M turtle:cool:
  10. mutluit


    Not even that :D, GBM is sufficient:

    with options that is a realistic value, but with stocks alone it would be very unrealistic indeed.
    #10     Nov 15, 2012