Welcome to my Shit Show

Discussion in 'Journals' started by Matt_K74, Jul 5, 2022.

  1. TheDawn

    TheDawn

    Ok so it looks like you need to re-assess the profitability of your trading system to determine how well it works in all market environments. The market environment is dynamic and changes from time to time and not all trading systems work equally well. And from what you find out, you may need to go back to the drawing board to redesign a new trading system or modify the existing one to accommodate the current market situation.
     
    #51     Jul 6, 2022
  2. Matt_K74

    Matt_K74

    Too long Emerging Markets and Metals :mad:
    Ended down -2843 even though market was up.

    Pairs trades lost -1827, option selling lost the rest.
    Some of my datafeeds seem to be in over their head as well - my daily theta went from 700s to 1400s - had that never happen before.
    Interestingly my available margin went up 10%
     
    #52     Jul 6, 2022
  3. Handle123

    Handle123

    Six of my best systems sell premium ATM, being decent at charting helps much. I backtested the "Wheel", wow, when you lose you really get clubberred. Way too much risk and too little profit for me.

    All the programmers I have met iny past were horrible when they tried trading. It like comparing a Corvette to a skateboard, the latter you need much skills to doing dozens of moves and many can eventually do, but a Corvette, few can do most of same moves as skateboarder.

    There are many indicators in TA, how many years will it take to remove indicator and see in your mind and price. That's when you know you have gotten good.
     
    #53     Jul 6, 2022
  4. taowave

    taowave

    Whats the notional of your short puts + long stock reative to your capital??
     
    #54     Jul 6, 2022
    Matt_K74 likes this.
  5. Nothing better than a completely bare chart IMO.

    upload_2022-7-6_19-29-40.png
     
    #55     Jul 6, 2022
  6. Matt_K74

    Matt_K74

    ~ 1.2 M in trading accounts that are ~70% margined
    I'm long ~ 2M in notional stocks
    The 2M is 50% of my total net worth and would be ~ 90% if my liquid net worth
     
    #56     Jul 6, 2022
    taowave likes this.
  7. taowave

    taowave

    Just to be sure..

    If you were assigned on every short put and you added in your long stock,you would be long 2 mil in notional??





     
    #57     Jul 6, 2022
  8. Matt_K74

    Matt_K74

    Net 2 mill.
    So the wheel would hold 2M in long stock if everything would get assigned.
    I would still have 375.000 in long stock from the pairs trades as well as 375.000 in short stock for the pairs trades.
     
    #58     Jul 6, 2022
  9. Matt_K74

    Matt_K74

    Super lucky trading day - finished up $11492 (5th best P&L day of the year).
    Everything worked - market moved my way and volatility came in.
    I also dodged a bullet in $SGEN - was short in a pairs trade and MERCK announced they may acquire them - somehow the stock dropped though after the gap up and I got out at a reasonable price and closed the pair.
     
    #59     Jul 7, 2022
  10. taowave

    taowave

    Nice job,but not suprising...If Im reading you right,you are net long apx 400,000 $delta in your option book,and short theta/vol...

    What duration options are you short? From your title,I assume 1 month and in?

    How did the current max drawdown compare to the Covid meltdown?
     
    #60     Jul 7, 2022