Ok I'll bite. Sweet Bobby, in the 150 days from May 2018 the S&P lost 45% of it's value. At current prices a 45% drop in the S&P would put the price at ~1530. Can you please calculate what your loss would be at an S&P price of 1530 given your current strategy?
It would not be a loss. It would be a huge gain. I will calculate it when I’m in front of my computer.
I don't remember a single fund in recent history that went under because of gap risk but a gross mismanagement of emotions and arrogance. Add to the mix sometimes ill intent to deceive.
So with that last line there, you are effectively saying that you will never lose more than your account value. I find this very difficult to believe. So your statement is contrarian to every single risk disclaimer out there in the world of trading. Can you explain in detail how you manage this? So a hedge provides income, your original position provides income, and you cannot blow out your account. Sounds like holy grail stuff.
I can certainly lose if the market grinds slowly down. I. That case, I have plenty of time to adjust my positions and the losses are manageable. I pray for a crash of 20% and a huge spike in volatility. That’s when the big bucks fly my way.
They must have been relatively small funds I reckon. Even FXCM did not blow up due to gap risk but due to gross mismanagement in that they allowed clients to continue to speculate in this cross at 100:1 or sometimes even 200:1 leverage even after the writing was on the wall.
Yes, I have access to my laptop. As you can see, I am super happy if the market drops to 1,530! This is a risk profile of my entire portfolio. I think it is now evident that Sweet Bobby has indeed improved upon Karen's strategy. Karen, please contact me please. How does Daddy do it?