Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
The reason why I exit somewhere around 200 % (= loss of 100 %) is simply that my sleep gets worse when a large position has increased in value by several hundred percent. And we have such events, eg. in August 2015 or in early 2016.
I do not think it is a good idea to exit at exactly 200 %. I prefer defining a stop in the chart. Currently my exit point for the ES puts is on a close below 2320 (March low). And I prefer to include fundamentals in my considerations regarding exiting - more for other commodities than for the indices. Once in a while I get out with a small profit or loss, because fundamentals were not the same as when I had entered the trade.
But I admit that it is not possible to backtest such concept.
Ron, how do you exit the 2 long - 1 short spread? Currently my position
short one ES July EOM put, strike 2025. Entry 5.00
and, to manage risk:
long two ES July EOM puts, strike 1790. Entry 1.8
According to that pdf on the CME site linked to earlier in the thread, the short position is delta 5, while the long position is delta 1.5
is at, respective to the premium at time of entry, 47% loss ($85) on 2 longs, 32% gain ($80) on the one short. Do you exit once the short-put position has lost 50% of premium, regardless of how the 2 longs are faring?
Is there anyplace where there is information of the dates of release of each important report. Or do you have to monitor it asset by asset. How far in advance are these information released?
Thanks much for sharing your trading philosophy. I have a few questions.
1. What about your profitable trades? Do you have a exit strategy for profitable trades, say at 10% or 20%?
2. On your strategy of rolling out at the original size of the trade, as you pointed out, that means if you roll at 200%, the best is likely a break-even or more likely a small loss. That would increase the loss rate.
Using this strategy of rolling at the original size, what % of winning trades do you have as a % of total trades?
Most of the people writing these stories about the VIX fail to make a distinction between VIXMO and the new VIX. There is 0.8 of difference between these.