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I opened the same position Ron but added 1 small tail hedge for $600 on SPY. It won't affect margin on a price drop or volatility spike but will hedge the $ loss. Also, since it's on SPY and not /ES my commissions are far lower. Because of the low volatility I'm getting hammered on commissions and fees for the volume of contracts I have to open.
Not really, but I do try to sell on Thursday before the weekend price erosion starts kicking in.
I have tried watching the chart and timing it to sell when prices start rising after a dip. But the truth is I have no idea where futures will be in 10 minutes or 2 hours from now.
What stopped you from using the -1/+1 spread highlighted in option 3 on TFOpts chart above? Was it as simple as the Average ROI or something else? I ask given the max MM is substantially lower than the 2/3 spread.
Higher ROI. I'm not sure if you change the Excess Factor from 4 to 5 for Run 1 how that would affect ROI and Max MM. Maybe @TFOpts can answer that for us.
I believe that if you lower the Excess Factor from 6 for Run 3 your Max MM would be over 100%.
EDIT I also like the lower delta on the short. I like the short being further OTM.