Cashmaster PIE

This is a discussion on Cashmaster PIE within the First Steps forums, part of the Reception category; Originally Posted by simonh88 Hi Daveyboy, I can understand yours and your wife's concern that it's not just another dodgy ...

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Old Jun 24, 2014, 8:28am   #33
Joined Feb 2012
daveyboy22 started this thread
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Originally Posted by simonh88 View Post
Hi Daveyboy,
I can understand yours and your wife's concern that it's not just another dodgy scheme.

Profits are subject to capital gains tax, but only on profits above £10,900 p.a. for an individual. So in theory if you started getting above those profit levels, you could mitigate your tax burden by opening 1 account in your name and another in your wife's name so that would be nearly £22k tax free p.a.! This would equate to having approx £130k invested in the scheme.

Once the threshold is reached tax becomes payable at a rate of either 18% or 28% depending upon current salary. Basic band is £32k ish, so with personal of allowances of £10k approx, your 18% rate is about £42. If your salary is £30k and profits £15k, you would pay 18% on £12k and 28% on £3k. Hope that makes sense!

I expect to make a profit (tax free!) of about £8-£8.5k this year and I now trade with a bank of £50k. I will explore at some point the option of running the scheme with the spreadbetting firm and try to build up my bank with them and as there are no capital gains tax to pay with this method as you never actually own the assets you are trading on.

It's not going to make you rich overnight, but if your are a naturally cautious person as I am, you will be well satisfied with your returns. If you are someone who always wants a little bit more, then your risk will need to be greater in order to return the 20%+. Personally with interest rates being under 2%, anything above 10% and I would be very happy with, but Iím comfortable with the level of my risk, meaning I can aim for the 14-17% range.

As i mentioned before I have had 1 losing trade which made me a loss for the month of £252, with other trades offsetting the loss.

If you would like to discuss all this via email/phone, feel free to get in touch directly.

And before anyone says, I won't earn any commission whatsoever, I'm just more than happy to help mentor someone and help them achieve financial independence and maybe they or someone else might have a good idea for improving the strategy which I hadnít seen.

I'm assuming you've seen the P.I.E scheme being promoted on the Cash-master blog and watched the videos? and without knowing the individuals concerned, I have no doubt whatsover that they are the real deal.

Cheers
simon
Simon,
Thanks SO much for your reply.
I have sent you a private message - I hope that you can reply.
Many thanks.
Daveyboy.
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Old Jul 30, 2014, 10:15am   #34
Joined May 2008
Daveyboy, have you signed up yet?

Simon, how's it been these last couple of months and what is your current annualised return for this year?
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Old Jul 30, 2014, 4:33pm   #35
Joined Feb 2012
daveyboy22 started this thread
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Originally Posted by Porkpie View Post
Daveyboy, have you signed up yet?

Simon, how's it been these last couple of months and what is your current annualised return for this year?
Porkpie,

No I have not yet - still deciding - complicated by the fact that I may have to use my Pension Fund - in fact very complicated!!
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Old Aug 16, 2014, 10:46pm   #36
Joined Aug 2011
Hi PP,

It's going very well, for me. It's not a get rich scheme, just something nice and steady which I'm more than pleased with.

I've just finished trading for August prior to my hols. Last few months results:

May 14 - 1.68%
Jun 14 - 1.49%
Jul 14 - 1.16%
Aug 14 - 1.31%

Currently averaging 1.45% pm which equates to 17.5% annually

Regards
simon
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Old Aug 28, 2014, 10:01am   #37
Joined May 2008
Not bad at all Simon. There are several strategies. I think PIE is not dissimilar to trading Iron Condors by the sounds of it. You can profit from the market regardless of direction it goes but you make the most money when price is range bound and close to the price at which you entered. The further out price expires the less money you make and you lose money beyond the strike price. Presumably this is when PIE puts in its hedge strategy so you don't lose any money and even make money once price continues in a trend direction.
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Old Aug 30, 2014, 12:53pm   #38
Joined May 2008
Hedging Iron Condors

Here's an article about hedging iron condors:
http://www.investopedia.com/articles...-calendars.asp

If anyone can explain in English, I would be very grateful
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Old May 13, 2015, 1:47pm   #39
Joined Sep 2004
Simon if you are still listening...

What will happen if we have another GFC, and the market moves up or down multiple deviations from normal. In those cases will the option trades still be hedged? Or is there a chance a loss can occur?

I have seen these types of trading systems before, that make many small incremental profits, but when a parabolic movement comes you get wiped out.

In parabolic movements, you cannot get a fill for your stop, so the normal safety net is thrown out. Or is the hedge purchased beforehand?
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Old May 14, 2015, 9:09am   #40
Joined May 2008
Agishos, market conditions at the moment make the method a lot more vulnerable to the scenario you speak of so one cannot follow the original method.
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