Full time trading does it really pay

HowardCohodas · Jan 15, 2011, 10:33pm

Quote:

Originally Posted by brettus

Doesn't he do like 1 trade a month aswell? I think even if he was trading 10 times a day i wouldn't call it a track record.

There is a record in this forum of my performance in 5.5 months. A few highlights follow.

View: Performance statistics as spreads (not Iron Condors)

PHP Code:

  1/15/11

 
Total closed spreads:       62

Profitable spreads:         58

Percentage Profitable:      94%

Average profit per spread: 6.1%

Unprofitable spreads:        4

Average loss per spread:   9.3%

 
How were spreads closed?

Rolled spreads:             21

Exited spreads (last day):   9

Expired spreads:            32

Another view: Month on month return in account

PHP Code:

  Aug  7.4%

Sep  7.7%

Oct 11.3%

Nov 11.2%

Dec 15.1%

You may or you may not consider this a "track record," as you like.

Pazienza · Jan 15, 2011, 10:38pm

Howie, I thought you were going to set up a closed thread. Do that and you can pimp your garbage based on your silly fantasies in peace without interruption.

Or are you here to tell more lies about our little exchanges?

That is, unless you're confused about what happened - let me know and I'll remind you again.

Or perhaps it is my "communication skills" letting me down

?

Blah, blah, blah - a conclusive argument in your book

.

brettus · Jan 15, 2011, 10:49pm

Quote:

Originally Posted by HowardCohodas

There is a record in this forum of my performance in 5.5 months. A few highlights follow.

View: Performance statistics as spreads (not Iron Condors)

PHP Code:

  1/15/11

 
Total closed spreads:       62

Profitable spreads:         58

Percentage Profitable:      94%

Average profit per spread: 6.1%

Unprofitable spreads:        4

Average loss per spread:   9.3%

 
How were spreads closed?

Rolled spreads:             21

Exited spreads (last day):   9

Expired spreads:            32

Another view: Month on month return in account

PHP Code:

  Aug  7.4%

Sep  7.7%

Oct 11.3%

Nov 11.2%

Dec 15.1%

You may or you may not consider this a "track record," as you like.

You have 58 trades with an average profit of 6.1% and 4 trades with an average loss of 9.3%. So 316%. Whats 6.1%? Of your account? Of the stock value?

I can't really knock that. I still think with the number of trades you are doing, you need at least a year. The market has suited your strategy recently aswell.

Pazienza · Jan 15, 2011, 10:56pm

Quote:

Originally Posted by brettus

You have 58 trades with an average profit of 6.1% and 4 trades with an average loss of 9.3%. So 316%. Whats 6.1%? Of your account? Of the stock value?

Don't try getting into that - the debate has been rumbling on for years on his thread. But no, it's not a percentage of account value.

I can't really knock that. I still think with the number of trades you are doing, you need at least a year. The market has suited your strategy recently aswell.

And don't tell him that either, he doesn't like it. See his thread for a full and somewhat gruesome expose from people who know a little more about options than Howie does.

.

HowardCohodas · Jan 16, 2011, 4:02am

Quote:

Originally Posted by brettus

You have 58 trades with an average profit of 6.1% and 4 trades with an average loss of 9.3%. So 316%. Whats 6.1%? Of your account? Of the stock value?

I can't really knock that. I still think with the number of trades you are doing, you need at least a year. The market has suited your strategy recently aswell.

6.1% of capital at risk.

During the five months since I started trading credit spreads with money, there has been one down month, one sideways month and three up months. There was no discernible correlation in performance related to this aspect of the market. Low volatility has characterized all five months. The tool I use for choosing the short strike for my spread has a volatility component. It "should" adjust for higher volatility regimes, but that remains untested by trading it with money.

Back-testing and paper trading "suggest" a robust strategy for varied market conditions, but only live action trading over time will be convincing. The only way to get there from here is to continue trading with this strategy. How long is sufficient to convince someone of the validity of the strategy is in the eyes of the beholder, as it should be.

the hare · Jan 16, 2011, 4:29am

Quote:

Originally Posted by HowardCohodas

6.1% of capital at risk.

With those kinds of paltry rewards based on the risk, you should seriously consider a post office savings account.

first class lulz though.

HowardCohodas · Jan 16, 2011, 4:36am

Quote:

Originally Posted by the hare

With those kinds of paltry rewards based on the risk, you should seriously consider a post office savings account.

first class lulz though.

That's 6.1% for the life of the trade which ranges from a couple of days up to 60 days. Otherwise it is not possible to have my account increase from 7% to 15% per month.

You have given me an idea of another statistic to provide in my report. Average lifetime of a spread. Thanks.

new_trader · Jan 16, 2011, 4:38am

Quote:

Originally Posted by fayalac

You main problem is that you sell when you "think" it will go down, the rigth question must be what makes you think it will go down when it goes up and viceversa, maybe you are not using the rigth indicators or maybe you are not interpretting your indicators information at the rigth way.
By the other hand, these is a market, some will win, some will lose.

I agree. You should be using the 'UP' indicator (green one) when you are thinking of going long and use the 'DOWN' indicator (red one) when you think you should be going short. You can't lose!

kin ell, its not rocket science, bless

Jan 15, 2011, 10:38pm	#58
Pazienza Banned Member Since Jan 2011 2,340 Posts	Re: Full time trading does it really pay Howie, I thought you were going to set up a closed thread. Do that and you can pimp your garbage based on your silly fantasies in peace without interruption. Or are you here to tell more lies about our little exchanges? That is, unless you're confused about what happened - let me know and I'll remind you again. Or perhaps it is my "communication skills" letting me down ? Blah, blah, blah - a conclusive argument in your book . Last edited by Pazienza; Jan 15, 2011 at 10:48pm.

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