Recent content by Dimtrad

The fair value is easy to calculate, I simply take the difference between official closing prices. For example I want to sell ES 1310/1290 spread the official put closing prices will be 6.5/4.5 (just an example I don't have the actual prices in front of me) then the fair value for the spread is...

In the initial post and replies to the questions I have outlined the basics of the strategy. In this post I would like to highlight some of the key points of success and outline a strategy for anyone wanting to try it out. The key aspects of the successful option spreads selling: 1)...

Hi meanreversion, Trying to leg into the spread is a fool's errand, chances are that you will get a worse execution as compared to selling a spread. Think about options market as not one but two separate markets - straight options and spreads. In fact, the only reason why you can buy/sell a...

Hi Rsh01, 1) Do you adjust IV to this time period? No, not at all. For some strange reason people always want to have a precise set of rules and indicators to trade something that is imprecise to begin with. There are plenty of posts on this an other forums where you can find someone posting...

The initial risk/reward when I enter the trade is around 1:10, so for $100 in premium I am initially risking the maximum drawdown of $1000. It is not easy to answer on where DAX has to be for me to close the trade and the loss that I will be taking as it depends on the amount of time that is...

Any instrument would do

I will accept a 10% drawdown the timescale should allow for 1 trade a day may be every two days. The strategy preferably should be fully automated or at least generate trade signals.

Not sure if I understand your question - in short no, the Forex strategy has nothing to do with options. I just need to rack up trades and thought that Forex would be the easiest market to do so.

I am not against making some profit, and I am not looking at the Islamic account scams and any other scams. What I am after is some simple fully automated system which either can break even or generate some small profits. I can design the system myself, however it will take around one month of...

I use implied volatility, but to be honest it does not really matter too much as the system allows for the big margin of error. For example at the moment DAX is at 7200 my bet is that it won't go higher than 7700 in the next month or so. This trade is considered higher risk than normal as DAX...

No, the results are very consistent the whole point of this strategy is to generate consistent profits. The reason for this post is to discuss the strategy with people who are trading something similar, there is always something new to learn. I have been quite successful with my previous trading...

Well, nothing sofisticated here I calculate the highest point that the price can reach given the current volatility of the instrument and put my trades above that point. I also look at the overall market and make a judgement call. For example I would look at the live cattle futures and make a...

I agree, it is pretty simple to design an indicator with 90% strike rate, for example 200 days or any number of days moving average. When the price goes below buy and sell when it recovers, the strike rate is phenomenal on indices, the drawdowns too. The problem with most indicators is that they...

This is actually a good idea, I did not though about that. No, I am not looking to package and sell the system, there are certain tax advantages that can be gained by racking up trades.

There is a very simple test - show me an indicator or a series of indicators that do work. Buy working I mean a statistically valid predictive capability of lets say 60%. In most cases when someone claims that indicators work the reality is that the person either uses his/her experience to...