3309 Drysdale Ct
Edwardsville, IL 62025
Just to clarify, this PUT you're buying is out of the money?
The difference between Recession and Depression is the extent of
the job losses. The flippant answer is "when your neighbour
loses their job, it's a recession; when *you* lose your job, it's a
Canadian BackTesting Platforms?
What are those of you in Canada using as your trading platform?
Are you using a separate charting platform? Is there
anything equivalent to TradeStation (for backtesting
Currently I'm using TC2000 to chart and generate some custom
trade signals, and Scotia iTrade to manually enter those trades.
No quantitative backtesting available with this setup
Who here is Canadian?
I'm in Canada with registered accounts (RRSP, RESP, TFSA) and
really want to use something like TradeStation, but they only offer
it outside the US as a $250/month charting-only package (i.e. can't
I want to be able to:
My registered accounts (RRSP, RESP, TFSA) are currently at
Scotia iTrade but I'm finding their interface clunky and they don't
appear to have an API that would allow me to use a different
front-end to execute trades. As a compromise, I'm using
TC2000 for its charting and then manually entering trades when my
I'd really prefer a better platform though....
Anybody here have a good setup for trading within Canadian
Do you have a stats/performance chart for that sub system you
can post? It would really help with trade-sizing.
Got out of SPY PUTs about 1/2 hour ago for a +23% gain.
Admittedly I had been getting nervous as the SPY continued to
chug higher this week... as I had a 5% position...(!).
Thanks for the great systems Matt!
Any pointers for getting better fills when buying/selling
Options? Predominately using them on ETFs (GLD, TLT, XLE, etc
but sometimes on Stocks/ETFs that are 1M+ shares per day).
I'm finding that the spreads can be huge (over 10%, sometimes
over 50% !) and, even if I place a Limit Order at the mid-point
price, often the Bid will snap up to my price and the Ask will snap
It's as if the Market Maker algo is trying to lure me in to
chasing a higher and higher Ask...
Interesting. Unfortunately, this is all within Registered
accounts, so I'm not allowed to sell-to-open any options except
Covered Calls. I can only buy Calls, buy Puts, and sell
It seems like the bid/ask spread widens when I place an order,
hoping to draw me into chasing it. If I adjust my bid price
within a minute or so, the ask will continue to move up, even if
the underlying isn't moving. However, if I do nothing, the
underlying will eventually start moving the bid and ask prices in
tandem with it and if I get lucky, it will move through my bid
price and fill.
This happened to me with VNQ--an ETF that trades almost 6M
shares per day. The option bid/ask spread is currently almost
8% (1.90 - 2.05).
Even on SPY options, I regularly see a bid/ask spread of 2%
Is it because there typically is such a big potential percentage
profit to be made that the market makers know you'll tolerate more
slippage on entry/exit?
How do you folks deal with the (often huge) bid/ask spread on
Options? Sometimes the spread is as big as 40% (!), or 10% on
Options that are getting some regular volume.
Seems like they're run by an automated process that reacts to
the orders you place.
I remember Matt saying that he tries to go one tick past the
mid-range (above when buying, below when selling) but quite often
I've found that just bumps the bid (or ask) to my price and
sometimes even bumps the other end of the range away from me.
After 10-15 minutes, the range often tightens up (and may in
fact fill), but this huge uncertainty in what price I can get a
fill at really makes it tough.
Looking at the option trade list, there are two "2nd entry
Pullbacks" on 8/5/2019 but with different exit dates.
What happened there?
Hey Matt, how did you choose that particular strike price?
Looking at the 286's, the Delta is 0.82 but with only a
volume of 58 contracts today. The 287 strike has a Delta of
0.81 and a volume of 5.1k (increased liquidity?).
I hope everyone is enjoying the day off with family, friends,
and time to reflect.
I'm interested in hearing how others here balance their max
number of active positions with trade sizing/risk
Myself, I can only track 3-4 active positions on an intraday
basis, but that means either sitting mostly (80%) in cash (to keep
each position's risk contained), adding more positions (and losing
track of their sudden movements), or sizing each position large (up
to 25-35% of account in each).
How do others here balance this??
That would be super-useful to have all in one place.
Have fun--you're going to love it.
Matt: Thank you for the stop-management thoughts last week.
Got in to SE (Sea Limited) on May 16th and stopped out (right at
the LOD!) on my own $ trailing stop 3 days later.
Jumped back in that same day, and last week switched to a
stop-ratcheting approach loosely based on what you were describing,
and it has kept me in it during its recent run, despite the
Now up 20% from where I re-entered, and have an objective way to
trail up the stops so that I don't end up doing a round-trip
(currently "guaranteed" a gain of >13% ).
Thanks again for sharing your thoughts Matt! It's a big
help for us who have been finding countless ways to lose money (or
give it all back) on our own.
I agree, but it helps to see what has been working for others as
you develop your own trading plan.
Since we were already on the topic of Matt's own trading style,
I figured this was a reasonable scenario to ask him how he handles
.../john in Victoria, BC
Now that summer is upon us, for someone (like yourself) who is
going on holiday, do you:
- exit all your positions before you go so you won't get
- set a trailing $stop on all your positions and let them run?
If so, how would you come up with a $trailing amount?
Some multiple of ATR?
- switch to a weekly timeframe, using 9-week EMA and weekly
candles (and update your stops only once/week on the weekends)?
- something else?
Yes, this is a huge help.
In the newsletters, when you guys would say "trim and trail" or
"trail up your stops in accordance with your trade objectives" I
knew (in theory) what you meant, but didn't have a repeatable
concrete process for how to do it consistently.
I've needlessly given up a *lot* of gains via round-trips over
the years. This should really help.
p.s. Enjoy Disney!
Matt, I really appreciate your step-by-step examples of stop
Is the following an accurate summary of this approach?
Just trying to get it straight in my head how this works for
us who work another day job and can't be hovering around the
- In the
evening, set GTC Buy Stop Limit order just above
the breakout level with a Limit just above it (so it doesn't fill
if there's a gap). Use current day's 9 EMA as a potential
exit stop when you're calculating your trade size ( # Shares = Max
$ risk / (entry price - first exit price) )
- If it doesn't trigger and fill the next day, do nothing
- If it does fill the next day, take a look
mid-day(?)to see how it's doing:
a) If it's a solid up-candle (with small wicks), then sell 1/2
of position and move exit stop on remaining half up to somewhere
below the midpoint of the up-candle.
b) Otherwise, just leave it for now.
evening, consider moving up your exit stop to
whichever of the following is the
a) Today's 9 EMA
b) If today's low is lower than yesterday's low, then move exit
stop up to today's low
c) If today had a solid up-candle, then put in an order to
sell half (if you haven't already) and move exit stop on remaining
half up to somewhere below the midpoint of today's up-candle.
Lather-Rinse-Repeat each day.
Does this sound like an accurate description of your
Appreciate your patience.
My question had more to do with determining position
, given that the value of the 9 EMA, LOD, or trend line
(for whichever day the order eventually fills on) won't be known
when you place your initial Buy Stop Limit order.
Previously you've talked about taking your maximum risk $$, and
dividing by the spread between your entry price and stop price, to
determine the number of shares to buy.
If you don't know which day the order will fill on (because it's
GTC) and your stop is, say, a descending trend line (meaning your
eventual stop will get lower the more days that elapse before your
trade fills) or the LOD for the day it eventually fills, then how
do you know what your $risk/share will be?
That's why I was asking if you use a constant $order size, or
constant #shares, or something else when determining the order size
for your Buy Stop Limit order.
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