Posted by falcon5678 on 19th of May 2011 at 12:36 pm
Well my apologies then! I assumed you generated prices
based on a ramdom pricing model but if you based the trades on
actual bid/ask prices that is fantastic work! The vol
levels don't matter then for your results. I
suppose they matter in a general sense since anyone trading
options should be aware of those risks but as far as your results
are concerned - great work! Thanks for doing this. You
are right that the risks are mitigated by the average trade
length. Bottom line is - when a system is correct on 9 out of
10 directional trades you're going to make money trading options,
no matter how much the vols are moving.
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Well my apologies then! I
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Posted by falcon5678 on 19th of May 2011 at 12:36 pm
Well my apologies then! I assumed you generated prices based on a ramdom pricing model but if you based the trades on actual bid/ask prices that is fantastic work! The vol levels don't matter then for your results. I suppose they matter in a general sense since anyone trading options should be aware of those risks but as far as your results are concerned - great work! Thanks for doing this. You are right that the risks are mitigated by the average trade length. Bottom line is - when a system is correct on 9 out of 10 directional trades you're going to make money trading options, no matter how much the vols are moving.