Posted by elementsix on 28th of Feb 2020 at 04:45 pm
Couldn't agree more with 24kau. It's psychologically hard to
watch these reversion to mean trades on the way down but I
absolutely believe in the system. No system is perfect and this
could be an instance where it doesn't work 100% in
our favor. That being said, my positions have 77 days til
expiration and my BPT options positions
paired their total losses by almost 50% in
the last 15 mins of trading today. One even went
green. So stick with it everyone and a big thanks to Matt and
Steve!
ditto, the system is great and makes a profit 99% of time. What
is important is the trade size dedicated to entries 1 and 2. These
make the most entries and profit. But occasionally every
couple of years there are black swans (2 in 2018) and it is these
events that require risk management. AS STEVE and MATT have
constantly said, don't trade all of your acct in spy system.
I have allotted 10% of my spy acct to entry 1. 15% to entry 2. 20%
to entry 3. ETC because entries 3 to 5 far less
frequent (some only occur every few years) I will leave that
reserve $$ in the spy and use Matt's 120 min system to get out and
have that cash available for the black swan event at lower levels.
The draw downs for entry 4 and 5 are a lot less. Thanks Matt
for the great systems and please keep them going. It is the correct
allocation of trade size to entry 1 and 2 that matter in the long
run. And if is makes a loss once every ten years, it is more than
made up for by the 70% average annual gain by the appropriate
modest entry size for entry 1 and 2.
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Couldn't agree more with 24kau.
Here's some thoughts on the reversion to mean system trades
Posted by elementsix on 28th of Feb 2020 at 04:45 pm
Couldn't agree more with 24kau. It's psychologically hard to watch these reversion to mean trades on the way down but I absolutely believe in the system. No system is perfect and this could be an instance where it doesn't work 100% in our favor. That being said, my positions have 77 days til expiration and my BPT options positions paired their total losses by almost 50% in the last 15 mins of trading today. One even went green . So stick with it everyone and a big thanks to Matt and Steve!
ditto, the system is great
Posted by elliotw on 28th of Feb 2020 at 04:59 pm
ditto, the system is great and makes a profit 99% of time. What is important is the trade size dedicated to entries 1 and 2. These make the most entries and profit. But occasionally every couple of years there are black swans (2 in 2018) and it is these events that require risk management. AS STEVE and MATT have constantly said, don't trade all of your acct in spy system. I have allotted 10% of my spy acct to entry 1. 15% to entry 2. 20% to entry 3. ETC because entries 3 to 5 far less frequent (some only occur every few years) I will leave that reserve $$ in the spy and use Matt's 120 min system to get out and have that cash available for the black swan event at lower levels. The draw downs for entry 4 and 5 are a lot less. Thanks Matt for the great systems and please keep them going. It is the correct allocation of trade size to entry 1 and 2 that matter in the long run. And if is makes a loss once every ten years, it is more than made up for by the 70% average annual gain by the appropriate modest entry size for entry 1 and 2.