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#252 - What If 20 Seconds Was Worth $218,759?: Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, I want to answer the question, “What if 20 seconds was worth $218,759?” Now, where on earth did I come up with that number? Well, I was recently...

#252 - What If 20 Seconds Was Worth $218,759?: Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, I want to answer the question, “What if 20 seconds was worth $218,759?” Now, where on earth did I come up with that number? Well, I was recently...

A partire dalThe "Daily Call" From Option Alpha


#252 - What If 20 Seconds Was Worth $218,759?: Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, I want to answer the question, “What if 20 seconds was worth $218,759?” Now, where on earth did I come up with that number? Well, I was recently...

A partire dalThe "Daily Call" From Option Alpha

valutazioni:
Lunghezza:
6 minuti
Pubblicato:
Jun 1, 2018
Formato:
Episodio podcast

Descrizione

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, I want to answer the question, “What if 20 seconds was worth $218,759?” Now, where on earth did I come up with that number? Well, I was recently running a back-test with a guy during a coaching session and literally, one tweak that we made between one strategy and the other strategy, very small tweak to just the strike prices created a difference over 10 years for that back-test of $218,759. I am still dumbfounded, honestly by why people don't use more back-testing in their options trading when they start actually trading and putting their hard earned money at risk. Now, I honestly don't care if you use ours or try to use other people's out there. There are other services that do back-testing as well. We think we provide an insane value because it’s just a one-time investment with lifetime access. I think there are a lot of other services out there that don't have as much data as we do and also charge a monthly fee for it. But in any case, wouldn’t you want to use something that is proven to work over many, many trades, many market scenarios, different environments versus trying to just hope and pray and guess that whatever trade you’re getting into now works in the end? That's what I see people doing all the time, is they get into a position and they get into it because they just feel like that's the best one for them and they don't know why or there's no real rationale behind it, there's no mathematical models or expectancy models behind the trade that they’re getting into and you end up wasting a lot of time by trying to pick and choose all of these different strategies to see what works. And so, the goal that I had in building this out was selfishly for myself because I wanted to be able to back-test strategies before I got into them and I didn't see anything out there that I thought worked really well, so I want to build it myself and build it in-house at Option Alpha because I wanted to know “Hey, before I put another $2,000 or $3,000 towards this trade, does this actually work out if I were to do this over and over and over again?” Because what we all don't have is we all don't have more time. Every single day, we’re just wasting away at the time that we have left to invest and to trade. Time is the most important thing that we have right now. The longer time span you have to trade and invest, the better off you’re going to be, but if you're short on time or you're getting short on time, you better be trading the right strategies because I'd hate to look back… And I’m saying this for myself. I would hate to look back say 10 years from now and say, “Man, I wish I would’ve done things a little bit different.” Let me give you guys an example. I think that what we learned in our profit matrix research (again, I'm sharing this because I want to provide value to you) is that you see a direct correlation between trades that you hold generally longer towards expiration and higher returns. Now, this doesn't mean that you hold every trade to expiration, but what it does mean is that if you're willing to hold trades a little bit longer, in some cases, beyond the 50% profit target, if you hold to say 60% or 75% profit, you will generally see higher returns on the long run, meaning that you'll generally see more money in your account, higher cagiers and you might have to go through a couple of more ups and downs in the process to get there, but it generally ends up creating more revenue and more profit for your trading account. Now, that’s really insightful stuff that we did not know before. We thought that “Hey, if you take trades off early, your best trade is to close it really early.” But now, we’re starting to see that if you hold trades just a little bit longer, especially if they’re neutral and right in the middle of your range anyway, they’re not really challenging you, why not hold them a little bit longer to expiration? Again, y
Pubblicato:
Jun 1, 2018
Formato:
Episodio podcast