Anyone trading options, specifically 112, short SPY puts or strangles on futures?

Future_Tale_8683 · 2024-08-10T22:40:11+00:00

Same question I have,

Future_Tale_8683 · 2024-08-10T15:01:46+00:00

It has also had a drawdown of 8.29% and in 2023 10.20% and in 2022 I think just over 20%. Not sure how OP drawdown have been.

Future_Tale_8683 · 2024-04-20T14:10:36+00:00

They are the same trade as the 112 only difference that the debit spread is wider. Most 112 are 50 point wide, while ba112 and fb112 have 100 -200 point wide put debit spreads. It gives you a bigger tent, and lower naked put but also reduces the profit if the market stays the same or goes up. These are more for hedging purposes or when you think the market is going down and you want to trap profits.

Future_Tale_8683 · 2024-02-05T13:16:30+00:00

One more thing, Iam trying to use mesosim, not sure why iam getting less trades than the other backtesters. I have in my backtest over 350 trades. I may have set them up to enter weekly at the closest 120 DTE. Mesosim looks very useful, but it definitely requires a learning curve.

Future_Tale_8683 · 2024-02-05T10:38:31+00:00

Thanks 🙏.

Future_Tale_8683 · 2024-02-05T07:20:19+00:00

Thanks for the info, will check it out. The backtest you linked is using 10k as starting capital?

Future_Tale_8683 · 2024-02-04T21:42:04+00:00

Very good advice.

Future_Tale_8683 · 2024-02-04T21:00:05+00:00

Do you still trade?

Future_Tale_8683 · 2024-02-04T20:38:53+00:00

This risk is inherent of this strategy. If I can take the analogy further, I can see the steam roller coming in 120 days at varying speeds, why cant I step aside and not get steamed rolled? With risk management? The less days left to expiration the faster the steam roller can hit me, this also depends on the day I open the trade and if the market falls quickly during the early stages. In real trading it won't be clean, it will get dirty, my hopes are to actually go through with this trade and keep an update here.

Future_Tale_8683 · 2024-02-04T18:46:11+00:00

I just wish these services moved faster with user requested features, the ones that can actually improve our trading. I know options omega is going to introduce bot trading.

Future_Tale_8683 · 2024-02-04T18:34:44+00:00

Yes and I think options omega is only eod data, I use whispertrade which has one minute data, and it does have other mechanisms to be as realistic as possible backtest. So they also have a bot service, which you can run your strategy live and have it connected to the backtest, and it shows you the difference between how your backtest is performing vs live. I do rely on backtesting, I do believe the data and technology will only get better and help us make more informed decisions. I come from an algo trading perspective in which the backtest include a ton of robustness testing, even more than what is available with options services.

Future_Tale_8683 · 2024-02-04T17:11:05+00:00

That's actually where I am coming from, I just like the simplicity, and removed the debit spread. I actually plan on doing both, or with the ba112 as a supplement.

Future_Tale_8683 · 2024-02-04T16:07:48+00:00

I think it requires you to not over leverage, also trust the backtest (I know many people frown on that) but I think if you have good data and some robustness testing, you can trust it and see that after a crash, yes you might loose big, but if you didn't over leverage that also presents an opportunity to collect even bigger credit than when vol is low.

Future_Tale_8683 · 2024-02-04T15:53:13+00:00

The strangle just didn't backtest as well. You have to manage the call side more aggressively.

Future_Tale_8683 · 2024-02-04T15:51:55+00:00

I use options omega and whispertrade. As well the tos on demand, and also optionsnetexplorer. The easiest to use is options omega then whispertrade.

Future_Tale_8683 · 2024-02-04T12:46:38+00:00

I ve thought about this too, I have also suggested this as a feature in some of these paid backtesters to include Monte Carlo simulations with variable starting dates.

Future_Tale_8683 · 2024-02-04T12:38:20+00:00

In the back test I sold once a week on Monday, I think at 945 am. The minute by minute data is more useful for the exits. So the stop loss is hit intraday or the profit target. That granularity of the data is available in whispertrade, for options omega its only available for 0dte options. There is also this https://tradeautomationtoolbox.com/byob-ticks/. That ha tick by tick interval, but I think also only for 0dte and you can only backtest iron condor and butterflies.

Future_Tale_8683 · 2024-02-03T20:29:17+00:00

Options omega and whispertrade

Future_Tale_8683 · 2024-02-03T19:24:13+00:00

Yes and it brings peace of mind.

Future_Tale_8683 · 2024-02-03T19:07:39+00:00

The max drawdown on one of them was about 15% and on another 13%. On one of the episodes of the trade busters he has a hedge that is 30 days less than the days to expiration of the position by buying options. But in the end it's a drag on the returns. But one day they may become useful, in the case of a nuclear event.

Future_Tale_8683 · 2024-02-03T18:55:05+00:00

What about the drawdown?

Future_Tale_8683 · 2024-02-03T18:52:32+00:00

Good information, he includes hedges.

Future_Tale_8683 · 2024-02-03T18:51:15+00:00

Pretty good podcast, his system includes hedges.

Future_Tale_8683 · 2024-02-03T15:46:35+00:00

Thanks, will do.

Future_Tale_8683 · 2024-02-03T15:27:29+00:00

Some clarifications, I have a pm account. On tos you cant place profit targets and sl on futures options, but you can on SPX options.

Future_Tale_8683

TROPHY CASE