Regarding Our Strategy.... Were unlike anything thats out there. This is just the start of something we hope will be something completely new, fun, rewarding, and, of course profitable. First thing to know: There is no subjectivity in our trades. Most (all?) trading services rely on some degree of subjectivity of the authors. While their experience counts for something, you never really know how their strategy REALLY played out historically, and, thus how it may play out in the future. Second: Were building a trading strategy (four, actually) that are backtested across over 300 stocks. Every day were trying out new variations on our basic concepts, refining them, and doing it again and again. Its a lot of work! Whats interesting is that the EXIT criteria is just as important as the entry criteria. We hope to take the human subjectivity completely out of the picture and just play on the probabilities. Third: Were geared toward working folks (like us) so we want low stress trades, that you dont have to be at your computer 24/7 to trade. IF you ARE at your computer, we want to deliver low stress intraday trades that dont have you staring at your computer all day. We work full time, we get it. Fourth: Okay, so what are our strategies? Monthly spreads, and intraday naked option trades. The monthly spreads are broken into two categories: directional debit spreads, and quasi directional spreads. The naked options are purely directional trades. As to the monthly spreads... our model focuses on debit spreads for stocks with lower volatility, and credit spreads for stocks with high volatility. Our propriety (beta) model identifies the best trades, and thats what we post. No technical analysis here, no support/resistance levels... we are starting with the assumption that markets are totally random, and building from there. No one else (outside the TastyTrade folks) takes that world view. The daily directional options... this is an exciting addition that were still modeling, but it should be fun. So where are we? Were less than a month into the project, and a lot of work is going into our modeling and backtesting. Our trades we post are actual trades were entering, and we encourage you to PAPER trade them, or trade them at your own risk. As we refine our model well provide more details on the parameters... for now, we can hint that the main parameter is implied volatility and changes in implied volatility. Well be transitioning to a formal website (paying, BTW) in a while as we iron out the bugs, at which time early followers will get a steep discount :)
Posted on: Thu, 10 Jul 2014 00:57:54 +0000
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