Hi Eric! Great video as always. I really miss seeing your content. Could you share some specific, practical examples of how you've implemented this in your options trading? I'd love to hear about your experiences. Thank you!
hey man, i literally do this on every single trade haha so take a look at my trade management playlist, youtube lives, etc you'll find tons of examples in there!
1. FOMO from what you hear from everyone else and what they are doing. 2. Confirmation bias. When testing strategies, we might be too quick to confirm that something works or doesn't work. But we might not have let enough time pass for the strategy to play out in its entirety [depending on how your trade is structured I guess]
Hey devil dog! Where were you stationed? I was in the same time as you about. Las pulgas himars. Rah! Haven't been a profitable trader til this year and not high return yet but hoping for 20% just sell csp
Sup brother, I was on cpen - horno. 20% via CSPs alone will be doable but a much harder path to achieve it IMO. You should hop in our discord, happy to chat and help however I can.
on cutting tails or max loss @19:15 , how would you recalculate expected value, if you cap max loss at 90%? is it just EV = (PoP * Win) - ( (1 - PoP) * (90% * Loss) ) ?
I wouldn't use PoP here - that pertains to expiration. if a stop is going to be implemented, we'd need to use the probability of being stopped at the price level that would yield that 90% loss.
I can't believe you skipped my question man. I'm going to have to tell Tampa Buckeye about this. Wife is always complaining about my sizing issues. I wonder on the 655k fidelity loss post if it was just a spread. The photos cut off of the whole account if he had sold the spread he would have made credit and might just be posting that clip for clout?
Honestly age doesn’t matter - I know you’re referencing that here as a risk proxy but it’s more important to look at specific functions. Entirely viable but will include extremely rough paths. Example if TQQQ was around in 2002, it would’ve effectively gone to zero.
@@OutlierTrading edit - using April 2000 a starting point for $1000 in then $100/month, tqqq port would be worth $552 275 (CAGR 58.28%) compared to VOO $57 622 with CAGR 34.29% Struggling to see the downside here but am new. Max drawdown is large but it seems to not matter if course is stayed and markets are bullish long (10-20+ years) term
@@OutlierTrading using April 2000 a starting point for $1000 in then $100/month, tqqq port would be worth $552 275 (CAGR 58.28%) compared to VOO $57 622 with CAGR 34.29% Struggling to see the downside here but am new. Max drawdown is large but it seems to not matter if course is stayed and markets are bullish long (10-20+ years) term
Hey man, I seem em! Just takes me a little to answer each. You’re looking at a few of the correct things, the primary drawback is return volatility. It’s easy to gloss over a 90% drop in account value when we KNOW the outcome is positive. This becomes much more difficult in practice. Perhaps tech falls out of favor. Perhaps new regulation stifles innovation and profitability. Etc. Then picture the process of opening your portfolio and seeing your account balance down over 90% for weeks or months on end. Etc. Remember, spend more time carefully analyzing the “unhappy” path of trades to avoid getting caught off guard when it inevitably happens.
Is that howie hubbler? And nice list here en.wikipedia.org/wiki/List_of_trading_losses. Livermore when he couldn't afford anything but a straw boatman hat, sad.
