Ok got your point. I am aware dynamic hedging comes at a cost, sometimes to the extent that it wipes out the whole profit potentiel of an...
Ah yes I see what you mean Mav. Got a bit caught up in the greeks without having tried to understand what they stand for... Fair enough, but...
Which means that if there's a spike in IV, there is no need to panic if you are vega short and your risk under control, because eventually IV will...
I agree. How about if you plan every strategy so that if vol goes against you, you will not be forced to close your position. Example : the...
OK terminology left apart, is my theory about having an edge when playing volatility mean-reversion via any type of fixed loss-fixed payoff (short...
Ooops sorry I got it the wrong way round. Well you got the idea though?
Yes in theory expectancy should be the same for any kind of strategy, assuming the options are priced correctly. But I've always wondered :...
Ok, and how about trading credit spreads?
Define active traders. And don't forget that if they're that active, they are probably much more aware of the risk than individual investors who...
That's my point: nobody knows for sure, not even the market gurus who come up with that statistic. You say its close to 99%, but there is no proof...
The question would be the same. There is no proof that it could be 99%. Besides, don't forget that stock markets have a bullish bias : they...
lol
Fair enough. Then are you suggesting that 90% successfull traders figure is wrong?
Well, yes it seems reasonable. Although some (Buffett, Soros) seem to still have an edge after all those years. Here's another thought : I...
Well that could make sense trade4success, I guess. That would mean there are an equal number of new successful traders than retiring ones. But...
I agree trade4success... But even with one in ten traders making money, you would end up with an ever-increasing number of successfull traders....
I've often read or been told that 70% daytraders aren't profitale, or even 90% forex traders get wiped out. While I won't deny trading is...
Thanks pumpanddump but would you mind being a tiny bit more explicit: what broker do you use? what are the problems you have experienced with IB?...
Thanks for these different opinions. There are enough option markets to trade electronically at IB, it seems... (with the Liffe notably, which...
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