If you have enough to earn $20K from short gamma then you're trading large enough to fund a personal account. None of this makes any sense.
Although I welcome constructive criticism, messages like "1M in rubles" carry no meaning for me, so going forward, I’ll simply ignore them. I never said I earn $20k from shorting gamma. What I said was that the equity lost in that situation was equivalent to $20k, because part of that amount was a payout, part was the value of the funded account itself, and the rest went toward the hedge. If done correctly, the cost of passing any challenge and reaching the funded stage is usually no more than 50%—and often around 35%—of the amount the firm covers afterward. Since no instrument moves wildly up and down by ±10% every day, the time spent waiting for a move converts into burned theta. People can sarcastically shout, "40% ROI? You must be the next Warren Buffett!" all they want, but it’s important to understand that arbitrage strategies are supposed to have a high ROI—whether it’s traffic arbitrage, asset arbitrage (like Rolex watches), or options. I’m not selling anything to anyone. I’m simply sharing my experience showing how, with a bit of effort, anyone can profit using options and prop firms.
How is the the $20K Blue Guardian loss "covered" by short gamma? Your words. It doesn't matter what was in the BG-account. "The rest went toward the hedge" so it wasn't in the BG-account so you're throwing good money after bad. You should stop. Find gainful employment.
As I mentioned above, one company’s failure to pay doesn’t mean that all companies will fail to pay. Otherwise, no one would use prop firms at all. I’ll be happy to respond to constructive comments, but yours seem unhelpful to me. Thank you.
Short gamma and *magical* theta are not hedges (unless hedging long gamma). You're at the "shorting options is cool!" stage. Clearly you're going to need another revenue stream outside of the prop thing.
Your post raises more questions as pointed out by some 1) When you say "I lost small amounts with companies like..." it was loss not because of being wrong in trading on prop account but straight forward fraud by these companies so you lost twice The winning leg at prop meant nothing + lost the Option.. Meaning the Hedging by option will only work if the so called prop firm really pays! 2) If you are so good to get funded then why not just stick to those regulated first loss firms! that way chances of getting paid are high then your hedge will really protect you
Hey! First of all, thanks for your reply. Regarding your points: 1. You're absolutely right — I'm losing money whenever a company doesn't pay out profits. But my solution is to diversify across more firms to reduce that risk. That's why I mention that I work with several companies that pay reliably and with whom I collaborate on a continuous basis. 2. Exactly — that’s the point. Although I expect to incur some losses from time to time due to scams or non-payouts, I consistently earn profits from the options market on a daily basis. Slowly but steadily, those gains help cover the losses from scam firms. If I combine all the data, I'm still up around 40% capital growth overall. So, if you manage your risk properly and don’t chase a single $1M payout, it’s absolutely possible to generate steady profits.