StockFetcher Forums · View by Author: (2 messages)  [ Display By: Date / Subject ]<< >> 
Filter Exchange · A NEW ^VIX TRADING SYSTEM
stanstuart
msg #133119
12/7/2016 8:41:19 PM

Long 300 TVIX at 10.00 with overnight order for 1 VIX Dec 27 call option, 10.00 strike at 4.00 LMT. Thanks, Kevin, for all your work and help over the months. years.

Backtesting Support · I can trust the backtesting information about my strategy ?
stanstuart
msg #75756
6/24/2009 12:42:56 PM

One useful way of thinking about trading strategies is to categorize them into two basic groups, which display different behaviors in terms of magnitude and relative frequency of beneficial results, as follows:

Investment Type 1. Small probability of large profits. Low win/loss ratio, but hopefully a high rate of return. Purchasing out-of- the-money options, for example. It will take a large number of investments to indicate whether or not such a strategy will be profitable over the long run. Depending on market conditions, your decision rules for the selection of your option purchases may be profitable or lucky for a while, then go south, when fundamentals, technicals, psychology change.

Investment Type 2. High probability of small profits. High win/loss ratio, and usually a lower rate of return. Investing in short term bonds, real estate, or in selling option contracts, or in issuing insurance policies. There may be rare but very large losses. Note that a strategy might appear to be quite stably profitable, until the investment environment changes suddenly, due to market surges or collapses, or interest rates change rapidly in either direction.

Long term success requires use of a device similar to an industrial control chart, where the process upon which investment decisions is based is able to be monitored, and important changes in market conditions can be detected, that is separated from random noise.

Diversifying is required to protect the nest-egg, so that sudden reversals in the case of Investment Type 1, or extended changes in underlying conditions can be mitigated against, usually by diversification over investment vehicles, investment types, or over extensive periods of time.

Backtesting always involves assumptions. The tester should try to be aware of the extent of these and their effects on reported results.



StockFetcher Forums ·  · << >>

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2022 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.