I’m now going public with my oil strategy, TradeXpert Crude Oil https://collective2.com/details/108426669
After a period of difficulty in getting the TradeStation/C2 interface working satisfactorily, it is now performing well with the newly introduced C2 Platform Transmit function which is handling the signals from my TradeStation workspace correctly. I Trade Own System in my TradeStation account.
With volatility in oil having picked up greatly, strategies with trend following attributes tend to perform better. I’m looking forward to a lengthy period of oil volatility which may be quite beneficial to my strategy.
The problems associated with signal transmission from my TradeStation account into the C2 platform have been ironed out and the system is now working quite well. This is a fully automated futures trading strategy, so some volitility is to be expected, but the positives of this system are as follows:
Straight forward, “old fashioned” trading with stops and targets, one contract at a time. No Martingale, no huge risk, no naked options to worry about.
Usually 2 to 5 trades per day, so it’s no problem missing a day or two now and then, you’re not going to miss that one winning trade per week that some systems rely on.
Oil futures are traded 23 hours per day so Black Swan events are no problem, actually they are welcome. The bigger swings the better. You’re not going to wake up one morning and see how a major overnight event is going to decimate all those naked VIX options, when the stock market opens. A low correlation to the stock market and other markets allows for a good spreading of risk.
So take a look, could be a good system for those looking for diversification.
P.S. Since I know how important it is for many Investors that the system is TOS, I’ve now initiated the transfer of $10K from my TradeStation account inte an IB account, thereby allowing a TOS stamp of approval once I begin autotrading there. Should be completed in a few days.
how long have you been personally trading your strategy? How did you do last year?
Hi. This current system I’ve been trading for about 9 months (though as a developer, I am often tweeking and streamlining the algorithms so it’s never exactly the same as a few months prior). For that reason it’s not very relevant how I did last year, I’m affraid, as I traded a multitude of different products and used other systems as well (in essence, I don’t know how I would answer the question precisely…)
You can get an idea of the trading method, roughly, with this video here (though in Swedish): https://youtu.be/ceWPzVyQaoo
Check out my site as well www.TradeXpert.nu
Thanks for your interest.
These naked option sellers/traders can still hedge their positions with long out-of-the-money put options on one or more of the major stock indexes.
Can? Or do? All of them (developers)? Before the Black Swan event, or
during/after (when it’s too late)?
All I am saying is that there are ways to hedge short naked options.
I mean it is extremely foolish not to at least get some protection/insurance against any possible downside risk, especially if the short seller/trader is heavily invested.
In fact some traders spend their time betting on catastrophic financial, Black Swan, Long-Term Capital Management fiasco type of events (like a sudden 10% drop or more on the Dow, the Nasdaq, the Nikkei, the DAX, the Mexican peso, the Turkish Lira, you name it) using extremely cheap, way out-of-the-money put options.
They only need to hit the “jackpot” once or twice and they are set for life.
PS: Nice crude oil system by the way, keep up the good work.
It begs the question why aren’t people here doing it.
Is it because they don’t know what they are doing, don’t want to take the performance hit from the hedge, or actually wouldn’t have much of a performance because they are relying on 5x leverage with naked options? You can’t get that kind of leverage (5x) with spreads without running really tight spreads with 100% of cash committed which then make your trades more like large binary outcomes (and even with an edge you might get blown out).
There may be more but the only people I know on C2 trading spread strategies are myself and DavidJuday. There are ALOT of people trading big leverage naked options and/or products with convexity unhedged, one day there will be an epic reckoning…
Perhaps, but what makes you think that these naked options traders/sellers are not already protecting themselves with long put (or calls) options, regardless of the trading signals they are receiving from C2 developers, for example?
It is certainly possible and I would strongly suggest they do.
I would think it would make more sense for the model provider to hedge and then let the people who want to go nuts with leverage and tail risk just follow manually while not putting on the hedging positions rather than the other way around, this way less sophisticated subscribers don’t get a terrible surprise at some point.
Interesting. I see you were mostly flat until mid March, then things got better.
Did you change anything, or was it because different market conditions?
BTW, It will be great if you had the content in English instead of in Swedish
Damn, that is one viscous looking equity curve, those valleys are deep and dangerous!
Its been made private…lol