"Volatility trader" trading result

The last option you sold WDAY had really bad liquidity, as I got filled at .10. Some auto-traders got filled at .05 (see auto-trading data on C2). Is it possible for you to limit the options you sell to ones with sufficient liquidity to supply your auto-traders?

2 Likes

Hi Jeff. As I explained in the email. At the time of the trade the bid ask was .35 and .70. There was 129 bid at .35. As soon as my trade .50 went thru, the .35 bid disappeared completely then came back about 5 seconds later. So a couple of you got .36 and .35. But majority of you got the Algo bidsā€¦A lot of bottom fishing algos trades options, this was one of those time where the .35 buyer took the bid off the system to readjust the price to .40/.50. Because if you look at bids 5 mins later. All the bids were much tighter. Bid and ask was around .45 and .70

Yes. I will definitely will try to find a better solution to that. In the mean time I will see if c2 can help me with reconfigure a API might work.

OK, thanks. Overall, nice work otherwise.

I wish c2 can look at my email alert and use that as trade order with autotrade sub. As you can see my email alert said sell 30 shares limit order at 0.50. What I donā€™t understand is why c2 canā€™t place that same order across all subscribers. I understand if you set a limit orde the trade might never happen. Maybe c2 can let each subscriber set their own slippage %ā€¦ So if leader got .50, my limit order is .45 and thatā€™s the lowest heā€™s willing to take. Or else it will be cancelled eod. I think that would be a great feature for c2. But because of acct sync every 2 mins, C2 tries to sync leader and subscribers acct together thru mkt orders. Thatā€™s where 90% of the slippage happens. On avg we get around 10-25% slippage, but this trade we got trolled massively for 2 seconds. Now is back to bid at .45 and ask at .60

Yes, it might be better if the orders could be submitted through the C2 API. Right now the limit order first gets submitted and filled in your account and then c2 sends market orders to subscriber accounts to match the position. It would be nice if subs could get the same limit orders sent to their account around the same time that it goes to your account.

Hi Max, i tried using IB2c2 API script a couple weeks ago. We tested on 1 contract of our 77 Netflix put. If you look at the track record of it. C2 sold the share then bought it right back 2 seconds later. everything needs to trade instantly on my IB acct and c2. or else sync will buy it back to match the holdings. sometime due to availability or bid/ask. not every trade will go thru instantly, thats where sync on my side or c2 side creates dup trades or buy/sell the trade after 20 seconds.

Finally hear back from c2 regarding why my strategy is showing only 82.7% of my signal are followed.

C2 said they donā€™t know why, and they canā€™t fix it. They said the trade leader is 100% linked, and 100% of the trades are followed and synced. But donā€™t know why TOS badge is only showing 82.7%

Only solution to this is to just deal with it and write an explanation on the description tab (Which I donā€™t know what to write when they canā€™t give me an answer to why). Or 2nd option is to start to startover as a new strategy to reset the TOS stats.

I know this not the answer We want. But it seems like there is nothing we can do about it according to c2. Sorry I tried.

I would like to hear from all his subscribers, how is the impact regarding slippage enter and exit for your bottom line, I mean, your net profit and loss? was it acceptable and how wide the difference in percentage.

Hi Vix trader, I understand for naked options, the profit is limited (premium) when you wait until expiration but the loss is unlimited when the price against your favor. How do you handle this? I saw some example from your track records, you did scaling. Do you also hedge position ?

Thanks

Hi Sam. We do hedge. Well look at last week on $twlo. We hedged during a big spike and got burned badly on the hedge. Also at time in the past we sold svxy and uvxy calls wanting to get assigned. So we write those option sole purpose is to get assigned.

You are right about the risk. Writing option has huge risk. Was down 35% from vrx back in March. Vrx gap opened down 40%. As I said before, this strategy is not for faint of heart. My other boring strategy is simple and only long vix ETF. Swing and intraday trade only. Much more beginner/novice friendly. No need for margin or option writing.

1 Like

New update on TOS detail showing incorrect % trades follow:

A sub had figured out why my Percent signals followed is dropping every week. From last week 82.7 to current 81.6.

Based on heā€™s explanation, that c2 option expiration and assignments are NOT consider # trading signals executed in managerā€™s Interactive Brokers. But itā€™s included as # trading signals issued by system since certification.

Last week there is 103 trades dicrepency between those 2 numbers. Today the strategy has total of 7 options expired and 1 option assignment. As of today, now there is 111 trades discrepancy between the 2 stats. Because of that reason, Percent signals followed also drops another 1.1%. And it will continue to drop going forward.

@MatthewKlein is this something can be corrected?

1 Like

Make sense , but assignments are important as well , so how subs will be sure that you have been assigned in your IB account ? Plz no screenshots ā€¦

If I kept the option why wonā€™t I get assigned like my subs? How is it possible to avoid assignment?

I Still donā€™t understand how and why you donā€™t think I match my IB and c2 acct 100%. I donā€™t think there is any other way to work around it. If there is a way, then Iā€™m not tech savvy enough to know how to work the system.

Since i canā€™t post screen shot. You just have to take my word for itā€¦

1 Like

I dont have an issue with you in this hence i am not a sub that being said based on your explaination above then your subs wont be sure that you have been assigned in your IB account . For example if you dont have enough margin to purchase the underlying security so you or your broker will liquidate your options at the close .

If I get margin call or liq before the close. C2 will alert subs at close or after close. On Monday morning c2 will sync at open. All positions will get sync exactly the same as my holdings. So if I didnā€™t get assign, they did. At open subs will liq the assigned stock instantly. That had never happened.

C2 does a great job making sure everything is sync at all time. So I canā€™t just avoid assignment or game the system without subs knowing.

So you are sending signals from ib to c2 . TOS system could mean that you follow your own signals at c2 on your IB account in that case you still may have some trades exectued on your ib account but not on c2 and subs wont be synced with these positions .

yes, im sending 100% of my trades from IB to c2. I didnt there is anyother way and I didnt know its possible as trader leader to execute trades on IB and not c2. because ā€œauto syncā€ will always notify subs or reverse the trade if holdings did not match in leaderā€™s acct to subscribers account.

Because i was the impression that the beauty of c2. where TOS means every trade in trade leaderā€™s account is same as all hes subscribers. only reason i started a new IB account to test out c2 due to its transparency. unlike other trading sites like Tim Sykes self fulfilling guru or profit.ly where everyone on there are upload fake statements or XML. (but then later i also realize 95% of the systems on here are not 100% TOS)

Im pretty new to this site, so you prob know more about it then i do. so i understand your skepticism towards my system.

Good luck trading.

2 Likes

Auto traders are synced to your C2 account not IB account , this applies to all systems here TOS or not . You can send signals from your c2 account and have a TOS badge by auto trading your system on your own brokerage account like any subscriber do .

GL

@VixTrader,

Could you please comment the following moment from your trades -

On May 14, 2016 you had some options expired and stocks assigned:

WYNN1613Q91.5 and WYNN1613Q91 puts expired in the money, and you get long positions in WYNN: 2,500 x 91.5$ and 2,500 x 91$. Also your SCTY1613E18 calls expired at the same time and you get short position in SCTY: 2,000 x 18$. Total position was 2,500 x 91.5 + 2,500 x 91 - 2,000 x 18 = 420,250$. Account equity at that moment was around 135,000, which gives 68% margin. As I know IB allows 50% margin for securities on Reg T account.

Could you please clarify how it was possible to open and keep positions borrowing more money than allowed by broker?

Thank you

He uses portfolio margin, therefore he can borrow more money. He needs to maintain net cash $100k at anytime in IB

Im actually still reg T margin with IB at the time of May. I didnt switch over to PM until august. because PM req forumula decreased margin by another 10% due to no mkt volatility. but thats another story.

back to your question. even on IB reg t requirement, from my person experience with IB past 10+ years. They require less margin. most stocks are 25% margin requirement, even if you are on reg t acct or PM acct. so if like you said the positions are 420k. IB reg t accont will only require around 105k balance.

I tried to go back to the may 14th statement, which is only 13th or 16th. since 14th is non trading day. Also if you look the call/puts. scty and wynn some of the positions are covered call and covered put. Those also requirement no margin.

im sorry if my answer didnt help anything. I wish i can pull up what my current available/current excess/SMA on that day. i will see if IB can find out what those numbers are on 13th and 16th of May and get back to you.