IWM Iron Condor 25%, 50%, and 75% Profit-Target Case Study
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- Опубликовано: 10 сен 2024
- optionalpha.com - Today, we'll review the results from multiple IWM iron condor backtests and then look at the impact of adjusting profit targets from 25%, 50%, and 75% of the initial premium collected. In this case study, we're trying to determine if there's any value to holding positions longer, seemingly for higher profits.
Magnifique episode! My temperament dictates I would tend to go with Option A. I'm personally so glad I signed up for lifetime membership back at the beginning even though I've put off using it until sometime next month(??), studying the lessons on and off while in beta, and now mentally and emotionally ready to reduce the number of trading approaches to One. I'm 70 now, and have had enough of dividing my energies too thinly.
I seem to remember this study using your "paper" (PDF's) research books a few years back. It's such a vivid lesson to enjoy
I'll review the technical details for establishing an auto trading account and move a chunk of money there at one of the brokerages that agreed to work with us and getting to it. when complete, I'll let you know.
"Dr Bill" Kiele
Very good video! Thanks so much for the work going into this.
Very welcome!
I don’t understand how your not at a billion subscribers. Your content is far superior to your peers…
haha us either ;)
Lots of Great data, love the back testing
Thank you!
25%
As transaction cost can be potentially big if we take profit at 25%, do you have any backtests that include transaction cost?
True you should always consider transaction costs which is why we present data on position level. That said, we have many exclusive brokerage agreements for $0 commissions* for our members. Details here: optionalpha.com/integrations
Ok I was wrong .lol that never happened before .. but run this same test on an ATM IB and maybe I would be right LOL even a broken clock is right twice a day " )
Was the only trigger when to enter criteria 10 days to expiration? 25% would be my preference.
Correct that was it (plus a little IVR filter I covered).
this looks to be a very simple and powerful for back testing. i guess with adjustment this can be further improved. Can you not add filter for adjustments for backtesting. For ex: if it challenges any side before reaching 25% of profit, adjust the position. I think that would increase the profit and returns further.
I am going out on a limb as well I have monkey bots .. and thinking 20% comes at lot more times than 75 % ? so the lower % should do better rinse and repeat .. did not look ahead LOVE your case study .. need more of what not to do especially with new folks " )
I'm going to guess 50%, mainly because that seems to be your go-to level in general.
You did not do any adjustments to the trade? Just exited one day before expiration or at selected profit target?
Correct, no adjustments in this test.
All 3 strategies are underwater since mid-2015
Amazing Stuff.
Thanks!
50%
Did this Stat reinvest profits?
Only to the extent that the portfolio grew or contracted so the next trade is a function of the value at the moment size wise.
75%
50%
I like 30-50% close it out. Very interesting video though.
@@Choppus13 I don’t really trade weekly options, but with defined risk trades I usually get out at 25%.