Risk to reward does not match even close 1 trade against you wipes 5+ years of consistent profit including stopp loss in place The odds are against you
I need to make 150K annually to replace my job income. What account size do I need to be able to generate this income? Do you recommend a broker for using this strategy?
You would need 1 million to do this comfortably and easily since that's a 15% return that you need. TastyTrade is a great broker, and I personally use them.
If all rules you have mentioned were followed, can you provide details on ROI and drawdowns for the years 2018-2023? It does not have the exact. I just would like to get an idea on what would be a reasonable expectation from this strategy.
I provided one generic backtest but don't have a backtest with the rules provided because it won't allow it. You can most likely expect a 99% win rate where you win $1,000 - $1,200 and will lose $4,000 - $6,000
@@AustinBouley You are correct in terms of expiration data, but when IV spikes 20% vega will make your theoretical loss feel huge and if dont have the stomach or the buying power to stay in the trade, you will blow up your account. I beleive the 1122 is way safer.
They dropped hard but they are still profitable! My returns dropped from +60% to +30%. However, I entered another 112 towards the lows yesterday and am already up $200 (14%)
If you clicked the link below and joined my free community, you would see that I am doing a live zoom Q&A call to answer any questions people had over this first lesson!
The trade type(1-1-2) will work on all underlyings. Its a Put debit spread + Naked Put. Even the bollinger bands are agnostic to the underlying. You can use the same methodology.
Yes, you have to enter your credentials to connect to your broker. We follow and use all the up to date security protocols and delete your credentials from our system as soon as your account is validated.
Market doesnt fall because it climbed past a bolinger band. It falls due to economic disruption such as housing bubble crash, covid, oversized fed rate hikes, war.
Risk to reward does not match even close
1 trade against you wipes 5+ years of consistent profit including stopp loss in place
The odds are against you
It does when you add a stop loss like recommended
@@AustinBouley If I understood you right, the stop is 4x the write price, right?
redo the back testing with the stop loss in place.. probably looks a lot different
The backtest does include the stop loss
I need to make 150K annually to replace my job income. What account size do I need to be able to generate this income? Do you recommend a broker for using this strategy?
Lol
x10. so you need at least 1.5 million to do it safely. You can do it with less, but you take more risk also.
You would need 1 million to do this comfortably and easily since that's a 15% return that you need.
TastyTrade is a great broker, and I personally use them.
3,750,000 at 4% in T-Bills is 150k. Otherwise keep your day job.
what account size do you recommend for using /es vs /mes since the risk is huge? cool vid btw!
You want 2X your buying power being used in your account so /ES roughly $20k and /MES roughly $2k
If all rules you have mentioned were followed, can you provide details on ROI and drawdowns for the years 2018-2023? It does not have the exact. I just would like to get an idea on what would be a reasonable expectation from this strategy.
You can expect that 99% of the time you will make $1000 and 1% of the time you will loss $200,000. This trade will not let you sleep at night.
I provided one generic backtest but don't have a backtest with the rules provided because it won't allow it. You can most likely expect a 99% win rate where you win $1,000 - $1,200 and will lose $4,000 - $6,000
@@AustinBouley You are correct in terms of expiration data, but when IV spikes 20% vega will make your theoretical loss feel huge and if dont have the stomach or the buying power to stay in the trade, you will blow up your account. I beleive the 1122 is way safer.
So how did the 112 do today???
Did you watch the video? Obviously not or you wouldn't have asked this dumb question.
They dropped hard but they are still profitable! My returns dropped from +60% to +30%.
However, I entered another 112 towards the lows yesterday and am already up $200 (14%)
Great job teaching how to filter out the noise. Else, folks can blow up their accounts.
Every options strategy can blow up in your face if not managed correctly
can you use spx on this system, and what type of account size do you need, also how to work how many contracts
Yes you can, but SPX has huge margin requirements for little payoff. That's why I recommend only trading this with futures.
Is your strike selection mostly delta based? Isn’t the margin insane on this, naked 1 ES put is like $20k margin.
Correct, it's delta based
How much capital do you need to put on a weekly strangle
100% depends on the asset you are trading... /ES = $10K per trade, /MES = $1K per trade, etc
Are you available to talk on a zoom call? I would love to discuss more details on this.
If you clicked the link below and joined my free community, you would see that I am doing a live zoom Q&A call to answer any questions people had over this first lesson!
In your video, you use 90DTE, but your writeup does it using 45DTE.......why the discrepancy?
It was my mistake, but has been fixed :)
@@AustinBouley so when you say its been fixed, should it be 45DTE or 90DTE? Because your write up still shows 45DTE
damn owning spy still beats it
It beats SPY, the backtest doesn’t factor in buying power requirements for futures
@@AustinBouley thanks for the information! love your channel
Could you do this on the SPY or the QQQ's
No, only works on futures
The trade type(1-1-2) will work on all underlyings. Its a Put debit spread + Naked Put. Even the bollinger bands are agnostic to the underlying. You can use the same methodology.
So the auto trader requires us to give you our login and password to our account? It is not a piece of software we download to our cpu?
Yes, you have to enter your credentials to connect to your broker. We follow and use all the up to date security protocols and delete your credentials from our system as soon as your account is validated.
TOS does allow you to put this as 1 trade.
Great to hear! Thanks for letting me know. The auto trader will handle it as one trade for you even if your broker doesn't
Market doesnt fall because it climbed past a bolinger band. It falls due to economic disruption such as housing bubble crash, covid, oversized fed rate hikes, war.
Correct, but the largest pull backs tend to follow sustained periods of optimism and overextension.
does the auto trader work in TOS?
would need to because you cant do stops on futures!
No, it doesn't. Charles Schwab isn't allow new integrations during their migration and other company objectives right now.
Exorcise Extreme Caution with this. Trade very small
All trades have risk, that's why I advocate always having stop losses.