Jump to content

DAX WEEKLY OPTIONS SET AND FORGET STRATEGY


Recommended Posts

BUY STRADDLE EVERY MONDAY 8 AM.Put limit order and set and forget until options expiry  on friday or  closing day.


PREMIUM PAID FOR STRADDLE IS 200 , THIS PREMIUM IS HIGH , WHEN VOLATILITY IS LOW , PREMIUM WILL BE LOWER AT 120 PIPS , THUS ELIMINATING MANY LOSSES FROM THESE CALCULATIONS

 

Using various betting sequences  , and taking profits  sequences , the following results were obtained on   rough back tests.The strategy is still in development. 

 

The following results were obtained , using £100k account

 

I am looking for hisrical  option prices for straddle  traded on monday am or tuesday am , on receipt I willl be able to post more

 

NB EDITED POST

I have actually found that by trading long  calls  only,  I  can get better profit .read more 

 

http://www.trade2win.com/boards/indices/224294-profitable-support-trading-indices-dow-dax-nasdaq-s-p.html#post2920018

 

 

accurate resultsIG.jpg

Link to comment
  • Replies 77
  • Created
  • Last Reply

Top Posters In This Topic

Interesting, where is your end target for the move at?

 

I currently have a position on 250 point credit from the 23 Mar turn ar B/E stop preotection but I think I'll hold that for the medium term (or at least until I see a bit more clarity on the move).  Got another 100 points from 9am this morning (2 positions) and mulling a split bet approach such that I would cash 1 and hold the other at B/E.  I think there is a bit more to go on this move before the US market begins to come alive and may provide a bit of a rally before another more significant drop.

 

What is your analysis telling you on the Dax?

Link to comment

Hi  Mercury

 

This is a set and forget strategy  , place limit orders on monday  on cash  , after buying straddle   and keep taking profits on the straddle  with cash limit orders , and run cash orders if filled for 300 pips  or expiry.

 

i  do no try and guess direction on this strategy

Link to comment

When you run your profits on dax , it can move 300 pips in a day  , and it does it frequently  , that is when you make money.If you are patient , these profits will come  , and I got 3 more days  plus nfp

 

I like to run my profits  , when I catch the right side of dax

 

Most traders can not run their profits  or cut their profits  and underperform

 

 

Link to comment

Hi oilfxpro 

 

I will have to re-read this thread, but just jumping in on the last few posts - what do you mean when you say you make "pips" with the DAX or your option premiums? 

 

To me, pips are for FX and are 1/1000's.  Indexes, or other commodities use points, which are normally 1/100 or 1 cent say, or 1point on an index (multiplied by the dollar value per point of the index to get a cash equivalent).

 

300 pips on the DAX is not the same as 300 points then - which is why I ask.

And 300 pips for an option price (whatever that might be - 30cents?) is not the same as $3.00.

 

Yet seems like you are profitable whichever metric you are using.  Keep it up.  And thanks if you can clarify this small question. 

 

Link to comment

i had  9950 straddle  long , I  have now locked away 96 pips  from  92 pips   premium left .My net profit is only 4 pips  so far with 3 days remaining and nfp 

 

I still have 10050  weekly call  long

 

THE BENEFITS OF SET AND FORGET STRAEGIES (This is not a link to buy education)

 

http://www.learntotradethemarket.com/forex-trading-strategies/set-and-forget-forex-trading-keep-your-day-job

 

set and forget mechanical strategies can  eliminate  indicators , t/a , phsychology , execution and other issues  , these are  the oneswhere traders fail  

Link to comment

Hi  this is a really interesting idea.  May I just clarify.  I'm takling this to be a Long Straddle.

Would you Buy a Call & Buy a Put on the contract closest to the current level of the Index.  so right now the index is at 10304 so perhaps choose the 10300 Call and Put.  You pay premium on both and are in profit providing the index moves in either direction by enough to cover the cost of the two premiums paid - which by your trading experience/analysis it does. 

Thanks C

Link to comment

Hi  Condor

 

I usually use cash   to lock away option profits   , rather than close option trades 

 

xample my straddle is making 100 pips  on the long  , I go short cash  100 pips higher.

A straddle is  at the money

 

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=options+straddles+strangles+examples

 

It does not always cover the premium a,if volatility is low, these are losing weeks    , but when you get your winning weeks  , I run them  for  300 to to 500pips   (i failed this week on first trade , because I had other positions long)

Link to comment

Thanks  that makes sense (Long Straddle) .  So you watch progress during the week and if it moves as per your example..

 

'my straddle is making 100 pips  on the long  , I go short cash  100 pips higher.'......  i.e. The Buy of the Call (the index has gone up by 100 pips) ..... you [go short cash 100  pips higher] .... sorry don't quite get that...would you mind expanding that part ...  ( I get the idea you are locking in the profit ?)

 

C

 

 

Link to comment

I buy  9950  calls and puts  for 180, at begining of week

price goes to 9800  or within 10 pips , 9810  long cash dax , target 300 pips profit 

 

price goes to   10050  , short cash  to lock away profit on call  ,  target 300 pips profit  on cash short  ,let option expire

 

Link to comment

Condor

 

You need to back test your strategy for at least 2 years , whatever variations you use

 

I am using   4 strategies around  the weekly options , straddles  , straddles+ cash , strangle for breakouts  ,strangles/cash  for counter trades , so FOLLOWING ME WOULD GET  CONFUSING.

 

I back tested allmy strategies on excelfor 2 years

Link to comment
 
 

yesterday

i had  9950 straddle  long , I  have now locked away 96 pips  from  92 pips   premium left .My net profit is only 4 pips  so far with 3 days remaining and nfp 

 

I still have 10050  weekly call  long

 

I decided to take 64 puips       profit on cash short  , this was not written in system (market  is biased  long ,  )    , this leaves me with   32 ticks risk on the table , with the 9950 straddle in place.There  are many phsychological reasons  why traders  can not follow systems to the rule

 

 

 



Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
×
×
  • Create New...