Stellar equity curve (attached) for the Dow e-mini, found through experimenting with the RandomTrader tool. The free educational tool can be downloaded in the file sharing section.
I am not saying it's a system, by any means. I am only saying use it to get a feel for what tended to work in the past. As well as what clearly DID NOT work, and unlikely to work, in the future. E.g. making 20 trades per day, and exiting same day.
As some people often like to say, "past performance is not a guarantee of future results"
Trade PARAMETERS which generated the curve:
1 YM (June 09) contract
1 trade per day, long entry
max holding period 10 days
profit target: 50 points
no stops
time of entry: minutes 190-200 of the trading session, i.e. mid-day entry
I wonder if this type of parameter set up would've worked on earlier months. If anyone takes a look at this, pls let me know.
I am growing increasingly nervous about using stops, and trying to look at options as a hedge. The bottomline on that, though, is that you have to know what you're doing which is sad news
.
There's an article 'scalping option gammas' by dean mouscher in futures magazine (sept 07). I have downloaded it, but still haven't read it.
Options nomenclature is a little intimidating, it took me almost a year to understand what delta is, let alone "gamma".
Seriously though, if any one has ever dealt with "scalping gamma", could you pls explain in human language what the bottom line is? Among other things, it would be interesting to know if it actually works
Thanks
Dan
I am not saying it's a system, by any means. I am only saying use it to get a feel for what tended to work in the past. As well as what clearly DID NOT work, and unlikely to work, in the future. E.g. making 20 trades per day, and exiting same day.
As some people often like to say, "past performance is not a guarantee of future results"
Trade PARAMETERS which generated the curve:
1 YM (June 09) contract
1 trade per day, long entry
max holding period 10 days
profit target: 50 points
no stops
time of entry: minutes 190-200 of the trading session, i.e. mid-day entry
I wonder if this type of parameter set up would've worked on earlier months. If anyone takes a look at this, pls let me know.
I am growing increasingly nervous about using stops, and trying to look at options as a hedge. The bottomline on that, though, is that you have to know what you're doing which is sad news
. There's an article 'scalping option gammas' by dean mouscher in futures magazine (sept 07). I have downloaded it, but still haven't read it.
Options nomenclature is a little intimidating, it took me almost a year to understand what delta is, let alone "gamma".
Seriously though, if any one has ever dealt with "scalping gamma", could you pls explain in human language what the bottom line is? Among other things, it would be interesting to know if it actually works
Thanks
Dan
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