M3 - The best strategy?
- Thread starter Neri
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Michael
New member
I have taken John Locke's M3.4u trading program and traded it for the past two years. It is a scaled down version of the classic M3 strategy with fewer adjustments. In fact, John usually teaches and tracks it in 2-lot trades compared with 10-lot or more trades for the M3. It is a broken wing butterfly trade on the RUT usually put on about 55 days to expiration. Adjustments are made based on delta ranges. It works well in neutral to bullish markets. I continue to trade it to this day. Cheers!
DaveN
Member
The M3.4u is a bullish-leaning trade, whereas the M3 tends to handle selloffs and adverse moves towards the risk side of the trade much better. As I understand it, the M3 is owned by SMB and John Locke doesn't sell the course. It does form the basis for the ROCK trade as well. It's certainly possible to work out the details and concept from watching the many free videos and John's Winning Trade series which cover these. The exact rules... I don't think those are for sale any more, but really you should be able to understand and develop your own guidelines, most likely.
Despite all the options "creators" production , BWB and similar spreads are very common among veteran option traders....I will not use the word "create" for the mentors work ..but rather popularizer.
And by the way if you mix water, cola ,sugar and CO2 YOU ARE NOT CREDITED FOR INVENTING COCA-COLA!
A good reading ..the extra you need to trade for a living..
www.learntotradethemarket.com
And by the way if you mix water, cola ,sugar and CO2 YOU ARE NOT CREDITED FOR INVENTING COCA-COLA!
A good reading ..the extra you need to trade for a living..
12 Trading Mantras from Trading Legend Mark Douglas » Learn To Trade The Market
Mark Douglas, one of the greatest trading educators and authors of our time, sadly passed away earlier this year. I wanted to write a lesson dedicated to him that discusses some of his most important teachings on the all-important mental aspect of trading. What follows are short summaries of...
www.learntotradethemarket.com
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True, but if you add something in addition like citric acid you get Pepsi which you are credited for
The same thing with bwb As far as I know Scott came up with the bwb strategy originally and there is no patent on it so other people made a certain strategy and call it M3 with certain rules and than someone else changed some of the rules and called it M3.4 but they both have the bwb as the main ingredient
There is a link to an M3 trade by Dave Thomas that was on CD back in 2018 but I am not sure if that is the same as the one that SMB is complaining about or is that something that Dave came up with and called it the same and changed some of the rules
This is really something!
My bet is that they have an employee who wants to show his usefulness.
There was a guy here, Moric or something, who claimed ownership of third order greeks. Maybe he works for SMB now?
Tom, did you get response from Seth yet? I expect some explanation and apology.
The fumiest outcome would be they start claiming property rights to Butterflies. Not probable but, in present times, possible especially if.... I leave it here
I know who you mean, (Morris). Yes there was a big argument here about someone who mentioned his website or trade type
He is not working for SMB he has his own website
The main thing with that guy was that anyone who took his course had to sing a strict NDA so basically no one is allowed to talk about his course
Not sure if there was anything similar with SMB otherwise they could come after anyone who worked at SMB and made a presentation here
Not sure if there was anything similar with SMB otherwise they could come after anyone who worked at SMB and made a presentation here
Michael, you picked it up exactly where I left it ...I think we all know that a certain Congressman from the district next to mine here on Long Island invented the Butterfly. Just sayin'...
Status, that Morris/Moric twist was a joke. It doesnt matter if he works for SMB or not. The point is that... you know... I better get inline now.
This will be too hard for some!
BUT......If you have done the following :
1)study the fundamentals of option trading ,play around with a software(TOS,ONE,etc),
2) subscribe to aeromir ,forums,videos, etc...and follow TOM advice.
3)Have at least 25K account.
but still want some "mentor" to tell you step by step how to trade to make some money...using fancy names( Butter %&/,Iront&ç%,double swing furry that,...
Go back and start again from point 1!
Happy Trading
BUT......If you have done the following :
1)study the fundamentals of option trading ,play around with a software(TOS,ONE,etc),
2) subscribe to aeromir ,forums,videos, etc...and follow TOM advice.
3)Have at least 25K account.
but still want some "mentor" to tell you step by step how to trade to make some money...using fancy names( Butter %&/,Iront&ç%,double swing furry that,...
Go back and start again from point 1!
Happy Trading
I know it was I was just trying to mention the facts for some of the new members who are not aware of any previous history or discussion
Sometime I see on other forums there are some discussions between existing members about something that only they know so any new members are left wondering what they are talking and perhaps feeling left out and eventually maybe tune out or not frequent that thread or forum
Steve G
Active member
John used to be a Prop trader for SMB years ago and has since gone out on his own. I have traded many of Johns trades over the years and have purchased many of his courses and had personal coaching from him. He is a great guy and he will be the FIRST person to tell you that NO single trade is the Best Trade. There are different trades for different environments and it is important that a trader learn when and how to use the one that best fits the situation at the time.
Most of Johns trades are "rules based trades" that he puts on month after month, these can be good, but ultimately what I have been teaching my students is more about reading a chart (basic technical analysis) and then determining the right trade for that market environment.
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Steve G
Active member
I think you are thinking of Morris Puma of SJOptions. I had dinner with him in SF a few months back, a nice enough guy, but certainly a different sort of character. I tried to get a better sense of what he was doing and how he was doing it (in other words - what was his secret sauce that he was selling) as i was a potential buyer, but after a 2 hour dinner I still had no concept of what they are doing or how they do it. He may have the golden goose or he may have nothing - I just have no idea, I did their 1 hour online demo and came away with more questions than answers and then never got answers to the questions, so decided to move on.
That sounds good in principle and I can only speak from the few videos he shows but sometimes he makes subjective adjustments which deviates somewhat from the rules and therefore making the trade result different from someone following the rules
Another problem I see is while you could select a trade based on the environment it usually does not last as long as the trade so than you have to adjust your trade for the new environment in the middle of the trade which looks easy for him but maybe not so simple for someone with less experience
Steve G
Active member
Status - I understand what you are saying - but campaign style trading will require adjustments in many cases - so I would suggest you find a way to build that comfort as much as possible. I am not saying I have the answer, but in my trade group, we analyzed and adjusted a trade this AM that we just put on yesterday and here is the type of analysis I share with students in that group - just to give you a sense of how it works: https://www.loom.com/share/be3f72cea0e3401cbbe4b60544d23be2
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