Is this backtest related to a 15 point wide V and 3 * 25 wide long butterflies ?the updated Schwalbe trade will start with the beginning of next quarterly option on Monday, December 23rd.
here are some analysis of the new trade, only little but very effective changes were made, like a smaller "V".
View attachment 2263
and here the data:
View attachment 2264
comparison to other asset classes:
View attachment 2265
hi Randy here the screenshotsThanks for sharing. The trade looks great now. What did it look like on Oct 1st, 2nd, and 3rd?
hi Chuck. yes it is possible to buy back the left side which is cheaper. i have an actual trade like this running with a limit order for buying back.Hi Igi, Thanks for sharing your Schwalbe Trade. I like your approach in keeping the fat tail risk at a minimum. I have a couple of questions:
1. When you adjust to decrease the fat tail risk you buy back one of the credit spreads you sold earlier. Have you considered buying back the left side credit spread instead? It will cost you less.
5 Nov 2019
SCHWALBE: a new limit order: i will BUY (!) a PDS 2825/2800 for $0.95. it´s the lower side of "A" !
yes i dont adjust if i made NO adjustments in A which means price is running up right from the beginning as for example in dec 18 or sept 17. If i adjusted what means sold a PCS below min 1 % from entryprice and price is going up and buying back is getting cheaper for the A (move up AND loss in time value) i try to buy back for less than 50 %. only exception: when i sold 3 A´s then i buy back soon the last because the fat tail is at max risk and i want to reduce the risk asap. then it can be higher than 50 %. Buying back for more than 50 % "rebate" is also possible only with loss in time value after some weeks, if the price doesn´t move.Second question
2. You said you don't adjust if the market is above the sea of death. I saw that in the trade in this thread you did adjust while the market was above the sea of death..... buying back some "V" butterflies and/or buying back the fat tail credit spread. These adjustments eliminate risk which makes sense. What triggers those adjustments.... a time frame, a price target or something else?