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Hi all--
I'm (obviously) new to the list, and very familiar with Fontanills and Delta
Neutral trading. I have used it for several years now. However, I am very
new to
tradestation, -- where is a good source to actually learn how to program in
Easy Language?
> On the surface it looks like a conservative and tremendous way to
> make money and be correct maybe 80-90% of the time.
It is a conservative and tremendous way to make money, and will be correct
90% of the time if used properly. It is not so much a way to make
tremendous money, however. Small risk, small reward.
> However...I call it the "wash" rule. Every strategy out there is a wash
> (break-even or loss) unless you have some kind of edge over the majority.
> Just doing delta neutrals is not an edge. What happens is that you make
> money...small amounts over and over until the markets become
> unglued and you
> get slammed for everything you've made and more.
> You are in the market most of the time...very vulnerable for the big slam.
There is an edge build into the system -- but, there are few entry signals
generated, and out of frustration there can be a tendency to enter trades
prematurely.
This is really a straddle volatility strategy using options combined with
futures.
Also, because of using a high number of contracts, profits can be eaten up
in
commissions and slippage quite easily. This style of trading works better
with larger account.
Hope this helps, Raven
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