Strategy

Back Testing

I have performed more than 12,000+ hours of back testing. I am always progressing with the ever-changing markets and make back testing a part of my daily routine.   

Delta Nuetral

I am not distracted by pretending to know where the market is going next. Although I have positions that benefit from a strong directional move, my main strategy is unbiased to direction. I hold both long and short Options positions ranging in duration from one month, to over a year. I have a long-term outlook on options and use the underlying to hedge off risk as the markets move.

Diagonal Spread

I discovered early on that trading both long and short positions in multiple Options expirations simultaneously was one of the most powerful hedges. I see the markets as 3 dimensional. I can profit from directional moves, the passage of time with Theta, as well as a calendarized spread between different options expirations.   

Long Theta

My bread-and-butter income is from long theta. Since options prices and volatility are corelated, I carefully and systematically adjust risk based on the market environment. I trade Options on Futures due to their large liquid markets, along with the added benefit of the 1256 Contract tax advantage.

Multiple Strategies

I run multiple strategies simultaneously. These strategies are non-correlated and have different reactions to market conditions. This creates more consistent returns and less drawdowns.  

Bullish Exposure

Although my primary focus is delta nuetral, I also hold long term bullish positions in correlated ETF’s. This long exposure is defined and is financed through the collection of dividends as the positions mature.

Dedication

I have dedicated my life to go above and beyond what is expected of me. I like to under promise and over deliver, and I don’t take my trading lightly. I have spent tens of thousands of hours in the pursuit of perfecting the art of trading. Anyone can be lucky for a short period of time, but the truly excellent trader is one that is always adapting to market changes while never motivated by fear or greed.

I have studied just as many failed Options trading funds as successful, and learned that the key metric to success is size. I have thoroughly back tested hundreds of thousands of scenarios and settled on what I think is the most consistent way to trade Options. To prove my theory, I have traded this approach with every penny I have to my name to illustrate my confidence in my system. I also believe the only way to be a successful trader is to follow a very disciplined systematic approach to eliminate the temptation of predicting the future in the markets. Although I have my system in place, I am constantly seeking to improve my returns by back testing and studying daily.