Overview: Finally. The manual backtest of the Theta Breakout system produced some pretty interesting results and the general take away is that the system “works.” That being said, this is by no means a recommendation to take a trade and the results are being presented for educational purposes. I will also note that the system […]
Overview: Today I’m doing a video recap of the open Theta Trend options positions and the monthly rotation system position. Equity markets have been moving slowly and seem to be consolidating around all time highs. Fortunately, we’re short options on both sides of the market and the decay is coming into the positions . . […]
Recap: I recently posted the rules for Theta Breakout, an Options Trend Following Trading System. The system sells out of the money naked options (or credit spreads) following a new 50 day Donchian Channel breakout. For example, a new 50 day high would trigger the system to sell out of the money puts. I’m currently in […]
Overview: Well, we’re through Thanksgiving and it’s time to take a look at the Top Performing ETF’s Monthly Rotation System positions. As part of the Trend Following portfolio, I’m taking positions in 2 of the Top Performing ETF’s measured by a 1 year average rate of change. I currently have a position in FAN from […]
Overview: One of the biggest challenges in trading is knowing how big to trade or how to size positions. If you knew with 100% certainty that your next trade would be a winner, you could theoretically go full tilt boogie with leverage and have a big payday. The reality of trading is that we don’t […]
The General Idea: Better, faster, stronger? My initial thoughts about combining Trend Following and Options trading came about a few years ago after the 2008 crash. At the time, I was trading Iron Condors on SPY and IWM and trying to figure out why it was so hard. Apparently, when you trade a delta neutral […]