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75: Portfolio Drawdown Stats From 44,801 Backtested Option Strategies

75: Portfolio Drawdown Stats From 44,801 Backtested Option Strategies

FromThe Option Alpha Podcast


75: Portfolio Drawdown Stats From 44,801 Backtested Option Strategies

FromThe Option Alpha Podcast

ratings:
Length:
29 minutes
Released:
Dec 20, 2016
Format:
Podcast episode

Description

Show notes: http://optionalpha.com/show75 I've been trading publicly on Option Alpha for more than eight years now, and I'm still baffled by the number of investors who get absolutely shocked when option trading portfolio drawdowns occur. I'm talking ALL CAPS emails, mind blown, ripping their hair out shocked that a trading system wasn't a 100% probability of success. And while losing money is by no means "fun" or "exciting," it is, however, part of high probability trading systems.   In fact, you are guaranteed at some point to have a drawdown or streak of losing trades. It shouldn't come as a surprise, and it's why we are so big on balancing portfolios and trading small positions to minimize the impact on your account. Even though we know we'll have portfolio drawdowns from time to time, we also know that we'll end up generating above average returns if we stick with it long enough.    The concept of trading in a positive expected outcome system and being persistent through drawdowns isn't based on my opinion or assumptions; it's backed by math and the 44,801 backtested option strategies I'm going to cover in today's show.   Many of you know that over the last year we've been building and developing options backtesting and optimizing software that is going to be a complete game changer for traders just like you. In this show, you'll finally start to see just a small glimpse of the power behind backtesting and modeling hundreds of thousands of option strategies. It was by far one of the most anticipated shows for me to record and I hope you find incredible value in listening.
Released:
Dec 20, 2016
Format:
Podcast episode

Titles in the series (100)

We are on a mission to help you make smarter investments and trades – it’s just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.