This Is the Best Way To Profit From 0DTE Trades Right Now | Options Backtest

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[@mbnesbitt]

Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.

[@hamzahamza-bz3rf]

People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.

[@ufuksenol2005]

Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.

[@PineHosting]

Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.

[@ysareyes]

Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things

[@icucmerc]

Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit

[@stevenrod7]

I do the same but not that far out of the money, I like selecting the Delta with the highest Gamma.

[@TheDLR2662]

Trying to follow along and understand the mechanics of the trade as I've only sold cash secured puts or covered calls. Are you selling the strangles or buying them at the mentioned Delta's? Do you put on the trade at market open? Any thoughts anyone cares to share will be appreciated. Thanks.

[@lauriejones7834]

They are selling. Probably at open but they need to clarify.

[@TheDLR2662]

@@lauriejones7834 thank you for answering my ?

[@user-ek4ib1ow7p]

when you're publishing these "average P/L" numbers....are these an average of "All the times you Win" or the averages of "both the times you win and lose" ????

[@Prakashkumar-xd3ry]

Average P/L means Average Profit/loss

[@chriskelly4630]

My broker will not allow strangles. What should I trade instead?

[@blackmagick77]

They had a study not too long ago about buying wings 20$ and it very closely simulates a strangle

[@SkylineR34EvoX]

Brokers lol

[@ehk8029]

You can do irons condors or butterflys

[@-mr3puttz-310]

why only strangles all of time? Lets see studies with verticals

[@brucea550]

Because strangles aren’t directional, you’re selling ‘neutral theta’.

[@kiwihello2]

Since CVaR is the average of the 5% worst trades, why would anyone trade this. In one out of every twenty trades you will be losing 100x your average daily P/L. Who would ever want to do that? Risk 100 to make 1 and you are guaranteed to get the worst (100) loss every 20th time.

[@lauriejones7834]

I dont think its a matter of it happening 5% of the time. They are backtesting over a long time period and likely not ignoring events like CPI, FOMC, NVDA earnings etc. I just looked at a 20delta 0DTE strangle with the current expected move per day of 0.4%. A 2% drop would cause a 4k loss. There hasnt been a 2% intraday drop in a while but is certainly a possibility. Would think that staying away from event risk would help but if truly managing max loss would need to sell IC instead or use stop loss or immediate hedge if price breaks a level etc. It would not be prudent to ignore the potential for an event to trigger intraday.

[@user-ek4ib1ow7p]

wondering the same thing. i asked in this comment section if the "average P/L" includes loss days. i assume it does, otherwise they wouldn't be so positive about this strategy, but i'd like to be sure. "P/L" of course means "profits AND losses" so its probably implied. over the year of data, if you average together all of the p/l's of every trading day, that's your result.

[@kiwihello2]

@@lauriejones7834 CVaR exactly means the average of the 5 worst trades out of every 100. Basically im their back testing the bottom 5% worst trades averaged the CVaR they display. Notice it can be worse. That's just the average.

[@kiwihello2]

@@user-ek4ib1ow7p average P/L definitely means including losses. But even with that, would anyone want to make $100 on average daily and in one out of twenty days risk $10,000 . Let's also think of the account size one needs. If the average loss in the 5% worst cases is $10,000 (scaled to $100 average P/L) do you have to trade with $100k? Possibly... More? The CVaR is just the average loss (of the 5% worst). What about THE worst loss? $12k? $15k?

[@brucea550]

@@lauriejones7834 I think their rule for closing trades that reach 25% of max profit helps the odds in their favor.