Do you have a Google Group?
Yes. You will find these and other questions answered there. You can also
ask your own questions and get them answered in that forum if you wish.
Simply click on the link below.
Why is your strategy so consistent?
I think there are four main reasons why my strategy is consistent. 1)
I start with a trade that is adjustable. Most of the common trade
types start with a structure that is not very adjustable; especially
once the trade gets into trouble. 2) I enter the trade planning to
adjust the trade. Most options traders only think about adjusting when
they find that their trade is in trouble. 3) My profit target is only
a portion of the total available profit. Waiting around until
expiration week to get 80% of the profit in a trade simply gives the
market more time to make an adverse move. 4) The last and less
important aspect is what I adjust with and when I adjust. This is the
only thing that is different between the original strategy and the aggressive
strategy. The adjustments on the aggressive strategy are just a little more
aggressive than the adjustments on the original strategy.
"Just wanted to let you know that I closed out this month’s trade this
morning at a $200 / position profit. Used the...method. As you know,
this was my first trade using your methods. In retrospect, even though my
execution was far from perfect, the result was as promised. As you said, the
trade is fairly robust. It was a pretty stress free trade."
- LM
Why do the monthly performance results differ from the broker statements?
The backtest results match exactly what I demonstrate in the course
videos using real data from the past. The broker statements are the
result of real time trading in a real account. January thru August
2009 was using the original strategy and October thru December 2009
was using the aggressive strategy.
"I received the DVD, thank you the material is exceptional!!
Thanks again for putting this all together."
- JR
Can you provide more detail about your strategy?
I teach a specific index options strategy that is rules based and
easy to trade. I start with a complex, multi-legged position and then
adjust it as the market moves. The idea is to make money from the
management of the trade instead of from what I trade or when I trade
it. All legs are in the front month and the trade is always a fixed
risk/margin trade.
"Wanted to let you know that I closed out this month w/ 7.8 pct... easily
paying for the course. I believe in the business world they'd call that...
a "helluva" good deal!! Profit came in 4 days even after slaughtering my
fills and execution was sloppy at best...."
- CB
How is the course delivered?
After you order, the course DVDs are shipped to you via overnight
express mail. The course consists of 18 hours of video. The course
starts with some videos on theory and the rules. The strategy is not
that complex and this section represents a small portion of the 18
hours. The real benefit of the course is that there are also 42
monthly trading videos where I go back in time and trade the strategy
forward one day at a time using real data from the past. The
performance of each of these trading months are reflected in the
Monthly Performance numbers posted on the website. Once you are done
with that, there are not many gray areas left.
"I've been both backtesting and playing around with the strategy and it
has performed excellent using OptionVue and real trading.
It sure tests like a champ."
- DD
Do your results include commissions?
Yes. The results do include $1.50 per contract commissions.
"Great October video... that was easy money!"
- IS
How much money do I need in an account to trade your strategy?
To trade the original strategy you would need at least a $5,000 set
aside to trade one unit of the strategy. With the aggressive strategy, we use
a $4,000 set aside. Not all of the $4,000 is used up in margin. There
is always a cash component available to make adjustments. You can
trade as many units as you wish.
"After a few years of learning (and re-learning) options... I feel I’m starting to have a deeper understanding of it thanks to you."
- RM
Why didn't you use all of the $30k in the demo account?
The demo account was setup to demonstrate trading one unit of the
strategy. The $30k balance is simply the balance of the idle account
that was transferred to thinkorswim to setup the demo account.
"Thanks for another great month I just got out with a 5% profit. Hope you have a great day"
- DP
Does the strategy work on stocks, futures or stock indexes?
In the course, I teach and demonstrate the trading strategy using the
Russell 2000 (RUT) Index Options. I believe the strategy could be used
on other trading vehicles but I do not cover that in the course.
However, I do discuss what factors should be considered when choosing
an underlying trading vehicle.
"Just FYI, I was able to exit the trade today at 11:48 PT at a
price of...for a 5% profit. I was watching the market today
and saw it was getting close to the exit point so I submitted
the trade and about 45 minutes later it was filled. This is my
second month trading your system now, and I am so pleased with it.
Thanks so much!"
- GJ
What would cause a loss with your trading strategy?
When you enter our trade, your broker will charge your margin. That
margin value represents real risk. Even though we have not had a loss,
that does not mean our strategy is risk free. However, our position is
actively moving in reaction to market movement. Therefore, our
position is not just a sitting duck waiting for the market to do
something in particular to hurt us. To produce a loss the market would
have to move in some very specific ways, a number of times. This is
improbable and would be contrary to normal market behavior. The point
is that, compared to many of the other options trading approaches, our
strategy provides the most improbable chance of loss. Not impossible
but more improbable. Until you actually learn the strategy, this may
not make complete sense to you. However, once you see it in action,
you will completely understand your risk and you will have the tools
to manage that risk.
"Thanks again, You did an excellent job of giving us our money's worth."
- DD
Are there any prerequisites for the course?
You should understand the basics of options trading and in particular
the basics of options spread trading. We do not cover the basics in
the course. If you need this kind of training, I would recommend The
Options Institute
site:
The Options Institute
"Thanks John. You are truly a man of your word, which is rare nowadays."
- DT
Is the strategy hard to follow?
If you have any options trading experience, you will find the rules to
be very simple follow. The strategy is rules based and easy to trade.
"I can't thank you enough for what this method has done for me. I got in again on Monday and closed it out the same day for a 7% gain. Thanks again for everything, you don't know how much this has changed my life!"
- GH
If a trader follows the rules as outlined in the course, should his results
match your results?
Individual results will vary due to the specific timing and execution
of orders. The strategy is very robust and differences in timing and
execution should not dramatically affect the profitability. However,
it might create differences in actual results.
"I didn’t have time to put the trade on yesterday evening so
I put it on this morning. By 3:45 PM, I closed it for an 8%
profit. Just thought I would let you know."
- LK
In order to implement your strategy, what software, data or other information
services do I need?
You do not need any special software or services other than possibly
your broker's software.
"I just made $489 dollars of real money. Again, thanks so much for training,
neat stuff."
- DT
Do you recommend a specific broker?
I do not recommend brokers. However, I do use the thinkorswim software
as an example in the course. Commissions are insignificant when
compared to our profits so it is not important to find the broker with
the lowest commissions. A decent options broker with decent execution
and risk based margin should be just fine.
"I'm determined to make this work as part of my monthly cash flow.
This is the first strategy that really seems to nail profit
consistently... So far, as stated, it really works great."
- DD
How much time do I need to devote to the monitoring the strategy during the day?
There is potentially some involvement required during the trading day
to manage the position correctly. However, you should not have to be
in front of a computer for the whole trading day. We adjust our trade
when certain price points are hit. These price points may or may not
be hit on any given trading day. On some days, multiple price points
might be hit. In order to keep track of the market, I and many of my
students use an iPhone or a Blackberry. When our price points are hit,
you can either call the trade in or use a remote computer of some
kind. I and many of my students use a Netbook computer with a Verizon
wireless modem or some similar setup. When our price points are hit,
we are not burdened with having to make decisions about what to do.
Our trading plan is set before the day starts and when our price
points are hit, all we have to do execute our trade to make the
required adjustment to our position. Since we are not in a trade all
month long, the time burden is very low overall. In summary, you do
have to be available during the trading day to make adjustments but it
can be done remotely and the actual execution of the adjustments does
not take a lot of time or energy. In addition, we are only in the market
for a small portion of the month so we can relax for most of the month.
"I just wanted to let you know that I am very happy with the way you
handle things... I have to say that the money paid for your service is
very well worth it... this year I will keep the simulated trading in
order to get the whole process as second nature and then I will happily
jump to the real deal. Thanks for everything and keep the great job."
- IS
"I made a good profit on my first try this month thanks."
- TG
"Great to know... thanks for showing me what I am still not
able to see... it is amazing how many variables are hidden in the
option trading... but thanks to your strategy it seems that you have
everything very well figured out. Thanks for the great info."
- IS
"I have been trading options for about 5 years and have spent countless
hours and energy learning the good, bad and ugly of option trading. John, has
developed a terrific strategy that has not only backtested fantastic, but is
performing live exactly as John has described it. This one strategy has
become the foundation of my trading style."
- DD
"You're brilliant! This...thing seems to work. I backtested it in OptionVue for the
August trade - started the trade on 8/19 and exited on 9/1. Experimented
by going past 9/1 and the trade keeps making money!"
- AG
"Another great month got out this morning using the... Have a great week."
- DP
"Thanks for such a great course and your support this year!"
- KB
"This month was my first month using real money. Last month, I papertraded and didn't use your last day adjustments and still came out a few dollars ahead. This month I used one of my real accounts. Based on current events, I was nervous about going into the weekend so I went ahead and closed my trade. I still made $2100 (around 3.7% return). Thanks again!"
- GH
"What a quick month I took your option trade on the Russell this morning and am already out with my 5% for the month. Makes for a quick month. I can't thank you enough for teaching me this strategy."
- JR
"Closed my May trade after only a day for over $350 in profits. Got a bad fill @ the open on my 1st adjustment, and @ one point had a drawdown of over $400, but sticking to the strategy paid off well."
- NA
"Just to let you know. I commenced and closed the May trade yesterday for a profit of 5%. Since my further funding was delayed, I entered a new position today. Again the market went in my favour & dramatically so, for a 13% profit. The knowledge gained from your course has already more than paid the cost of the course in the 2 months since I purchased it. Thank you."
- DV
"I was able to close the June trade for a gain today. I want to thank you for the support and the confidence you have given me. You have changed completely the way I trade options and I feel like I am in control of the trade all the time. I am looking forward to your Advanced Strategy."
- NR
"Closed my June trade for over $250 this morning."
- NA
"After studying the videos and paper trading a bit, I did my first live trade (June) and closed it yesterday for a profit of $370. The system works just like you said it would. I made a couple of dumb mistakes and still made a profit."
- DV
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