Why TradeMachine®
    • 14 May 2024
    • 3 Minutes to read
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    Why TradeMachine®

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    Article summary

    This explains that with the power of TradeMachine® a generally losing strategy can be transformed into a winning one with significant returns using the proper tools and data, which is why users choose TradeMachine®!


    Transcript:

    Ophir Gottlieb:

    Let's just start with the thing we started with, which is Microsoft just getting longer call kind of blindly. Just like never trade earnings, just get longer call for, I think I did 30 day options, right? So again, I don't care about this strategy. I want to show you the closing rules. So if you do nothing, this is just closing odd expiration. Okay? But what if you want to do more than that? Well, there's lots of ways you could set closing rules. Another one is to say, stops and limits. Let's say a 40% stop, a 40% limit, that's one. So the trade will close when that condition happens, or 30 days, whichever is the soonest. Okay? But there's other things you can do too. You can actually go to a technical close and say, I want to close. I'll say, if the stock price goes below the 200 day moving average, I want to close.

    So now there's three closing rules here. One is when the 30 day option expires, it might not be exactly 30 days. The other is if there's a stop and a limit. And the third is if the stock goes below the 200 day moving average. So now I've layered several different closing, and I dunno if you've been seeing, but the returns have been going higher and higher is I have better closing. That's how you would do it. There's several different ways to do closing rules. Another way to do closing rule is when you're doing custom earnings, let's say you want to do, I've talked about before, earnings. So let's say after earnings. If you want to get open a position one day after earnings and close it 30 days after earnings. So the closing rule here would be 30 days after earnings or when the option expires or when the stop roll limit has hit, or if the stock goes below the 200 day moving average. Now I've layered four different closing rules and all of a sudden it's positive. I dunno if you guys saw that the startup as a negative 50% return, negative a hundred percent return. All of a sudden with the right closing rules, we've got seven out of 12 winning and 247% return. This is getting a longer call in Microsoft one day after earnings closing 30 days after earnings. So it's the post earnings momentum with several different layers of closing rules. In this case, worst case when the option expires

    Or if for 30 days after earnings, or if the stock goes below the 200 day moving average, or if a stopper limit is hit. So I've just layered four different closing rules on a strategy which didn't work and we turned it into a winning strategy. There are people who are trading blindly and getting by and calls at Microsoft, let's say, and that's fine if you want to do that, but wouldn't you want to know how it's worked in the past? Because I just found something that requires foreclosing rules in specific timing, and I took generally a losing strategy into something that has basically made you rich right now. Again, Microsoft has been in this magnificent seven bubble for three years. So I'm not trying to convey that this is necessarily a good strategy, but I implore you anyone in the world, how else would you know this?

    I just layered foreclosing rules with special timing and it took me, how long did that take me? 24 seconds. Okay, do that anywhere else in the world. Show me anywhere. I mean, literally you have infinite money. Show me anywhere else in the world you can do it. It's okay. You cannot, this is the power of trade machine. And can you imagine if I added skew and kurtosis to these results? Actually, let's do it anyway. So this is, look how quickly you can test things in trade tradership, right? So look, you're trading half as often and getting 145% return. Okay, someone else, show me where you can test. Sorry, four closing rules, three open rules. How you can get these results. You can't. That's the power of tradership.


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