My most important realization on this trade is that I have to improve how I adjust the position. As I mentioned earlier in the blog, the fact I have an intra-day trading background has not helped me here with this income position. I'm leaving my income trades alone, unless they get to some really critical points. One way or another, this trade was adjusted sooo many times, and still lived to tell the tale, great leasson learned and I really liked the strategy.
The biggest issue was the position's size, I adjusted too many times and ended up paying all my profits in commissions. When I exited the trade, I was up about 5%, all that went to close the trade, and it finished at B/E.
Started: 05/19/09
Finished: 06/16/09
Duration: about 1 month
ROI: -0.68%
05/19/09
05/20/09
05/21/09 - Adjustment mistake (neutralized delta by too much)
05/22/09
05/26/09 - Right back at the center
05/27/09
05/28/09 - Back in profits
05/29/09 - DIA Gave it a rest
06/01/09 - Fully hedged *again*
06/02/09 - Adjusted by moving call spreads up
06/03/09 - Recovery in P&L
06/04/09 - Added long CALL (likely to be unecessary)
06/05/09 - Avoided hedging with futures pointing up at opening (good call)
06/08/09 - Adjusted when DIA moved up, not necessary
06/09/09- Increasing profits
06/10/09- Adjusted down-side, finished day leaning negative deltas
06/11/09- Got whipsawed intra-day, became frustrated by profits evading
06/12/09- Back in the green
06/15/09- Slowly exiting (at this point, commissions were a heavy burden)
06/16/09- Closed trade (Profits evaporated due to closing commissions and execution)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment