Thursday, March 11, 2010

03/11 NDX Fast Butterfly (from 03/08)

This is a great example on how the hedge-recover strategy can help soften the damage of the trades that do not work. This butterfly would be stopped out under my original idea (-8% ROI), however, because I hedged the trade it is now showing me -4% ROI. Once again, the recovery butterfly is not yet helping, as the hedged+recovery position is down -4.5%.

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