Day Trading Stocks & Futures

Riskyman

Well-Known Member
Sorry boss. Market in 2014 was different (6000 - futures) than in 2019. But its standard practice to backtest futures from 2014 to 2018 to trade in 2019. The prices dont matter actually the objective is to find situations where many times a certain tendency exists. That becomes a good probability trade. High probability = high probabily of certainty if its executed without fail for a good number of times.
No need to be sorry but now you are talking futures data.
We were talking about option pricing where you are saying you need combined premium of different atm to otms. Some confusion.
 

lemondew

Well-Known Member
If the combined premium of ATM options when premiums are high generally expires with profit then that becomes a tendency. A study has to be made to check if that tendency has been existing in last so many years. And it exists in past few months. What percentage of times its been profitable. By what amount the profit supersedes the loss or other way. Whats the consecutive loss trades. Is it acceptable. Whats the return against the margin blocked. That in my opinion is a good study and forms the basis for further studies in that direction.

Madan has written a good thread on same. In the end its profit/loss that is made after a series of trades that we are interested in be it futures /options.

Sorry if your among those traders who can find near certain trades which generally is always profitable i am not in that league . I ll end it here.


Well now you are talking futures data.
 

Riskyman

Well-Known Member
Madan has written a good thread on same. In the end its profit/loss that is made after a series of trades that we are interested in be it futures /options.

Sorry if your among those traders who can find near certain trades which generally is always profitable i am not in that league . I ll end it here.
Lemondew bhai, Please forgive my poor understanding of options and the confusion in my mind with your references to futures/options.
Whenever you manage to build this model, please kindly share with us for better understanding. Will be helpful for many traders. :up:
 

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