2021-08-11 · Episode 26

Go Ask A Trader · Episode 26

10 chapters
1:03:03

The episode explores various aspects of trading, including backtesting, delta adjustment rules, position management, and risk assessment. It covers real-time trading adjustments, simulated training, and capital management techniques. The discussion also includes strategies for managing trade size and capital reduction, along with the importance of adjustment evaluation. The episode transitions into commission negotiation with brokers, emphasizing the role of account size, ticket charges, and negotiation strategies. It further addresses margin regulations, account types, and risk assessment, highlighting differences in margin requirements across countries and brokers. Synthetic positions, margin issues, and ticket charges are discussed, with a focus on the cost of trading. The episode also covers adjustments in trading, risk management, and the impact of trading regulations, including verification processes for trading experience in Canada. Portfolio margining, profit and loss analysis, and the verification process for trading privileges are detailed. Options trading strategies, market adjustments, and risk management techniques are explored, along with the challenges of rolling a butterfly and the importance of risk limits. Trade management using software tools like O&E and Think or Swim is emphasized, and the differences between trading strategies such as bull trades and Super Bowl trades are discussed, along with the importance of trade reviews and back testing for complex strategies.

01 0:00Introduction and Forum Interaction

The presentation begins with an introduction, risk disclaimer, and educational purpose, followed by a discussion on forum interaction and topic selection.

Educational PurposeRisk DisclaimerTrading Options RisksForum InteractionExecution QuestionsTopic Selection
02 1:00Trading Strategies, Risk Management, and Decision Making

The presentation covers backtesting, delta adjustment rules, real-time trading adjustments, simulated training, capital management, risk assessment, and decision-making in trading strategies.

BacktestingDelta Adjustment RulesPosition ManagementLegal InterpretationTrading GuidelinesIntent vs. Action
03 14:49Closing Discussion and Commission Negotiation

The speaker concludes the discussion by summarizing key points and transitions into discussing commission negotiation with brokers. Topics include negotiating commissions, avoiding ticket charges, and the importance of account size and negotiation strategies.

Closing discussionSummary of key pointsNegotiating commissionsBroker selectionTicket chargesBroker trade-offs
04 21:21Margin Regulations and Trading Strategies

The speaker discusses factors beyond commission rates, including margin regulations, account types, and risk assessment. They also cover margin differences, excessive margin issues, and strategies for managing margin requirements across different countries and brokers.

Commission Rate FactorsBroker NegotiationAccount TypesMargin RegulationsRetirement AccountsMargin Differences
05 29:38Synthetic Positions, Margin Issues, and Ticket Charges

The trader discusses synthetic positions, margin issues, and ticket charges related to trading. They explain the synthetic position as similar to a broken wing butterfly, address margin issues, and mention the additional ticket charges due to extra orders.

Synthetic PositionMargin IssuesBroken Wing ButterflyTicket ChargesCost of Trading
06 31:54Adjustments, Risk Management, and Trading Regulations

The trader discusses adjustments in trading, risk management strategies, and the impact of trading regulations. They cover rolling back positions, backtesting, risk reduction, cash management, and the requirements for trading privileges in Canada.

AdjustmentsRolling BackTrading StrategyBacktestingRisk ManagementCash Management
07 43:42Verification, Portfolio Margining, and Profit and Loss

The chapter covers the verification process for trading experience in Canada, the concept of portfolio margining, and the discussion of profit and loss in trading accounts. It includes details about the required $150,000 for portfolio margining, a small account with $32,000, and a profit and loss of $770.

Verification ProcessPortfolio MarginingProfit and LossBroker Reports
08 46:03Options Trading, Market Adjustments, and Risk Management

This chapter discusses options trading strategies, including call and put strategies, market adjustments during events, and risk management techniques. It covers the impact of market events on profit and loss, the challenges of rolling a butterfly, and the importance of risk limits and position holding.

Options tradingProfit and lossCall optionsPut strategyMarket eventsRolling a butterfly
09 57:52Trade Management and Software Tools

The trader discusses using O&E and Think or Swim for trade management, emphasizing that profit and loss numbers should match across platforms. They highlight that simple strategies rely on price and time points, while complex strategies may require specific software due to differences in analytical processing.

Trade ManagementSoftware ToolsProfit and LossPlatform FlexibilityComplex StrategiesSoftware Impact
10 1:00:34Trading Strategies and Trade Reviews

The speaker explains the differences between trading strategies like bull trades and Super Bowl trades, and how these affect outcomes. They stress the importance of trade reviews, especially for complex strategies, and recommend using O&E or similar software for back testing and analysis.

Trading strategiesBull tradeSuper Bowl tradeOutcomes in different situationsTrade outcomesStrategic performance