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- scattergood replied Nov 16, 2009
I chose my strikes NOT based on equidistant prices. You can see in the example post that has the description of legging into a trade that I use existing support and resistance lines, and custom internal strength measure of a currency to determine ...
Forex Options Strangle System
- scattergood replied Nov 16, 2009
Forex option margin is kind of complicated, so let me try a full description: Starting Balance in Account: $10,000 Sell 1 100K Call for .0025: +$250 Sell 1 100K Put for .0030 : +$300 ====================== Cash in the Account: : $10,550 Now we have ...
Forex Options Strangle System
- scattergood replied Nov 16, 2009
In fact here is a repeat of a post I did in another options thread here on ForexFactory: ======================================= OK, here is a chart with information about a USDJPY strangle I have legged into. I sold the put first, then after a few ...
Forex Options Strangle System
- scattergood replied Nov 16, 2009
I am happy to answer whatever questions people have, and to explain what I am doing. To give a little summary, I started live trading Strangles on Forex on the 1st of September of this year. So far I am up 34% on a mark to market basis. If all my ...
Forex Options Strangle System
- scattergood replied Nov 16, 2009
Margin is calculated as: Total Position x .02 x Net Delta So in the example you gave, the numbers aren't quite right. You cannot really have a put and a call with both positive delta. If the price of the EURUSD goes up, the call's premium goes up, ...
Forex Options Strangle System
- scattergood replied Nov 16, 2009
That's not quite how it works. If you sell the 1.4600 EURUSD Call when the EURUSD is trading at 1.4674, you should be able to get 74 pips + some amount of time premium. The total you can sell it for let's ASSUME is 100 pips. You get 100 pips in your ...
Forex Options Strangle System
- scattergood replied Nov 8, 2009
Whatever language you learn, learn to apply good software engineering techniques. Most of the problem comes in debugging and testing the code you write. Too many times you write something, think it works one way, forget about it, and have to come ...
Learning to Program MQL4/5
- scattergood replied Nov 4, 2009
No worries if you have any questions I am happy to try to help answer them.
Question on FX options & time-decay
- scattergood replied Nov 4, 2009
The answer is a yes and a no. Part of the issue is how you intend to exit the strangle. But let's back up a little first. Let's assume I sell a 30 day EURUSD strangle with the 1.5500 and 1.4500 strikes when then EURUSD is at 1.5000, and collect a ...
Question on FX options & time-decay
- scattergood replied Nov 4, 2009
OK, here is a chart with information about a USDJPY strangle I have legged into. I sold the put first, then after a few days sold a call. Here is a legend for the chart: 1) The left most vertical red line is the date I sold the first leg, the put in ...
Question on FX options & time-decay
- scattergood replied Nov 3, 2009
You can place a stop loss and a take profit when you send in your order. The OrderSend function has the following definition: int OrderSend(string symbol, int cmd, double volume, double price, int slippage, double stoploss, double takeprofit, string ...
need help coding a stop loss
- scattergood replied Oct 31, 2009
RiverTrader--yes options in general, and strangles in particular are very different and difficult to understand compared to other forms of trading. I will try to address your points: 1) Worst nightmare -- your fear about the price spiking well ...
Question on FX options & time-decay
- scattergood replied Oct 29, 2009
Spreads on options on index ETFs == $0.01 to $0.05 Spreads on options on forex ETFs == $0.01 to $0.05 Margin for ETFs == Lots x 100 x Strike x .2 - (Lots x 100 x (Strike - Underlying) Lets say you sell the 1 lot of the SPY (S&P 500 ETF) Call at 100, ...
Question on FX options & time-decay
- scattergood replied Oct 29, 2009
When you sell any option, or pairs of options like in a strangle, your main engine of profit is time decay, or theta. Your secondary engine is a lowering of volatility, which is reflected in vega. Price movement, or delta can be neutral or harmful ...
Question on FX options & time-decay
- scattergood replied Oct 29, 2009
RiverTrader, I have been trading Short Strangles on the equity indexes starting in February. I am happy to report that I am up about 18% so far, with only two months in the red, each one less than 2%. I moved this strategy over to Forex and have ...
Question on FX options & time-decay
- scattergood replied Oct 28, 2009
You are welcome. I have been trading for about 4 years and moved into options about 2 years ago. I took a lot of time studying options before I started trading them. I have been systematic in trading index options this year and been positive for the ...
Question on FX options & time-decay
- scattergood replied Oct 26, 2009
You have to be clear on what theta you are discussing, relative or absolute value. To be sure, with a high volatility, an options initial value will be higher than one one with a low volatility. Here is how I think of it for a $20 stock: A $1 option ...
Question on FX options & time-decay
- scattergood replied Oct 26, 2009
Let's look at the very simple math of an option. I will work with the following assumptions: 1) You have bought 100K 1.4500 EURUSD strike call with 100 days until expiration for 100 pips. The EURUSD is trading at 1.4500 at the time making your call ...
Question on FX options & time-decay
- scattergood replied Oct 26, 2009
Enivid--yes, 5 months is a long time, but having been involved in even longer beta's not much important is going to change. They can't really change the event driven model of their new code, and that's what causes the incompatibility. And they can't ...
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