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No because in my research if a large drop in prices happens, I need all of that excess. If I use that extra excess on other positions it won't be there when a large crash happens.
Can you help answer these questions from other members on NexusFi?
Yes you can switch the stop but then you need to redo the positions after that because exit dates could be changed. So it is not as simple as changing the stop number.
I assume that in your system a crash just after you sold the puts is more harmful than a crash just before you intend to buy them back.
I further assume that we are unable to predict the time of a crash.
Thus, the risk of a loss is unevenly distributed over time. There are times with larger risk (just after selling) and times with less risk.
Holding (more or less) constantly x times the initial margin as a "safety belt" would result in constant risk over time. And to achieve the same profit, x could be larger than 6. Maximum risk just after selling would be reduced.
Actually it is the opposite if you are doing spreads. A crash long after you did the spread is more harmful because the delta on the longs is lower and thus the margin is higher than right after you entered the spread.
This table uses 4X.
The futures price and drawdown on 20150825 & 120150928 is about the same. But Acct Bal for IM is 51.5% on 20150825 and 103.8% on 20150928.
Does the 30 day limit on the spreads affect the number of profitable trades you have? I seem to remember a previous post saying up to 45 days but has your testing proved otherwise?
I checked out the reports on your tableau site to confirm the seasonal trend for Sept. The trend looks to be flat to slightly up, is that what you see. I want to make sure I'm looking at it correctly.
