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Option Technical Trader with Backtesting


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Option Technical Trader with Backtesting

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  #1 (permalink)
CurveFitting
New York, NY
 
 
Posts: 7 since Jun 2012
Thanks: 1 given, 0 received

Hi,

I am from the Boston area. I have been trading stocks for about a year with a cash account. I am going to trade options with a margin account soon. I hope this journal will benefit myself and others. I am thinking of doing this...

In the evening:
  1. Run scans at the end of the day
  2. Select entry methods such as calls, puts, spreads, condors, calendar, spread, etc
  3. Define primary and secondary exits
  4. Back test and select the highest probability trade

In the morning:
  1. Read the news, the tape, macro, etc to see if I should still go through with the evening's plans
  2. Execute or do nothing
  3. Update Journal

So what do you think of the routine? Should I join chat rooms during trading hours?

What's a good program or website for backtesting? It seems people here use NinjaTrader but sinisa says it's crap.
I want to begin with a few basic indicator such as MACD, stochastic, and ADX before going into more advance indicators. I can probably program Excel to get daily OHLC historical data from yahoo and run the test but I imagine that would take months to build. What program do you guys use? I plan to paper trade on ThinkOrSwim for a couple of weeks before diving in with real money.

Also, what's a good(or free) program where I can record my screen and microphone to upload onto youTube? Screenshot of charts can be hard to understand so I want to do screencasts instead.

As for money management, I used 1/10 for stocks but I will probably use something like 1/40 for options. This is for cases where I may need to create a second or third legs. Let me know what you think.

Thank you everyone in advance.

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  #3 (permalink)
CurveFitting
New York, NY
 
 
Posts: 7 since Jun 2012
Thanks: 1 given, 0 received


For screeners, I use stockcharts.com and finviz.com the thread for screeners is here:
bigmiketrading.com/stocks-etfs-trading/10876-stock-screeners-scanners.html


For back testing, I will use NinjaTrader instead of MultiCharts because I know C#
it seems that the ranking is MultiCharts > NinjaTrader > TradeStation > Excel
bigmiketrading.com/multicharts/9222-backtesting-identical-strategy-tradestation-multicharts-different-results.html


As for screen recording software, I will use Jing and CamStudio
bigmiketrading.com/tech-support/15398-good-simple-light-screen-capture-program-videos.html


Chat rooms seem useless. But then how would you prevent yourself from trading out of boredom or falling asleep? Have anyone tried stocktwits?

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  #4 (permalink)
CurveFitting
New York, NY
 
 
Posts: 7 since Jun 2012
Thanks: 1 given, 0 received

Can someone with premium membership to Big Mike's Trading Forum please PM me a review of the forum? I mostly want to know if premium membership actually helped you make money or have you been on the forum for months without improvements in your PnL?

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  #5 (permalink)
 grausch 
Luxembourg, Luxembourg
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,149 received


CurveFitting View Post
Can someone with premium membership to Big Mike's Trading Forum please PM me a review of the forum? I mostly want to know if premium membership actually helped you make money or have you been on the forum for months without improvements in your PnL?

I considered $50 for the Elite membership rather cheap and it supports the rest of the free forum. To me this entire forum is worth more than a once-off $50.

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  #6 (permalink)
CurveFitting
New York, NY
 
 
Posts: 7 since Jun 2012
Thanks: 1 given, 0 received

Hi,
I don't mind giving to charity. Just wondering, did premium membership help you make money?

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  #7 (permalink)
 liquidcci 
Austin, TX
 
Experience: Master
Platform: ninjatrader, r-trader
Trading: NQ, CL
 
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Posts: 865 since Jun 2011
Thanks: 610 given, 1,070 received


CurveFitting View Post
Can someone with premium membership to Big Mike's Trading Forum please PM me a review of the forum? I mostly want to know if premium membership actually helped you make money or have you been on the forum for months without improvements in your PnL?

Whether it helps you make money or not is not important imo. It's only $50 and worth it just to support the forum. That being said the amount of information that can be gleaned is very helpful to traders of all levels. I can't say being here directly helped me make money. But I can say the info I have received here has been worth well more than $50.

"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
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  #8 (permalink)
 grausch 
Luxembourg, Luxembourg
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,149 received


CurveFitting View Post
Hi,
I don't mind giving to charity. Just wondering, did premium membership help you make money?

Something else to consider... if it has helped me make money, what makes you assume that it would help you make money? There are some good ideas and threads there, but whether or not you make money will be in how you implement the ideas.

I didn't pay the $50 to make money, I paid it to learn something new and I most definitely did.

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