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Comparison between alerts services

Discussion in 'Options' started by Smetana, Aug 6, 2016.

  1. Smetana

    Smetana Guest

    Capital Discussions offers various alert services for RTT, Kevlar or Rhino (the most recent)... Cost is the same : 1000 $/year. I intend to choose one, but I don't know which.
    Has someone made a comparison between these services : advantages / drawbacks, low / high maintenance... ?
    Thank you.
  2. tom

    tom Administrator Staff Member

    Hi Smetana,
    Amy doesn't offer $1000/year subscription but the other services do. I'll try to write up a summary of all of them for you.
  3. Harry

    Harry Well-Known Member

    Ok I am not going to provide an answer here but my hint may be construed as an answer but believe me that's not the intent as I am a newer than a newbie.

    When analyzing the various trades of course you look at the expectancy, win rate etc.

    We also have a max loss defined although it could be in two forms - max stop loss and max theoretical loss.

    Personally, I have started to think of max potential loss rather than max stop loss. My assumption is that I am going to scale my trades real high as otherwise playing for pennies does not make sense. And if I scale them high and a catastrophic event happens, all the "defined stop losses" are going to fall by the wayside and I will most likely hit the "max potential loss". With me trading a high account size, most likely such an event, even if once a decade, is going to wipe my account out.

    Now whether I scale that high or not, whether such an event happens or not, it is possible I or you may go halfway to such a risk level and market may also take us halfway to such event. But while evaluating strategies, if we look at risk of overnight or weekend ruin, I think we will be able to reconcile ourselves to the right strategy even if low returns.

    With that background, I have started disliking condors or credit spreads where you risk 10 to make a buck but I would prefer debit spread plus butterfly / BEB where you can limit your risk better the market crashed 20% overnight.

    But this is naive thinking with less than 3 months of options strategy experience. I might (hopefully not) get braver over time.

    Implied answer - what's the max market crash (or gap up) loss for each time of these strategies per 100k account?

    [adding: I do realize that you will not just buy a single condor for 100k in a 100k account. Even in a simple iron condor you would win one side. But my question asks max loss by account size not by position size so that's how we should eval the question]
    Last edited: Aug 8, 2016

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