John Locke Roundtable

Discussion in 'Round Table Presentations' started by Luke, Aug 2, 2017.

  1. Mark17

    Mark17 Well-Known Member

    Why do you not think an ATM butterfly can make money?

  2. ACS

    ACS Well-Known Member

    Why bother with stock and short call? Just sell naked puts which is exactly what you're doing.
  3. CATTY

    CATTY Member

    It is because the Market is always moving up and down! How can you make money with ATM Butterfly? Unless you always get out positions with 10-50% profit each time. As the result, you get a little each time and will loss a big when Market jump or down sharply. I do not trading like this! Everyone has his own strategy to trade. Just do whatever you like. "Making Money is the KEY!"
  4. Mark17

    Mark17 Well-Known Member

    Of course the market always moves up and down. But if you have something like a 10% target profit and 15% max loss, why do you not think you can be profitable trading a butterfly over time?

    And who says you lose big when the market jumps sharply? Define "jumps sharply." How often does that occur?

  5. status1

    status1 Well-Known Member

    Really ? and what do you do when ?

    Seems to me like you have the same problem so why do you think the covered call is easiest ?
  6. CATTY

    CATTY Member

    Any person using M3 strategy to make money? Any person use Road Trip to make money?
  7. status1

    status1 Well-Known Member

    There are a lot of folks here using the RTT,M3 and other versions of the BWB to make money
    I have not traded the M3 The ITM call part of the trade doesn't appeal to me
  8. Jeffrey Suckow

    Jeffrey Suckow Active Member

    I am in the learning stage.
    I am backtesting the M3. For the moment the results have been good. In my backtest, I do not look at any chart or pay attention to the trend.
    My adjustment are strictly "made" by looking at the Greeks and the T+0 line and the price of RUT at 15:30 EST.
    I close at 10 DTE except if the position is very safe to go a few more days.
    Plan capital is $50k. Percentage is calculated on those $50k
    I am aware that these are backtests and that reality will be different, but I got to start somewhere.
    I'll let real traders add to the thread.

    Attached Files:

    • M3.JPG
      File size:
      61.9 KB
  9. status1

    status1 Well-Known Member

    Look like the back testing is showing good results
    Have you back tested it for other years like 2008 or 2017 ?
  10. Jeffrey Suckow

    Jeffrey Suckow Active Member

    I'll continue to go forward until today.

    I have done various months in 2015, 2017 and 2018. All ok. But I want to be methodic, I'll post more when I have finished 2015, etc.

    Regarding 2008, I asked John Locke the other day, he said it did very well during that period. I'll backtest at one point.

    All my backtest are done exactly at 56 DTE. Later on, I'll see if entry can be improved by monitoring butterfly prices like Kevin Lee has shown in one of his videos..

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