Thread by @VohiCapital

A well meaning follower at @GreeksPoint asked me this and I'm sure others will have the same question.

How much return on margin can I make using your #GammaScalping Webinar?

Great question and thanks for it. Here are some thoughts.

1/n

One of the primary goals when @alok_dharia and I started running Webinars at @Greekspoint was to educate and share our experiences with others.

But in addition we wanted to ensure that we present a quantifiable representation of our learnings.

2/n

In all our Webinars we have attempted to put quantifiable metrics out regarding the ideas discussed.

A number of them show positive profitable expectancy but we have tried to also include testing results that show a strategy doesn't work.

3/n

Although each of the strategies we have discussed can be rolled into a trading syatem.

We have deliberately tried to stay away from presenting a full trading system.

Why you might ask?

4/n

All backtests have well defined rules and assumptions that are mentioned in the presentation for each.

However, a trading syatem needs several other inputs that are specific to each trader.

5/n

A few factors that go into a full trading system.

- Total Trading Risk Capital
- Personal tolerance for drawdowns
- Risk per trade
- Allocation to sub-strategies within the overall trading plan

6/n

All of these and other questions will have very specific answers for each individual.

More importantly, this is an aspect of discovery that a trader needs to go through.

Discovery?

7/n

Yes, Discovery!

Expectations of what might be tolerable in terms of drawdowns will definitely get challenged when your trading account actually goes through it.

I have seen Traders claim they are fine with 30% drawdown but get completely uncomfortable when even 10% is hit.
8/n

So even though the strategies we discuss have statistical results mentioned, the performance in a trading setup will be determined by your own #TradingPlan.

9/n