Thread by @SarangSood

Option traders find a strategy & backtest it for 10+ years to see how it performed through various combinations of entry, exits, SLs.

One has to understand that market regimes keep changing after 3-4 years.

What worked in 2017 doesn't work with same effectiveness in 2021.

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Looking back i was a completely different trader in 2008 to 2015 to now. Ofcourse one keeps improving his skills but it also happens because markets keep evolving.

Whatever strategy works for a particular time period loses it's edge as more people start pouring into it.

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Therefore one needs to keep reinventing himself each time a regime changes. You could do very well in one period but fail miserably in another, thus not being able to sustain in the longrun.

This is primarily because one lacks understanding of basic structures of a strategy.

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You can find that one fit to all strategy through rigorous backtesting, but soon you'll start pointing out your lack of discipline or other issues which is not allowing you to stay profitable.

The problem lies in your lack of adaptability because of lack of knowledge.

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For option traders market volatility keeps changing. The intensity of delta moves, IV spikes, SL hunting candles are all governed by how the masses have deployed their strategies.

One needs to improve his awareness & stay mindful of repetitive unusual happenings.

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One can't immediately change his trading because he has seen some success in the past perhaps (usually it's just backtest results), but if your trading is only getting tougher day by day with random results, most likely it's going to stay like that.

The regime has changed.

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