Looking for a mentor in option trading

Daily he is shouting vix will fall, vix will fall, but it is increasing day by day and the moment it will start declining, this person will come out and shout " see i told you, vix is falling, and since it is natural, poor investors and traders will think, oh.... great!!!

Now he is calling all the traders speculators and gamblers because they have not done his course and as per Dilip they all will loose and Dilip and his clients will win. Only God knows when they will win. Earlier he said traders who buy both call put they lose money, traders who do expiry trading they lose money, traders who buy naked call put they lose money, trades who try to make money through short cut they lose money, so the summary is every one loses money except those traders who have done dilip's course.

And for that he is trying to make his client base by asking people to like his Facebook page and review but it seems that after reviewing by 24 people, this no. is not increasing at all. So it looks like people ate not responding him.
 

Blackhole

Well-Known Member
Iron condor works well only when u receive high premiums for legs sold + pay less for legs bought and index remain in the range thru out with less volatility. High vola kills such strategy.

Its for range bound or consolidations not for trending markets

Its for advance traders who know how to effectively establish all the legs..n when to do adjustments...like some people place bull spread and bear spread according to market conditions ,they do not establish all the legs at go......all based on market situations...so u can say when bull spread needs adjustment bear spread is established, so we got Iron condor on whole(call or put for bear or bull is selected based on market situations).

Some might go for all the legs @ the same time....some might take a day or 2 to establish all the legs.
 
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Yes, You are right Blackhole about risk of increased volatility but there is always risk in the market. Nothing is riskfree in the market. It looks atleast comparatively safe.
So can this be followed to earn consistently (say 3-4 Yrs) with low risk if one knows how/when to adjust if something goes wrong.
 
Earning consistently with low risk with iron condor is a myth. Cant be done in reality. Tried hard to crack it but its worthless. What is use of his 3% returns per month when I was seeing around 15-20% drawdown in a single day by this strategy? Not always but when market moves, It can make you loose your gains from multiple years in few hours. Waste of efforts on focusing on this. Just a precautionary note from my experience. People who want to experiment with this can definitely go ahead with this low risk perception.
Denjo, did you take stop loss when adverse move happen or you tried to adjust the position. I think we already know our max risk at the time of setting up the condor.We can never have more risk than this max risk.So if success probability of around 80% is achieved, even then one should be in net profit. or by your experience, you think there are
better option strategies available than this.
These strategies atleast looks better on paper than intraday/positional trading based on technical analysis where risk looks higher and success ratio are very low like 40% ratio called very good.
 
calculating max risk at the time of setting? lol. Yes if option pricing follows everything ideally. No in reality.

Iron condor is almost volatility neutral or you can say very slightly volatality negative. So

1. Ideally one should have 2 legs in profit and 2 legs in loss out of 4 in condor most of the time. Right?

2. Ideally if one CE is making loss then other CE should make profit. And same for PE. Right?

I have seen all 4 legs going in red and drawdown more than 18% at that time. Also I have seen all 4 going in green as well.

Its much more unpredictable. Also perfect timed entry is extremely crucial as you need to enter 4 legs. few seconds also causes big change in P&L.

I think you have not tried it much so I will suggest you to take few iron condor trades first and then we can discuss in details later. That will be more fruitful discussion.

Hope it helps.
Yes Denjo, you are right i have never traded iron condor in live market. My assumption are only based on the knowledge gain from different resources available.
As you have already shared your valuable experience about this, it forces me to rethink about this strategy which i was considering relatively safe.
Problem with me is that i have very less funds to play and i dont want to trade anything much risky so just trying to make sure the best way to minimize the risk.
 

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