Premium Seller ver 2
- hypothetical · Annual Return (Compounded)
- 40.7%
- Max Drawdown
- —
- Trades
- 33
- Win Trades
- 51.5%
- Profit Factor
- 2.50
- Win Months
- 47.6%
About this strategy
This system is designed to sell options for premium. It will also go long low priced stocks which act similar to options but with no time decay.
Sometimes the system may sell a put which will get it long a stock. Once long a stock, the system may sell covered calls on this stock.
The system is designed to be traded manually, and it is also designed to hold winners and sell losers.
I trade stocks in this system with real money and have over 5 years of experience trading.
As noted all good systems will have flat periods and drawdowns before going higher. The system does not over trade and will hold positions longer than many other systems.
However, the benefit to holding positions for a longer time period, is that there are lower commissions which should make this system more profitable than a stock system that may hold for a few pennies and sell. Systems that only trade for pennies can look good but end up not making the trader any real money. Please compare our statistics to other systems on C2 which trade daily, and see if you would have made more money over time by trading our system.
Selling options alone allows the profit from the system to more than cover the small fees for trading it. But the real Alpha is that by finding lower cost stocks at great prices, we are able to achieve better returns than a system that only sells options.
Note, there will be a limited number of traders that we allow to trade this system and pricing may go up in the future as the system becomes more popular. One of the goals of trading on C2 is to have an independent 3rd party review of the system and therefore attract hedge fund or high net worth accounts that would like proven management. So do not expect this system to stay on C2 forever. Please feel free to contact me with any questions.
Sometimes the system may sell a put which will get it long a stock. Once long a stock, the system may sell covered calls on this stock.
The system is designed to be traded manually, and it is also designed to hold winners and sell losers.
I trade stocks in this system with real money and have over 5 years of experience trading.
As noted all good systems will have flat periods and drawdowns before going higher. The system does not over trade and will hold positions longer than many other systems.
However, the benefit to holding positions for a longer time period, is that there are lower commissions which should make this system more profitable than a stock system that may hold for a few pennies and sell. Systems that only trade for pennies can look good but end up not making the trader any real money. Please compare our statistics to other systems on C2 which trade daily, and see if you would have made more money over time by trading our system.
Selling options alone allows the profit from the system to more than cover the small fees for trading it. But the real Alpha is that by finding lower cost stocks at great prices, we are able to achieve better returns than a system that only sells options.
Note, there will be a limited number of traders that we allow to trade this system and pricing may go up in the future as the system becomes more popular. One of the goals of trading on C2 is to have an independent 3rd party review of the system and therefore attract hedge fund or high net worth accounts that would like proven management. So do not expect this system to stay on C2 forever. Please feel free to contact me with any questions.
Hypothetical Monthly Returns (includes fees/commissions)
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | -5.6 | 12.4 | 0.1 | 6.2 | |||||||||
| 2011 | 28.9 | 25.3 | 17.8 | -6.0 | 2.9 | -19.0 | -11.5 | -19.8 | -24.4 | 32.4 | -37.6 | -17.4 | -45.5 |
| 2012 | 65.6 | 12.9 | -11.0 | -7.7 | -3.7 | 26.1 | -1.0 | -0.7 | 3.2 | -4.4 | -4.7 | -0.2 | 72.0 |
| 2013 | -23.1 | 10.5 | 23.8 | 9.1 | 83.4 | 12.0 | 11.5 | -0.7 | 13.7 | -10.0 | 12.3 | -3.3 | 190.2 |
| 2014 | 34.0 | 17.9 | -9.9 | -26.9 | -4.5 | 112.9 | -8.9 | 7.7 | -5.7 | 1.7 | 4.7 | 80.2 | 275.7 |
| 2015 | -2.9 | 18.9 | -5.2 | -11.3 | 5.6 | -8.4 | -2.3 | -14.2 | -15.0 | 12.3 | 5.0 | -2.3 | -22.8 |
| 2016 | -28.1 | 7.5 | -8.7 | 8.4 | -6.4 | 3.1 | 5.0 | -2.9 | 5.9 | -5.0 | -7.3 | -0.1 | -29.9 |
| 2017 | 10.7 | -0.0 | -5.5 | 6.0 | -5.0 | 7.4 | 6.9 | -2.5 | 8.9 | 0.8 | 5.4 | 0.5 | 37.2 |
| 2018 | 9.1 | -3.6 | -3.2 | 3.5 | 27.8 | 1.0 | 1.5 | 14.6 | -6.2 | -16.9 | 7.0 | -17.3 | 9.0 |
| 2019 | -3.5 | 7.8 | 1.0 | -0.1 | -0.3 | 0.0 | -9.7 | 7.9 | -2.9 | -3.5 | -2.2 | -9.1 | |
| 2020 | 11.0 | 9.0 | -6.4 | 11.9 | 11.3 | -4.5 | 9.6 | -4.3 | -4.2 | 8.5 | -0.7 | -1.8 | 43.1 |
| 2021 | 27.0 | 3.7 | -16.3 | 4.5 | -7.7 | 3.4 | 2.5 | 7.3 | -4.5 | -1.8 | -1.8 | -6.0 | 4.7 |
| 2022 | -11.6 | 1.9 | 3.4 | -14.2 | -0.8 | 7.4 | 0.6 | 6.9 | -13.0 | 3.6 | 4.0 | -4.8 | -18.3 |
| 2023 | 10.3 | -4.7 | -6.4 | -12.1 | 8.5 | 2.9 | -3.1 | -10.2 | -4.9 | -30.4 | -10.1 | 16.3 | -41.9 |
| 2024 | -2.5 | -3.5 | 5.6 | -7.0 | 16.3 | -3.2 | -6.5 | -3.0 | 6.8 | -3.9 | -19.9 | 5.6 | -18.0 |
| 2025 | -0.2 | -17.7 | -0.6 | -2.9 | 0.7 | 1.7 | 0.3 | 2.7 | -1.7 | -0.1 | -3.1 | -1.7 | -21.6 |
| 2026 | 1.4 | 0.3 | -0.0 | 0.2 | 1.0 | 0.9 | 1.3 | -3.0 | 2.3 | 4.5 |
Statistics
Overview
| Strategy began | 10/18/2010 |
|---|---|
| Suggested Minimum Capital | $10,000 |
| Age | 193 months |
| What it trades | Stocks, Options |
| # Trades | 33 |
| # Profitable | 17 |
| % Profitable | 51.5% |
| Avg trade duration | 1062.9 days |
| Max peak-to-valley drawdown | — |
| drawdown period | — |
| Annual return (compounded) | 9.1% |
| Avg win | $1,482 |
| Avg loss | $1,300 |
Ratios
| W:L ratio | 2.46 |
|---|---|
| Sharpe Ratio | 0.31 |
| Sortino Ratio | 0.57 |
| Calmar Ratio | 0.48 |
CORRELATION STATISTICS
| Correlation to SP500 | 0.22 |
|---|---|
| Return Percent SP500 (cumu) during strategy life | 537.4% |
| Return of Strat Pcnt - Return of SP500 Pcnt (cumu) | 173.9% |
Return Statistics
| Ann Return (w trading costs) | 40.7% |
|---|---|
| Return Pcnt Since TOS Status | 0.0% |
| Ann Return (Compnd, No Fees) | 9.1% |
Slump
| Current Slump as Pcnt Equity | 300.9% |
|---|---|
| Current Slump, time of slump as pcnt of strategy life | 0.3% |
Instruments
| Percent Trades Forex | 0.0% |
|---|---|
| Percent Trades Futures | 0.0% |
| Percent Trades Options | 0.5% |
| Percent Trades Stocks | 0.5% |
Risk of Ruin (Monte-Carlo)
| Chance of 10% account loss | 100.0% |
|---|---|
| Chance of 20% account loss | 100.0% |
| Chance of 30% account loss | 100.0% |
| Chance of 40% account loss | 100.0% |
| Chance of 50% account loss | 100.0% |
| Chance of 60% account loss (Monte Carlo) | 100.0% |
| Chance of 70% account loss (Monte Carlo) | 20.0% |
| Chance of 80% account loss (Monte Carlo) | 13.3% |
| Chance of 90% account loss (Monte Carlo) | 0.0% |
| Chance of 100% account loss (Monte Carlo) | 0.0% |
Automation
| Percentage Signals Automated | 0.0% |
|---|
Trading Style
| Any stock shorts? 0/1 | 1 |
|---|
Trades-Own-System Certification
| Trades Own System? | 0 |
|---|---|
| TOS percent | 0.0% |
Win / Loss
| Avg Loss | $1,300 |
|---|---|
| Avg Win | $1,482 |
| # Winners | 17 |
| Sum Trade PL (losers) | $20,795 |
| Sum Trade PL (winners) | $25,196 |
| Num Months Winners | 91 |
| # Losers | 16 |
| % Winners | 51.5% |
Dividends
| Dividends Received in Model Acct | 25936 |
|---|
Age
| Num Months filled monthly returns table | 192 |
|---|
Frequency
| Avg Position Time (mins) | 1530647.38 |
|---|---|
| Avg Position Time (hrs) | 25510.79 |
| Avg Trade Length | 1062.90 |
| Last Trade Ago | 5380 |
Regression
| Alpha | 0.04 |
|---|---|
| Beta | 0.77 |
| Treynor Index | 0.08 |
Maximum Adverse Excursion (MAE)
| MAE:Equity, average, all trades | 0.08 |
|---|---|
| MAE:Equity, 95th Percentile Value for this strat | 0.13 |
| MAE:Equity, average, losing trades | 0.09 |
| MAE:Equity, losing trades only, 95th Percentile Value for this strat | — |
| MAE:Equity, average, winning trades | 0.07 |
| MAE:Equity, win trades only, 95th Percentile Value for this strat | — |
| Avg(MAE) / Avg(PL) - All trades | 17.82 |
| MAE:PL (avg, all trades) | 0.67 |
| MAE:PL (avg, losing trades) | — |
| MAE:PL - Losing Trades - this strat Percentile of All Strats | 26.27 |
| MAE:PL - Winning Trades - this strat Percentile of All Strats | 73.13 |
| MAE:PL (avg, winning trades) | — |
| MAE:PL - worst single value for strategy | — |
| Avg(MAE) / Avg(PL) - Winning trades | 0.71 |
| Avg(MAE) / Avg(PL) - Losing trades | -1.30 |
| Hold-and-Hope Ratio | 0.09 |
RATIO STATISTICS
| a (intercept, estimate of alpha) | 0.34 |
|---|---|
| VAR (95 Confidence Intrvl) | 0.09 |
DRAW DOWN STATISTICS
| Max Equity Drawdown (num days) | 221 |
|---|---|
| Last 4 Months - Pcnt Negative | 0.2% |
Trading record
| Symbol | Side | Qty | Opened | Closed | P/L |
|---|---|---|---|---|---|
| RMBS | long | 300 | Jun 13, 2011 | Dec 13, 2011 | ($1,865) |
| YOKU1118F60 | short | 10 | Apr 4, 2011 | Jun 19, 2011 | $390 |
| NEOP | long | 1000 | Feb 9, 2011 | Jun 13, 2011 | $88 |
| RMBS1121Q17 | short | 10 | Mar 25, 2011 | May 13, 2011 | $276 |
| SPY1121Q132 | long | 5 | Apr 15, 2011 | Apr 18, 2011 | $548 |
| NEP1116P5 | short | 10 | Feb 8, 2011 | Apr 15, 2011 | ($514) |
| YOKU1118F70 | long | 10 | Apr 4, 2011 | Apr 15, 2011 | $2,136 |
| SVNT | long | 500 | Oct 26, 2010 | Apr 4, 2011 | $224 |
| CXM | long | 3000 | Feb 8, 2011 | Apr 4, 2011 | ($132) |
| SVNT1118F12 | short | 5 | Feb 25, 2011 | Apr 4, 2011 | $23 |
| SNT | long | 2000 | Feb 8, 2011 | Apr 4, 2011 | ($5) |
| SPY1116P133 | long | 5 | Apr 1, 2011 | Apr 1, 2011 | $143 |
| USO1116P36 | short | 5 | Feb 28, 2011 | Apr 1, 2011 | $288 |
| USO1116P39 | long | 5 | Feb 28, 2011 | Apr 1, 2011 | ($837) |
| CLDX1121E3 | long | 10 | Feb 22, 2011 | Apr 1, 2011 | $36 |
| QID1116D56 | short | 5 | Mar 2, 2011 | Apr 1, 2011 | $713 |
| QID1116D52 | long | 10 | Mar 2, 2011 | Apr 1, 2011 | ($1,054) |
| CCME1118R14 | short | 5 | Feb 22, 2011 | Mar 28, 2011 | ($1,257) |
| AZN1116P45 | short | 3 | Feb 8, 2011 | Mar 25, 2011 | ($34) |
| SVNT1119O9 | short | 10 | Feb 8, 2011 | Mar 20, 2011 | $483 |
| SPY1119N134 | long | 5 | Feb 16, 2011 | Feb 18, 2011 | ($237) |
| NEOP | long | 5000 | Oct 18, 2010 | Feb 8, 2011 | $8,265 |
| AZN | long | 400 | Jan 23, 2011 | Feb 8, 2011 | ($625) |
| AZN1116D50 | short | 3 | Feb 7, 2011 | Feb 8, 2011 | ($139) |
| SNT | long | 5000 | Oct 18, 2010 | Feb 8, 2011 | $46 |
| MNKD1122A6 | long | 2 | Dec 21, 2010 | Jan 23, 2011 | ($591) |
| AZN1122M50 | short | 4 | Oct 18, 2010 | Jan 23, 2011 | $517 |
Past results are not necessarily indicative of future results.
These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.