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Performance Metrics

Trading Philosophy

The best way to beat the market is by strategically trading options. Options allow us to achieve a high probability of success on our trades which, in turn, gives us a very high amount of consistency. With options, we’re able to take predicting future market direction out of the equation as much as possible. Much like a casino, we use the numbers and math to our advantage rather than trying to predict the next card.

To reduce and manage portfolio risk, we take a top-down approach by looking at our entire portfolio as a whole and weighting it to a single index. This allows us to actively adjust our portfolio to keep our risk in check.

Overall Total Win Rate Since 2016

A high win rate is crucial to achieving consistent results. Our high win rate can be attributed to the option strategies we use, as well as our method of managing those trades.

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Overall Total Win Rate

Total Trade Metrics since starting tracking in January of 2016.

Total Trades

This is the total number of closed trades.

Total Wins

This is the total number of winning trades.

Total Losses

This is the total number of losing trades.

Total Trades by Strategy Type

  • Iron Condors 48%
  • Strangles 29%
  • Verticals 12%
  • Single Option 8%
  • Back Ratio 2%
  • Butterfly 1%

Profit and Loss Metrics

Average Profit Per Contract

On average, each winning trade we close has a profit of $79 per contract.

Average Loss Per Contract

On average, each losing trade we close shows a loss of $234 per contract.

Average Days held

On average, we hold each trade for 27 days.

%

Average ROC

On average, each trade returns us a 15% on our investment.

With high probability option strategies, it is common for the average loss to be larger than the average profit. This is not a problem as long as you have a high enough win rate that ensures the losses are few and far between. Constantly booking small winners and rarely ever losing is where the real home run is hit.