Managing winners and rolling are both mechanics we (as tastytraders) employ frequently. What happens when we combine the two?
In this segment, we compared the long-term performance of four trading mechanics:
- the combination of rolling and managing winners (either managing at 50% or maximum profit or rolling--whichever was triggered first)
This study was conducted on a position (short 30puts) basis as well as analyzing how an overall portfolio would be affected. The Research Team looked at Average Daily returns, Average P/L, Daily Standard deviation as well as a few other metrics to measure which of the mechanics above was most effective.
Watch this segment of Market Measures with Tom Sosnoff and Tony Battista for the exciting takeaways.