August 27th, 2015
Posted by pftq

Tech Trader and Its 700% Trade on SPY

A monstrous week for Tech Trader for those following it on The Tech Trader Wall - first calling the exact bottom of SPY at $187 (on a daily close basis) and then holding call options through until $199, while actually fighting my attempts to sell the calls it bought by rebuying after I try to sell (and it turned out to be right to hold).  Again, all this on Tech Trader's part is fully automated, including the options trading, strike selection, everything.  The only part not automated was me trying to manage risk and actually costing Tech Trader an extra 200% in gains, to which it rightfully tried to get back by rebuying into calls that then went up 50% in the same day.  Looks like I no longer have a role here.

An excerpt from today's summary on The Tech Trader Wall:

And that's the end of Tech Trader's once-in-a-blue-moon 100% hitrate SPY signal.
6.5% on the equity from $187 to $199
200% on the initial weekly 191 calls from $1.5 to $4.5
700% on the roll to weekly 197 calls from $.3 to $2.12 (my bad for selling early, would have been $3 if I let Tech Trader do this, sorry Tech Trader)
57% on the 197.5 calls Tech Trader rebought this morning in disagreement to my selling from $1.47 to $2.32
160% on the month-out 191 calls that Tech Trader bought and held the whole time as a baseline return from $3.93 to 10.23.

I think I might have to step down here after costing Tech Trader 200% on potential gains lol.  There was actually a funny moment today where I literally couldn't sell because something in Tech Trader was blocking my order.  Now we know why.  I'm officially unneeded.
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Theo says...

We have met the enemy. And he is us?

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