Option Trading Blog

Hey guys, I am currently a little bit busy on developing a trading system and checking to see if it can be useful to my trading. It is pretty hard to do so because there is not much information out there because as you might suspect, people make money out of it so no one is going to hand me the information I need to develop the algorithm.

If algorithms interest you, I recently discovered a wonderful algorithm to optimize a solution at ingber.com. It is called the ASA algorithm and it is supposed to be pretty sophisticated. Though be aware, plenty of math is involved. My computer is currently running it on some code I made and I’m waiting for it to finish so I can see the results.

On a different note, some people have told me to put some of my trading systems I currently use. This is a bit of a tricky thing to do and let me explain why. Trading is dynamic. Different techniques apply at different moments. Naturally, I can only tell you which techniques I use in general situations. As a blog is a static structure, I can’t update my blog every 2 minutes giving guys recommendations. It would actually impair my trading.

That doesn’t mean I can’t put more general recommendations before trading and after trading which I intend to do as of next week. Hopefully I could also update you on my simulations for my current model and my experience with the ASA algorithm.