Iron Condor And Related Options Trading ServicesI’ve read all the posts concerning what appears to be the top two options-for-income services (10% per month & Spread The Trend). An overriding theme disputing the services’ % of gain claims made seems to hinge directly on the brokerage firm and how efficiently they execute (experience suggests this is very valid). Anyone else have any input specifically related to brokers (like eOptions) and their efficiencies that autotrade these services?…Thanks In Advance.
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Yes, 10PPM did have a big loss in May 2010. We own it and publish it on our site. It is not hidden. We also got rid of that trading team, hired a new one, and implemented new exit strategies to prevent a repeat of that performance. (move your mouse pointer over the May 2010 figures (http://10ppm.com/customer/customerMain.php?section=customer&step=performance12Month) for a more detailed explanation) As you can see, the returns since then have proven to be successful. The service from 2010 is very different than what it is now. You could focus on one month in the past or 40+ months afterwards to help make your decision.
Pro-Trading-Profits also posted a 6.9% gain in April 2014 when we only gained 1.3%. We do not send them any real-time trade details. They simply pull figures from our site and make their own calculations. They include commissions but this should only reduce the gross return by 0.25% to 1.5%, depending on your broker. Pro-Trading-Profits also calculates with a portfolio balance and allocation amount of their choosing but one should make their own calculations based on their own individual needs. Find out how they make their calculations and you’ll be surprised at how much you’ll need to change to get a true net return for your own situation.
If a trade that risked $10k earned $1k, that would be a 10% return, no doubt about it. Those that calculate with unused cash in their account can change a 10% return into a 1% return if the portfolio had $100K, even though the amount risked is the same ($10k). With that method, a 10% loss becomes a 1% loss. A return on the trade alone is fixed and cannot be manipulated by other numbers.
Some people will argue that including the portfolio is the only true method of calculating returns but it is up to the individual to make calculations that fit their own needs. What is a proper trade allocation, 20% of portfolio, 40%, 60%? Again, this depends on the individual. Some want to take on more risk than others. Some have more capital than others. How much to trade with and how much of their account should be used is a decision for the individual or their Investment Adviser. Our service provides our own personal trades. Subscribers decide whether or not to follow them, how much of their portfolio to allocate, and how much to use for each trade. We do not know each subscriber’s financial situation so we cannot make allocation recommendations with regards to each trade or percentage of their portfolio. Newsletters that do that may be approaching a gray area or possibly crossing the line with investment advice.
With regards to broker efficiency for autotrading, this varies significantly. We cannot recommend one autotrade provider over another but will say that every single provider listed on our site will only collect commission fees if they fill the order. With that said, they are all trying their best to fill orders. Sometimes one broker fails to fill an order when the others succeed. On another trade, that same broker would fill the order but another fails. They’ve all failed at least once but are able to fill an overwhelming number of them also. There are currently 6 autotrade providers to choose from with our service so if you’re not happy with one, there are 5 others to choose from.
In light of this inquiry about commission calculations and autotrade performance, our developers will begin to create some informational pages on our site. These pages will include an interactive form to calculate net returns based on commission fees and individual allocation amounts. We will also keep track of autotrade broker performance with regards to filling orders.
If you have any other suggestions, or wish to ask us questions about our service, please contact us through our website: http://10ppm.com/customer/customerMain.php?section=customer&step=contact
We’d be happy to accommodate and dispel any myths out there for you.