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SuperBull Question

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2 replies, 2 voices Last updated by Enrico Saluzzi 2 months ago
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    • #17463

      Enrico Saluzzi
      Participant
      @enrico@saluzzi.eu
      Points: 64
      Rank: Newbie

      Thank you John, this confirms my thoughts.

      All the best.

    • #17458

      John Locke
      Keymaster
      @john-locke
      Going to The Trading Triangle LIVE 2016Locke In Your Success CoachAPM2Trade JournalsUltimate Income Trader Workshop

      When choosing a profit target exit, the thing you want to do is run an extensive test without a target. “IF” you find there is a number you generally get to in a trade and rarely exceed that number by any substantial amount, then that number tends to make a good profit target, but “only IF” the occasional  large win isn’t required to maintain the utility of the trade (as in X4v22). In the case of the Super Bull, from 2008 till today, I cannot recall a single time it has been closed at full profit, and I would agree that it rarely gets much over 70% profit, and I do not believe cutting the profits short at 70% would substantially affect the utility of the trade. This being the case, I believe a 70% profit target would be reasonable.

    • #17456

      Enrico Saluzzi
      Participant
      @enrico@saluzzi.eu
      Points: 64
      Rank: Newbie

      Hi John,

      I am watching the Option Trading for Income videos about the SuperBull trades and I have a question: I have backtested the strategy and I noticed that a profit target could be reasonable.

      Doing some tests I would try to put a 70% profit target: for instance at 700$ on a single trade. This can reduce the time in the market, and it can increase the profitability of the trades (I have seen some of them reaching the 70% and then retrace).

      What do you think about it? Can it make sense?

      Thank you for your feedback.

      Enrico

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