Adam Todd's Scratch Trade excel analysis

[Bradders]

Adam Todd made a post on scratch trades. I tried to illustrate this in a spreadsheet on excel, showing how the options change depending on the movement of the markets. I also included the use of a stop loss to try and improve the situation.

Does anyone think this is a profitable method? anyone else have a favourite routine or technique that they'd like to share with the forum??

[rpadrela]

Hi,

Thanks for sharing.

I wonder whether this strategy is profitable, it has to work more than 50% of the times to be profitable.

I remember Adam saying that trading based solely on the WOM isn't as profitable as it once was but I don't have the experience behind me so I can't really tell you anything.

I'm also interested in what others have to say about this.

Cheers

[Mug]

Are you saying cut out the trade if it goes two ticks against you? I don't really understand the question? If you went for a +1 tick -2 tick strategy it would be really tough to make any money unless you have an amazing strike rate.