YZ income fund
Hypothetical Monthly Returns (includes typical commissions and system fees)
|Instruments||Mostly Options; (some stocks)|
|Strategies||Technical analysis, Volatility trading, Spreads, Market timing|
|System started||9/18/2011 (20 months ago)|
YZ Income Fund
(Last login to C2: 5/21/13 20:49)
C2 Score: 995
|Hypothetical Trading Results|
|4/30/13 10:11||SELL||20||VXX1303E21||VXX May13 21 call (exp 05/03/2013)||0.13||5/4
|4/17/13 14:08||SELL||40||VXX1326P18.5||VXX Apr13 18.50 put (exp 04/26/2013)||0.14||4/27
|4/17/13 13:00||BUY||40||VXX1318Q18||VXX May13 18 put (exp 05/18/2013)||0.41||4/24
|4/17/13 10:21||SELL||4||VIX1322E24||CBOE Volatility Index (VIX.XO) May13 24||0.60||4/23
|4/3/13 10:17||SELL||8||VIX1322E20||CBOE Volatility Index (VIX.XO) May13 20||0.68||4/23
|4/3/13 10:20||SELL||4||VIX1322E22||CBOE Volatility Index (VIX.XO) May13 22||0.60||4/23
|4/17/13 10:45||SELL||8||VIX1322E30||CBOE Volatility Index (VIX.XO) May13 30||0.40||4/23
|3/27/13 9:59||SELL||8||VIX1317D16||CBOE Volatility Index (VIX.XO) Apr13 16||0.59||4/18
|3/27/13 10:08||SELL||8||VIX1317D17||CBOE Volatility Index (VIX.XO) Apr13 17||0.57||4/18
|3/13/13 10:19||SELL||16||VIX1317D20||CBOE Volatility Index (VIX.XO) Apr13 20||0.55||4/18
|4/12/13 10:37||SELL||8||VIX1317D13||CBOE Volatility Index (VIX.XO) Apr13 13||0.57||4/16
|3/27/13 9:57||SELL||6||VIX1317D15||CBOE Volatility Index (VIX.XO) Apr13 15||0.82||4/16
|3/6/13 10:25||SELL||16||VIX1317P14||CBOE Volatility Index (VIX.XO) Apr13 14||0.72||4/16
|4/11/13 11:55||SELL||16||VIX1317D14||CBOE Volatility Index (VIX.XO) Apr13 14||0.33||4/16
|3/6/13 10:30||SELL||32||VIX1317P13||CBOE Volatility Index (VIX.XO) Apr13 13||0.30||4/15
|Chance of 50% account loss||0.0%|
|Chance of 100% account loss||0.0%|
|Average Profit to Drawdown (APD)||0.25|
|Average P/L per unit traded||$15.33|
No reviews have been written yet.
This fund is based on YZ's proprietary option trading system for income generation. YZ has been using this system successfully since 2004 in his live trading accounts and many privately managed accounts for his clients. YZ is humbly offering his system here at C2 for retail investors and traders who would like to invest in private (hedge) funds but not sufficiently capitalized to do so. In his live accounts, YZ trade mainly the futures and option on futures (ES, CL, GC, SI, EUR, VIX, ZN ...). But C2 does not offer options on futures; he has to use the corresponding ETF instead. For example, 500 SPY for 1 ES, 2500 USO for 1 CL.
This system takes advantage of the option time value decay by selling covered and uncovered options, credit or debt spreads and strangles. The system is not a speculating system to get rich (or bust) fast, it is designed to generate steady income month after month. Each trading signal is based on the following quantitative models.
1. Market trend model: based on technical analysis on the market of interest to determine the near term market trend (up, down, sideway). The model also considers the effects that certain markets are correlated, for example, US dollar is negatively correlated to SP500.
2. Position size model: based on margin requirements, potential market movements and the worst case scenario to determine the optimized sizes of positions to maximize the profits with manageable control of risk.
3. Position set up model: based on volatility, time to expiration and market trend to determine the option type (put or call) and the strike prices. The model considers both new positions and existing positions to balance the whole portfolio and maximizes the overall profit. Some positions may be set up to induce loss (as a hedge) for the balance of the whole portfolio.
4. Risk and profit management model: based on time to expiration, volatility and option premium to determine when to close the winning positions to release margin or when to close the losing positions if the calculated probability is high for the losing positions to turn into big losses.
Messages to subscribers
1. Capital: I recommend trading this system with at least 20k to generate a decent income after the fees. If your capital is different from the system's total equity, make sure you scale your trades accordingly. For example, if your account is 2 times the system equity you could sell 10 contracts for the signal of selling 5 contracts.
2. Brokerage: in my years of trading, I have tried all major brokers. However, in the past 4 years, I am settled with Interactive Brokers (IB), it is the best for my system with very low commissions. I highly recommend opening an IB account to trade my system.
3. Trading permission: if you use IB, you are ready to go once your account is approved for option trading. In other brokers, make sure you are approved to sell uncovered (naked) options.
4. Option trading: you need to understand the basics of options (put, call) and know how to enter the trade correctly. Most trade signals are Sell to Open (short) and Buy to Close (cover).
5. Trade signals: most trade signals are limit orders and sent during the trading hours (9:30-4:00 ET). It is ideal that you can find a way to auto trade my system. If you manually trade the system make sure you access to your email and trading account during the trading hours. C2 is not perfect, due to the spread in bid and ask, sometimes a trade is executed in a live account may not be executed at C2 or vice versa. Don't panic if that happens. What you need to do is checking my system frequently and make sure you match all the open positions as soon as you can.
6. New subscribers: If you start trading this system manually you should place trades to open positions that match all the currently open positions in the system except the positions which have very low premiums.
7. Questions: I will be happy to answer all your questions as quickly as I can. However, during trading hours I have many accounts to manage and will be busy trading. If I can't answer your questions during trading hours, I will certainly try it at night.
- This System Description text was submitted by the creator of this strategy. Collective2 verifies only trading signals and hypothetical trading results. We have not verified that this text above is an accurate system description. Remember there is a substantial risk of loss in trading. Past performance is not indicative of future results. Do not trade with money you cannot afford to lose.