I found the Holy Grail System
I got inspiration for my "holy grail" system from that movie. A system that predicts what prices WILL do will never work. I instead developed a system that doesnt care where prices go. Its called dynamic hedging. LTCM developed and used this method. Fund managers and traders waste all their time trying to study trends and future expectations, trying to work out where prices WILL go, instead of thinking about how to make money no matter the outcome.
Think of it like this:
There is a roulette wheel. I am the casino. Since it is MY casino and MY roulette wheel, I get to say who can bet what on the table. Lets say I allow one trader to put $5 on black, and allow another trader to put $5 on red. Do I now care what the outcome is? NO. If red wins, trader A loses $5 which I give to trader B, I lose nothing. If black wins, trader B loses $5 and I give that to trader A, I lose nothing. If zero comes up, I win both traders money. Now one might consider the odds of me winning as low, and consider the system useless. The system uses written calls as its red and written puts as its black, and zero on the wheel is the exercise price of the options. I have developed a computer program to simulate the system and have run it more than 10,000 times.
It has NEVER made a loss. The average win was 270% p.a The lowest return was 25% p.a The highest return was 650% p.a
I am currently looking for investors to get the system off the ground. Required capital is approx $1m.
