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Early Trading Tweaks in 2023

Following an interesting year, I've carried over some protocols from 2022 that I wouldn't necessarily use in other markets.


Primarily, I'm starting 2023 committing capital as I typically would. However, I spent time last year optimizing strategy details for options structures such as short straddles, short strangles, and even naked short puts and calls.


A big part of the strategy optimization is profit taking bands. I regularly avoid taking profits too early, to avoid negatively impacting my expectancy unnecessarily. It also is a primary behavior that regularly plagues traders (allowing losses to compound and cutting winners short). In bear markets, I realize profits more quickly in some strategies and less quickly in others. I generally prefer to align to the broader market trend. For example, in bear markets, I'll allow short calls to run a bit more than naked short puts and vice versa in bull markets.


It may not sound like much, but it's important to remember our trading performance is the amalgamation of thousands of trades, year over year. These small details are what drive my performance.

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