• TheStrangle

Review Time - how did we do?

Time flies. I have the feeling we started "The Strangle" just some weeks ago but we are already 10 months into the game. So why not look back and check where we are - and look forward, where we might be going? Yep, let's do that.

Win-Loss ratio

Within these 10 months we closed 64 trades. The win-loss ratio is 53 to 11 which equals 82% to 18 %. This is much much better than expected. We were hoping to achieve a ratio of 55% to 45 %.

Result per trade

On average we achieved a profit of 48 % per trade. As we open each strangle with around 2.000 $ this equals to a profit of 960 $ per trade. Some members might have achieved way more profit as they invest 5 K or 10 K or even more into each trade. We have to stick with 2.000 $ so we can compare all the trades over time.

Total profit

All trades together netted us a profit before taxes of over 65.000 $ !

Whats next ? Compounding !

But the profit could have been much higher. How's that? If we compound by using profits to increase the trade size. We started with 30.000 $ capital which we deployed in max. 15 trades each for 2.000 $. As soon as the profits sum up to the amount of 10 trades, then we increase the amount for each trade. Let me show you how it works:

Capital 30.000 $ => Trade size = 30.000 / 15 => 2.000 $

Profits 20.000 $


50.000 $

divide by 15 ~ 3.300 $ => New trades will be done with 3.300 $.

And then you start the process again. In our case we would now have a capital of 150.000 $ and invest 10.000 $ in each trade. By compounding our capital would have grown by factor 5. The normal way (always invest the same lump sum of 2.000 $ resulted in 65.000 $ which means we doubled our capital). With compounding a Quintupel (5x) was possible.

Let's hope that the next 10 months will be as nice to us as the past. But keep in mind: Losses are inevitable and we never had a bad cluster where loss after loss came in. Statistically we are ripe for desaster.

Strangle ahead