@doss186 Just my $2 cents.
What you have posted is very commonly known.
1. Your data on paper will look neat, forget the trend for a while, bcos trend will be in hindsight.
Back-testing should be done not on EOD data alone,
what are your results with how many times your shorting SL is hit?
2. There is something called Volatility Smile. IV increases as you go away from ATM, so many paper strategies will give holy grail results in back-test.
3. With deep ITM and shorting, you aren't discussing ROCE.
That should be part of your extensive research.
4. "Shorting options will give you more profit than shorting futures"
your quote should also say, "Shorting options can make more loss as well"
5. with deep ITM&OTM, spread is larger, volume is lower, did you analyze slippage? Shorting naked puts by Industry standards is considered as the riskiest.
You strategies should employ "Option strategies".
What you have posted is very commonly known.
1. Your data on paper will look neat, forget the trend for a while, bcos trend will be in hindsight.
Back-testing should be done not on EOD data alone,
what are your results with how many times your shorting SL is hit?
2. There is something called Volatility Smile. IV increases as you go away from ATM, so many paper strategies will give holy grail results in back-test.
3. With deep ITM and shorting, you aren't discussing ROCE.
That should be part of your extensive research.
4. "Shorting options will give you more profit than shorting futures"
your quote should also say, "Shorting options can make more loss as well"
5. with deep ITM&OTM, spread is larger, volume is lower, did you analyze slippage? Shorting naked puts by Industry standards is considered as the riskiest.
You strategies should employ "Option strategies".