Cost per set is a little more... because NF also has a premium component which decays by around 50 pts a month.
So our cost is
NF decay + PE leg 1 cost + PE leg 2 cost + Profit
50 + 225 +225 + 50 = 550
This doesn't have to be precise, you can round it off to 600.
Moreover, your selling points too do not have to be precisely at 100 point increase. This is to make sure that one doesnt sell too much too close, this could be very profitable or damaging, either way we want to gamble as least as possible. Therefore, I simply chose to sell at EOD, and place orders to sell PEs a little lower (or Buy NF at 25 pts correction). I have run some backtesting which says that two consecutive days average overlapping is almost 45% of ATR. So that is a powerful indication.
So our cost is
NF decay + PE leg 1 cost + PE leg 2 cost + Profit
50 + 225 +225 + 50 = 550
This doesn't have to be precise, you can round it off to 600.
Moreover, your selling points too do not have to be precisely at 100 point increase. This is to make sure that one doesnt sell too much too close, this could be very profitable or damaging, either way we want to gamble as least as possible. Therefore, I simply chose to sell at EOD, and place orders to sell PEs a little lower (or Buy NF at 25 pts correction). I have run some backtesting which says that two consecutive days average overlapping is almost 45% of ATR. So that is a powerful indication.