How to make money day trading in 2025 (start with edge)

[@JoelMillar-i6u]

Hey Mark, great video. Makes total sense! Love the content! Keep it coming!

[@zerodaymark]

Thanks let me know if you ever have questions or if there is anything specific you would like me to cover

[@markanderson2803]

always start with edge got it

[@billmietelski]

Mark, love 'The Marlboro Man' outfit in the thumbnail. :)

[@zerodaymark]

Yeehaw 🤠

[@borrow0987]

Thank you for the video! Trying to understand where the edge is coming from - how disabling lvl 1 and lvl 2 circuit breakers creates an edge in options?

[@zerodaymark]

The edge is mainly that market participants will close out their orders at end of day to meet their margin requirements along side that since the Limit down rule expires there is a little more volatility risk premium in the options present. Basically this is what I am theorizing creates a higher PCR / more edge than others times because there are more participants in the market buying back orders than selling less aggregate demand from the market to sell the more we will be compensated for it.

[@borrow0987]

@@zerodaymark ​thank you! In other words, if I get it right - the edge is mostly coming from other participants buying back options at the end of the day, to meet the margin requirements, right? So it's not only 15:25 specifically, but most EoD times(15:30, 15:35 etc.) 15:25 is slightly adds higher premium for risk, because circuit brakes are removed and theoretically the market might drop 7% within last 35 minutes.

[@zerodaymark]

@@borrow0987 Correct the basically the last hour people have to close out margin and they start then and market makers have to report risk to their clearing houses

[@patrickt.8250]

Mark how did you navigate yesterday? In a live action huge movement day, what did you do?

[@zerodaymark]

I did quite well 42% PCR on 0 DTE lost on some long hedges from the day before that were unrealized ended up about 20 bips on the portfolio

[@scottcurley748]

Hi Mark, got a question around VIX filtering, was yourr preference to use the VIX filter or do you think this strat is more effective with the VIX filter

[@zerodaymark]

I just wanted to show that even though we can use filters since it is still expected to make money with the filter the intent is to run it in all environments with no filter

[@RaziJavaherian]

About to indulge in some of this edge

[@vjsealy08]

Hey Mark, QQ for you: I was able to replicate the above test in OO but it appears that you selected “ignore trades with wide bid-ask spread”. Any particular reason why you chose this filter?

[@zerodaymark]

I usually use it to exclude very early data or data during the big covid drop. I have not seen it eliminate any 0 DTE trades since covid only for calendars. Basically wide bid ask I view as not very accurate data so I like to look at it with and without but for single leg orders on 0 DTE its never really a problem

[@vjsealy08]

Unchecking it adds back 15 trades and reduces the MAR by 50% (from 0.4 to 0.2). The overall test is still positive and it’s only a ~15% reduction to overall P/L but might be something to consider as perhaps a ‘worse case scenario’

[@zerodaymark]

@@vjsealy08 Correct this would be the worst case or we could consider it out of sample data but I like to beat up the backtest so including it makes sense

[@markmcnair5864]

I don’t know if you do any paid, 1-on-1 sessions, but I’m launching a small, 504 Reg D fund this next year and would love to meet up with you to learn from that perspective.

[@zerodaymark]

Dm on linkedin

[@anthonylowe7068]

Similar to card counting in Black Jack. You gain a .5 to 2% advantage. You just need to have a bankroll big enough to weather the negative variance on your way through 10,000+ hands.

[@zerodaymark]

Yes and for us that means play the long game