I taught a beginner how to day trade (0dte) - ZeroDayMark

[@RaziJavaherian]

So good love this go Connor

[@salvatoreviticchie7671]

he mentioned a video at minute 6:00 a navigation trading video cannot find it in your playlists can you please share the link?

[@zerodaymark]

Navigation is a paid options community and discord they are called navigation trading. A good source of information

[@loubob21]

I have a question about the backtesting on the 9:32 trade. You are using a defined amount of credit to determine strike placement. When SPX was $3600 to $4200 in 2022/2023 wouldn’t that place you a lot closer to the money than we are today at $5900? And wouldn’t that affect your win rate at that time? Why not skew deltas instead? Thanks for all the info videos.

[@zerodaymark]

It depends more on volatility than SPX price VIX level basically. But yes in times of higher vol with larger SPX you could go closer I just choose those premiums because they were consistent over all volatility environments also with using a stop loss collecting more of less premium the win rate is still pretty similar collecting more or less. You can trade more aggressively premium wise the key is finding what works for you and what you want to stick with

[@TerryJulianLive]

Why so much with credit spreads? Why not debit spreads? I've been doing 0 DTE with debit spreads and its nice not having to lock up soo much cash. Do you have any insight on why credit spreads are your thing?

[@zerodaymark]

I do both debit and credit spreads I like the debit spreads as well especially on the call side. The debit spreads are not as consistent as the credit spreads but pay bigger so it depends on your preference

[@loubob21]

Came here from your Tasty interview. Was wondering about the IC every two minutes thing and the 7 dte long calls and puts. Are you limiting the number of IC as a ratio of the 7 dte and shorter longs? Or are you limited by buying power. Very interesting strategy

[@zerodaymark]

I target a fixed credit for my credit selling instead of a delta. I do not limit the ratio. For the long options I am usually about 5x my account vs SPX size on the put side long and 10x long the call side. 1x your account for SPX being a $600k instrument would be 1 lot for every $600k your acct is. This is excluding my credit trades that is a more of a personal preference how large you would like to size each. I choose this size because the credit and debit side both end up having a max drawdown of around -5% so if they both occur at the same time my max drawdown should be around -10%

[@loubob21]

@ Thank you so much for replying. If I may clarify for my understanding. You would normally limit the IC credit trades so that if you lose one side it would 5% of your total account and if we had a massive whipsaw day and you lost both sides you would have a max 10% loss. The 7 dte longs are one lot, meaning 2 calls and 1 put, for a cost of $50 each for each 60k of account size. So a 600k account would have 10 calls and 5 puts purchased everyday at 7 dte. And this cost would be offset by the credit income from zero dte. And this “ hedge” could also act a a lottery ticket like Aug 5th or Trump win? I’m sure you’re super busy, you don’t have to answer my questions, just trying to understand the mechanical. I can backtest if I know the parameters. Thanks again.

[@zerodaymark]

@@loubob21 I view the long hedges as just a separate source of edge they just so happen to usually hedge my losses and provide margin relief from a BPR perspective. I trade much smaller than that I sell about 0.5% of my account value in credit per day and manage that with a stop loss I would recommend backtesting your strategy and learning how to match your backtest instead of then you can begin to trade a strategy once you are more certain of the edge and risk associated with it

[@kurkinet55]

Hi Mark, what's the name of this program to do the back test? Thanks!

[@zerodaymark]

@@kurkinet55 options omega there is a discount code for 50% off in the description

[@loubob21]

You have blackout dates listed on your 245 back test. When I remove them there is almost no difference in the results. What are those blackout dates? Fed Rates? Thank you. When you change the backtest dates to daily only you get much more impressive results. probably because there were no Tuesday trades before that?

[@zerodaymark]

FOMC meetings rate announcements i do not trade them. When we look at the time since SPX dallies that is a more inclusive picture of volatility because before that we only 3 of the 5 days of the week. This trade also looks like it struggles in very high vol but we are also collecting a lot more premium at the same delta in 2020 so worth monitoring but those are my thoughts around it

[@loubob21]

I’m full of questions. On the 932 trade you close the tested short only at 4x loss and you keep the long on. In the last two days I have closed the long also and reduced my losses considerably. The back test must have a few trades where the short was closed at 4x but then the longs ended up making a huge profit if left on. Is that the only reason you keep the longs on? Thanks again.

[@zerodaymark]

I usually re use the longs for other trades I also usually buy $0.10 longs so it does not make much difference. The main thing is to make sure you only manage the short leg to limit the slippage to exit you can hold or sell the long back after that

[@mariogeorgiev3745]

The total numbers since SPX daily are good, BUT...The back-test shows for some reason calendar strategy start losing money from October 2024 and continues...This is 100+ days loses. Some comments on this will be appreciated.

[@zerodaymark]

Yeah it depends a little so when you look back to 2016 it is quite common that a trade will loose an entire year on Mondays, Wednesdays or Friday entrances but never stays that way for 2 consecutive years just based on the gaps that occurred during that year. So i would say diversify your days of week entry first. in regards to all calendars getting smoked since then calendars often have small wins and large losses and are risk defined so edge can be much smaller since we had the massive VIX spike along with vol being held up with the election that really dragged calendars performance from those two events. Also in regards to expectations even the best strategies i expect to not make any money over 90 days periods about 1 quarter a year the real thing is if that happens for 2 or 3 quarters in a row its a red falg

[@nixodian]

Optionmega back test vs ib backtester v TW back tester, which better?

[@zerodaymark]

I use options omega and have the most experience with them. i recommend them but as long as your backtest match your actual results its a good backtest

[@nixodian]

Is ib or tw backtrster gd? Used them? Omega costs and above free. Also TOS

[@borrow0987]

One idea for the next video might be to show that the Calendars are more profitable if we use further DTE for Long legs(i.e. instead of 2-4 DTE use 2-7 DTE) and explain why. Thanks for the video 👍

[@zerodaymark]

Yeah they are more profitable and take more risk higher debit higher P/L we can scale up shorter duration calendars since they are debit trades and we are not BPR constrained

[@tlmarcott]

@zerodaymark After 2 years, I'm pretty good at 0 DTE in SPX, RUT and NDX. Primarily iron flies and spreads. I use momentum analysis and some fancy gamma tools like Gexbot. I manage by dropping a short or sometimes adding to the trade. I also want a good retirement so I try to be done by 11 am cst. I have some core tbill and stock positions. I Tasty trade and Tom King trade. 0 DTE is the most fun but I suck at hedges. Any recommendations? I totally agree on the emotional and discipline side of trading. My worst losses have been when I have frozen and hoped for a turn around.

[@zerodaymark]

It depends how big your account is but look at long 1 dte and 7 DTE straddles as well as long calls with a few days in trade and profits takes 7 DTE+ out

[@pilotstefan1322]

Ive run a few of these strategies for about 6weeks now, looking to start automating them, would you recommend Trade Steward or TAT?

[@zerodaymark]

It's just a personal preference of what you would like as long as you use the STD stops on TS there is not much difference. IBKR will pay you risk free yield on your account of like 4% which is nice it helps cover commission cost

[@Farofeiro231]

@@zerodaymark Do you use or have used TAT? I've been trying to, but there seems to be an issue with the entry conditions (like to set a scheduled trade to happen only when VIX gaps up or something like that).

[@zerodaymark]

@@Farofeiro231 I use them all TAT, trade steward whisper trade and tradmate. Yeah you can set it with that on TAT it came out i the newest release

[@jeyarajkarthik]

Please make an offline video of couple of your trades with a simple snapshot of shorts, longs and hedges

[@gonefishin1370]

So amazing! Always enjoyed the options..options offer. Would love to chat!

[@zerodaymark]

Glad you like the content, would be happy to chat. Grab some time on my calendar!

[@justinbridgez]

this was kinda fasinating and fun and different trading related content. i would love if yall continued to share (what all wanted) but enough we can folllow the journey. super unique and..at a level where people can foilow..its got alpha. yes tasty let me find you,,

[@zerodaymark]

Will do we are taking it step by step as long as it takes connor to figure it out and letting him make mistakes along the way

[@TonyJackson44]

How do I learn? Where do I sign up?

[@zerodaymark]

Just keep following along on youtube I do not provide any coaching just showing a friend how to trade and documenting the progress on the internet

[@Mr.Anderson-y2j]

​@@zerodaymark please consider doing some live streams of your trading process.

[@zerodaymark]

@@Mr.Anderson-y2j working towards it we will start to show Connors trade resutls and backtest which match actual trading

[@anthonylowe7068]

I don’t usually watch the tasty rising star videos bc they never give any real insight into peoples strategies just more of an overview. I’ve been catching up with all of your videos for about a month now and clicked on the interview assuming it was one of your uploads. I don’t remember you mentioning on your channel that your bots trade that many times per day (crazy). Anyways tasty should have dropped your KZbin name somewhere so people could find you easier. Good luck and I look forward to new content.

[@Mr.Anderson-y2j]

Can you do a live stream of your trading?

[@zerodaymark]

Working on doing that soon!