👉 Net return %: +8.34%
👉 Net return ETH: +0.403 ETH
👉 number of trades: 10
👉 number of option traded: 382
👉 fees paid ETH: +0.2292 ETH
Hi CryptOptioners,
I wired out from Poloniex on Feb 23, 2021 what resulted in a 2.083732 ETH deposit on Deribit.com. And it took ages - almost 2 hours! But we’re in now ;)
This post it titled “Day 0 to 5” because I have not written at all prior to today, March 2nd, 2021 when I got the idea to start “trading in public” with CryptOptions.
Recap of these first 5 days of crypto options trading
A nice start… then woo.
Things started nicely, with a +12,9% the first day (three trades) but completely lost my head as I closed my long call ETH-25FEB21-1620 and turned long call ETH-5MAR21-1720… I was definitely too tactically bullish on that same first day.
Which led to a -50% loss on my third day of trading.
What I’ve learned.
Greed. Waiting too long to take profits. A few hours after taking a long bet on ETH-5MAR21-1720-C, I could have locked in more than +40% additional profits but thought the trend would continue upward.
📉 Two days later, I therefore closed my long call ETH-5MAR21-1720 with a -49.91% loss.It is not because you bullish that you can’t be bearish. It depends upon your time horizon. As things continued to go south for ETH, after closing my long call ETH-5MAR21-1720, I decided to be long put ETH-5MAR21-1440.
📈 I got it right and 2h30 later, on that same 3rd day, I closed this long put ETH-5MAR21-1440 with a +31.82% profit
My strategy going forward.
As I am trading options, derivatives instruments which imply leverage, I think a proper strategy to mitigate risk is to cut losses and profits quickly. Yes, profits too. “Small step profits”.
What does quickly means? I will test & learn it but as you can see, I’ve locked profits as low as +1.4% in the days that followed what is already named in CryptOptions’ world “DAY "3”.
That’s all for today,
Speak soon, Raph.