Discussing the article: "Trading Options Without Options (Part 3): Complex Option Strategies"

New comment
 

Check out the new article: Trading Options Without Options (Part 3): Complex Option Strategies.

The article discusses flat (non-directional) and trend-following (directional) option strategies and their implementation in MQL5. The EA described in the previous article is updated. The display of option levels has been added. Now it is time to examine the strategies used by options traders in practice and put them into action.

In the previous article in this series, we examined basic options strategies and tested how they performed in the real market. We have created an EA that implements an options strategy. Now it is time to examine the strategies used by options traders in practice, put them into action. and discover the new opportunities that options trading offers.

Before moving on, we will add the ability to display current option levels to the EA. To facilitate visual monitoring of the trading process, it would be helpful to see, within the terminal, the position of the underlying asset’s current price relative to the option levels used in the simulation. Let's do this and test it using the option strategies discussed in Part 2 as examples.

We will display option levels as lines extending from the start of the day to the current time. It would also be helpful to see the strike price(s) displayed on the terminal screen. First, let's define the CalculateLevelPrice method. In fact, this method performs the inverse operation — it calculates the relative price based on a given option delta value. From the relative price, we will obtain a specific absolute price value for each option level.


Author: Dmitriy Skub

 
Brilliant! Thanks a lot – I’ve given it a like without even looking… I’m learning how to trade options. I’m reading the article. It’s a great topic!
 

That’s a brilliant idea!

Could you please tell me whether it matters what type of account it is – hedged or unhedged?

Also, no matter what market opening time you set, the base level is always from the start of the day. Is that how it’s supposed to be? It doesn’t seem very logical...

Thanks in advance!

 
saracenn #:

That’s a brilliant idea!

Could you please tell me whether it matters what type of account it is – hedged or non-hedged?

Also, no matter what market opening time you set, the base level is always set at the start of the day. Is that how it’s supposed to be? It doesn’t seem very logical...

Thanks in advance!

I missed your message. Actually, I haven’t tested the robot on netting accounts. There will always be a single position there, and you’ll need to reduce or increase the volume when rebalancing. I think positions will open, but I’m not sure about them closing correctly. The expert advisor needs adjusting.

If we’re talking about

input int AddNewFromHours = 1; // Add New Hours (0...23) From

then this isn’t the market opening time – it’s the time within the day at which the expert advisor starts trading.

The position of the option levels is determined based on historical volatility (HV). It does not depend on this parameter.

Something like that. If anything isn’t clear, just ask.

 
Dmitriy Skub #:

To be honest, I haven’t tested the robot on netting accounts.

So that’s it!

And I was wondering why it didn’t match up with my trade execution,

I’d completely forgotten about the hedging accounts)

 
Sergey Chalyshev #:

So that’s what it is!

And I’m wondering why it doesn’t match up with my trading strategy,

I’d completely forgotten about the hedge accounts)

In one of my next articles, I plan to cover netting. The fourth article will be out soon – quite an interesting one, in my view.

Generally speaking, there’s still plenty more to share in this area and in general.

Do you do any simulation trading on the Moscow Exchange?

 
Dmitriy Skub #:

In one of my next articles, I plan to cover netting. The fourth article will be out soon – quite an interesting one, in my opinion.

Generally speaking, there’s still plenty more to share in this area and in general.

Do you do any emulation on the Moscow Exchange?

I haven’t got as far as putting it into practice yet; I’ve stopped at the research stage.

I’ve put this topic on hold for now, but I’m reading your articles with interest. Thank you for the articles!

Perhaps your next articles will inspire me to pick it up again)

I can share the code for my implementation; I’ve even got an options calculator lying around somewhere.

If you’re interested, drop me a private message.

 
Sergey Chalyshev #:

It never made it to practical application; it remained at the research stage.

I’ve put this topic on hold for now, but I’m reading your articles with interest. Thank you for the articles!

Perhaps your next articles will inspire me to take it up again)

I can share the code for my implementation; I’ve even got an options calculator lying around somewhere.

If you’re interested, drop me a private message.

It sounds interesting, but I don’t need it just yet – I need to keep my independence of thought for now.
New comment