Euan Sinclair - Positional Option Trading (S3E12)
Flirting with Models
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How to Make Money Trading Model Driven Trades
The model driven trades strike me as something that you can lose a lot of money on if you just have the wrong model for the way market operates. You can perhaps try to fit the volatility surface, and you can see where options are priced above or below your fits. But if your surface is just wrong, or you're missing some sort of event,. it could be inherently a very easy way to lose money if you're modelling the world incorrectly. How anuance does that model really need to be? Do you thinkYes, when you're trading according to a model, you have to have a good model. That sort of, i wouldn't say it's obvious, because a lot
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