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What can go wrong

Before considering how any system performs, understand how this kind of logic fails. Everything on this page applies to every system we sell and every rule set we test.

What can go wrong

Options selling makes small gains often and occasional large losses. Any buyer should understand how this logic fails before considering how it performs.

Losses can exceed the premium received

Short option positions carry theoretically unlimited loss on the upside and very large loss on the downside. A single adverse session can remove the gains of many profitable ones.

Gap risk cannot be hedged by stop losses

Index options reprice on the open. A stop placed in the rules does not protect against a move that happens overnight or between ticks, and fills can be far from the intended level.

Testing is not trading

Every result we disclose is simulated on historical data. Simulation cannot reproduce queue position, partial fills, broker latency, or the decisions a human makes watching a losing position.

Market regimes change

Logic is written against conditions that existed in the test period. Volatility regimes, expiry structure, lot sizes and exchange rules all change, and a rule set that suited one regime may not suit the next.

Execution is entirely yours

We do not place trades, hold funds, or monitor positions. Slippage, outages, margin calls, mis-configured orders and broker failures are the buyer's risk alone.

Capital and margin requirements are real

Short option strategies require sustained margin. Margin rules are set by the exchange and clearing corporation and can be raised without notice, forcing positions to be closed at a loss.

What we disclose, and when

We do not publish performance figures on this website. Returns, drawdowns, the cost and slippage assumptions behind them, and the specific periods where a system performed badly are disclosed in full to a qualified buyer after a mutual non-disclosure agreement.

Those figures are simulated results on historical data. They are not a record of live trading and they are not indicative of future results. The method behind every figure is published on How we test.

We are not registered with SEBI in any capacity. We do not provide investment advice, recommendations, research reports, trading signals, or portfolio management. We sell software and documentation. Whether a system is appropriate for you is your decision, taken with your own advisers.