Andrew Falde

Portfolio manager with expertise in analytics and automated systems

Target Volatility Tip

You can use recent historic volatility to help you be more consistently profitable in your trading and investing. This video will show you proof using 20 years of market data. This is a simple tool that you can begin using immediately to take less risk and have more consistent returns. Send me an email with …

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Target Volatility Model

If you would like to learn more strategies and techniques to actively manage your investments like this, join one of our programs now https://formafinancial.com/join 

More Consistent Income. No Taxes.

In this session, Dorian Punj shares some power insights and a unique opportunity. Where to invest for more consistent, diversified income How to use dividends to fund your options trading strategies Exactly where to live to pay the lowest taxes (even zero) The career plan for traders who are committed to trading big and legally paying no taxes

November 6, 2019

Don Brady reviews an extensive amount of data for GC (Gold futures), CL (Crude Oil), SP (S&P 500 Futures), and ZS (Soybean futures) on the Donchian / Price Channel using his extensively cleaned up proprietary database of futures options data. The major takeaway for me is that breakouts on any time frame should be respected …

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October 30, 2019

Matt Williamson, a successful quantitative options trader shares some important warnings about the use of back testing for your trading.

October 23, 2019

Please note that these were the early results of a study and there are errors present. The concepts are worth your attention but do not rely on the specific results as presented. Hedged Permanent Portfolio Back Test by Chris Stockton using GLD, SPY, TLT with stock and back ratio hedge.

October 2, 2019

Why diversification is winning in the current volatility. How the commissions race to the bottom may help improve your trading. A quick discussion about Beta-weighted profiles for strategic sizing and discretionary trading. How the micro-presentation is the tool of choice for the collaborative trader.

September 25, 2019

This week we answer questions live and look deeper into Eric’s trading system. Starting point for EasyLanguage conversion. (Note: if you don’t write code or you don’t have TradeStation, this is just a bonus and not required to benefit from our looking into this strategy) {Incomplete 9/25/2019} {Incomplete 9/25/2019} Inputs: ATRlookback(30), FastMA(20), SlowMA(50); Vars: ATR(0), …

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September 18, 2019

Summary We take a closer look at Eric Hoyle’s momentum strategy and begin to convert to EasyLanguage We take a quick look at a investment portfolio model using Sharp ratio to optimize allocation Starting point for EasyLanguage conversion. (Note: if you don’t write code or you don’t have TradeStation, this is just a bonus and …

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September 11, 2019

Summary Fully automated has begun Launch Your Funded Trading Business Portfolio sizing update Review progress updates Market discussion Potential format for the next challenge

August 29, 2019

Summary Early idea for pairs trading using Data2 in tradestation EasyLanguage Interview with Matt Williamson on his methods for trading long and short volatility in a variety of underlying markets

August 21, 2019

Summary Website updates Updated sizing lesson reference Refined vision and mission Announce challenge winners (officially) ACV review

SPX 50 MA + Price Action

This week we reviewed current market conditions, reviewed the big picture of how we use ideas and iterative loops, and we looked at a specific strategy from Gerardo which is a good example of doing this. “Zoom out before we zoom in” Big Picture Objective: A portfolio of diversified income and growth strategies with a …

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SPX ITM Spreads

We started this week off by answering a question about options that are “Near-Near” vs. “Far-Far” options. If the Delta of the strikes is the same, but the DTE’s are vastly different, we can see where our max risk really lies. This was a quick (aka incomplete) look at this. Please spend more time evaluating …

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VMA

In this group mentoring meeting, we cover the Passive Portfolio Layer and the VMA credit spread strategy (VMA review begins around minute 30). Strategy Rules(For Members Only, Please Do Not Distribute) This strategy was submitted for the June 2019 4-Week Options Trading Strategy Challenge by Vincent Barone: Long Name of the strategy: 10 GC ACVO …

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What Is True Diversification?

I often reference the concept of True Diversification to my clients and fellow traders.  Which often brings back questions about the meaning of that term. First we’ll contrast true diversification to traditional diversification, which is simply owning/investing in a lot of different things.  True diversification goes beyond “owning” and brings in short selling, income strategies, directional, multiple time frames, multiple strategy types, …

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Group Mentoring: April 17, 2019

In this session we look at Don Brady’s latest research tool that he has generously shared with us. This data looks at Crude Oil (CL) futures options vertical spreads on Donchian (Price) Channel signals.

Group Mentoring: March 20, 2019

Session Contents: Setting expectations for out of sample results (planning for success and failure of a strategy) Easy language for multiple time frame moving averages (ACVO style) First release of portfolio semi-optimization! Three-State xAverage Easy Language Inputs: maf(4), mam(13), mas(20); Variables: fv(0), mv(0), sv(0), condition(0); fv = xaverage(c,maf); mv = xaverage(c,mam); sv = xaverage(c,mas); If …

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ACV Walk Through

Pardon the little confusion for the first couple of minutes while I got in sync withe the overlapping entries. It gets smoother as we get into it.

Group Mentoring: March 13, 2019

Session Contents: Potential Hack for ETF Commissions ACV Open Review SSJ and SSK Announcement Review of how to size strategies Interpreting individual vs. basket stats to keep the big picture when selecting portfolio components

Multiple Timeframe Price (Donchian) Channel Easy Language Code

Inputs: LB1(1), LB2(5), LB3(25), ontouch(0); Vars: ud1(0), ud2(0), ud3(0), ld1(0), ld2(0), ld3(0), one(0), two(0), three(0), net(0); ud1 = highest(h,lb1)[1]; ud2 = highest(h,lb2)[1]; ud3 = highest(h,lb3)[1]; ld1 = lowest(l,lb1)[1]; ld2 = lowest(l,lb2)[1]; ld3 = lowest(l,lb3)[1]; If H > ud1 and L > ld1 then one = 1; If L < ld1 and H < ud1 then …

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Group Mentoring: Rapid Modeling, Six Examples, Tips to Feel Less Lost. (TLT, CL, SPX, VXXB, RUT)

Session Contents: Tips to rapidly model options strategies in minutes rather than days or weeks. A new “quick ratio” for evaluating the performance of your rapidly modeled strategies to know if you should spend more time studying the strategy or move on to something else. A discussion on the benefits and challenges of market neutral …

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Long Options Strategy That [Apparently] Works and a Sizing Strategy that Takes One Strategy to Production-Ready

This week we look at two contributions from members. The first is a LONG options strategy–something we don’t talk about a lot–that is hinting at an opportunity in the “tail reward” category. The second is a sizing technique that has taken one strategy to ready-to-run status for an incubator account! This sizing technique may be …

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SPX Credit Spread on Bullish Breakouts (Rapid Dash Mash Up)

This is a continuation of our last session with a different strategy (price channel) in a different market (SPX). This signal is not very good, but the options trade is solid. After Christmas and still recovering from a head cold, I’m surprised we got a full year done on this study. Thanks to Jon and …

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Predictions

This is one of my favorite graphics — showing how quickly yesterday’s predictions are forgotten while attention shifts to the next big, bold, and exciting prediction. I have no predictions for you. It’s entirely possible to navigate the market without trying to predict — or trying to predict which experts are going to be right. …

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Backing Into Positive Expectancy on a Discretionary Trade

The broad stock market remains weak, so we continue to look for momentum opportunities in commodity markets instead of playing for income in indexes. We spend some time in this session going over the math and tracking process used to help discretionary traders identify the trade type, stop loss, and profit target that will allow …

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Walk Through Single Size Multiple Time Frame Study

After a look at the current market conditions, we do an extended walkthrough of the single size multiple time frame study. While it looks better than nearly any other “pure” momentum strategy and better than most portfolios of multiple time frames, it’s really just one of the very first studies for this specific concept. It …

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Mean Momentum Strategy, Order Types, and /CL Data Mining

Here’s our first look at the Mean Momentum strategy. There are two main goals with this approach. Evaluate the opportunity to be neutral when price moves away from either side of the Donchian Channel Have directional trades that use a mean reversion bias that is backed by a reason to exit if the trend resumes …

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Example of Trend Following /GC Using Options

In this session, we walk through a trade-by-trade study of using GC options on the underlying 30-period Donchian (Price) Channel. Looking back, I would have picked a period of time that had more losers because this specific study makes it look like you can almost never lose. Either way, this session shows you the process …

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See The Power of Diversification: Time Frame, Market, Method

In this session, we review two major concepts. The first is “being wrong generating profits”. The images below show one of the worst versions of our momentum trading systems in /CL (crude oil futures). Then we zoom in and test one of the worst periods during that history. This is the worst of the worst. …

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Garrett’s Trend and Neutral Strategy

This specific strategy is being executed in our seed capital program. This is a powerful blend of momentum and neutral trading. Garrett has developed a multi-moving average analysis technique to filter out choppier markets when momentum trading can be whipsawed and neutral trading is more likely to have stronger performance. We believe that the concepts …

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Bruce’s Stats Table and Turning a Bad Idea into Profits

Bruce Bitner, a member of the Falde Trading community and part of the funded seed capital program, has done an excellent job of summarizing key stats for a basket of studies that he recently completed. Below, we’ll cover the benefits of summarizing this way — which makes for quick and easy reference as to the …

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Wrong and Profitable

Would you trade a directional strategy that has this history? Well, I just might. Watch this video to see why… What’s the edge? Far OTM and Long-dated options reduce overnight exposure to gaps. Longer-dated options also limit the exposure to volatility spikes due to transitioning from contango to backwardation… because we are in the expiration dates that …

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Price Channel Study, Directional BWB, DC Radar, Futures Options Funding, Make Progress

PDF: Group Mentoring Meeting Notes 2018-10-12 Great session to wrap up a week of collaborative development! More importantly, we are spending time making plans to turn the extensive amount of data into simple and practical trading plans. Each one will have a different path to accomplish this. Those who are making the most progress are keeping …

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CL Netzero, Portfolio Trading, Directional Filtering, Solving Data Overload

Note: Jump to 03:45 in the video Chris Gursansky’s 46-30-(Net Positive), 100 DTE, /CL Options Study Entry: The last touch of 20 Period Donchian (Price) Channel was on the upside (this was verified by Chris after the meeting) First expiration more than 100 DTE Put Broken Wing Butterfly Upper and Middle strikes nearest to 46 …

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Testing Automated Options Trading and Bullish Structures

 Our first informal study session. Had technical issues and the meeting was cut off. We worked on setting up a simulation of automated options trading in Tradestation and continued a study on PCS and Long Calls to identify the better performing parameters for each. A LONG way to go on both of these. I’m …

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