Additional RMS and Rebalance

For risk management and rebalancing, several factors are taken into consideration:

Fundamental Events – Like such speeches by the Prime Minister or Finance Minister, rate changes, Supreme Court rulings, key AGMs, GDP updates, report outcomes, significant happenings, etc.

Option Greek Anomalies – The nuanced interplay of Delta, Gamma, and Theta unveils a spectrum of strategic prospects

Open Interest Data – Monitoring spikes in open interest and employing various open interest models like the volatility cone, max pain deviation, etc.

Certain Statistical Conditions – Leveraging advanced statistical methodologies like Bayesian Inference alongside Markov Chain processes, the model discerns underlying market dynamics, aiding in the meticulous crafting of exit strategies to mitigate risks and preserve capital.

Optimization

Each leg of the trade is monitored individually as if they are separate trades. There are two methods for profit maximization:

Stop Loss Optimization – Exit the trade when the premium expands and reaches the stop loss level, then re-enter based on new resistance (for call options) or new support (for put options).

Profit Optimization – Exit the trade once a specified percentage of the premium has been eroded, to potentially seek better opportunities.

Typically, various rebalancing systems are employed based on the account’s past profit, which often leads to deviations from the projected graph.