Trading Philosophies & Systems Development Philosophies
Discover some of our trading and systems philosophies below. These are many of the ways of thinking behind approaches to trading and approaches to systems development.
In order to achieve success in the markets one will have to take a very brutally honest approach. There is no need anymore to get caught up in the imagination and basically lie to ourselves. We want to make the magical happened so badly or we want to indulge in the euphoria that comes from a winning trade so badly, that we can very easily ignore certain facts and stretch certain truths. And if you think about it that’s a general life principle. You can learn quite a bit from trading the markets, about life and about yourself!
The thing to understand is that ultimately no one can predict the future outside of the supernatural. We can all try and guess and think we can, thinking we have special powers because we watched too many superhero shows or read too many comic books… But ultimately the more we are honest, the more quickly we can get to success and trading.
How is that?
Well when you are honest with yourself and about how the markets work you have the facts. And when you have the facts then you can develop solutions around the facts. But it is easy for people to stumble on the facts because trading can get so emotional, and never make progress. We are here to break that pattern.
Ultimately you have to admit you are taking a chance, “rolling the dice” on each trade. Essentially all trading is the “g word” not wanting to spell it out for search engine purposes. There is a “ling” on the end of the word and is related to rolling the dice, where as you don’t know the outcome, but you’re taking a chance on it.
When you finally admit that you do not know the outcome, no matter how smart you think you are, you then start putting yourself in a smarter position. You then start trading better, smarter, more proven, higher probability trading setups with better money management. You avoid winging in and emotional flings with the market. You develop a fair mindedness about trading. You become honest with what you are doing with the money you put into trades where are ok with losing that entire amount you put into a trade. So then you start forcing yourself into taking high probability trades on a past proven system or a set up only, and you stop fooling around with the markets. Therefore, your whole world of trading starts changing as you start putting yourself into logical positions to win and your trading story starts to resemble from failure to success as seen, for example in Jack Schawager’s Market Wizard’s books.
Let’s review that:
Well when you are honest about the fact that you are taking that chance on the next trade then you realize that the money you are putting up is at risk. And if you are going to put your money at risk then you need to put that risk on a high probability trading setup. No longer can you afford to put money into whimsical ideas that have no grounding no basis and no proven probability. So therefore you can become a lot better trader that you are freed up mentally and emotionally through honest admission of what you were doing to take a chance on high probability with position sizing that is fitting to that probability of a trading setup based on a past proven strategy or system. You now enter the realm of smart trading and putting yourself in a position to win.
We make trading systems. They should will be considered hypothetical no matter how much they are traded or not; plus one persons attention span to trading a system will differ from another so results will always vary with the same set of rules. All systems are hypothetical no matter how much they give you the sales pitch of a “real system” – you can’t predict the future, if you’re honest. Just like in franchising, if you are going to use a business model that has proven itself in the past, a operations manual, a business system proven before (like Subway, McDonalds etc) then you put yourself in a much higher probability position for winning into the future. But you are still taking the chance of success or failure, albeit higher probability chance when using a franchise system. The same goes with a good trading system!!
We employ the following trading philosophies:
- The “Trading for a Good Living Philosophy” – this is where we develop systems based of the mind set of having systems to trade that can stand the test of time, potentially netting out year end and year out.
- The “Hunter Speculator Philosophy” – Strategic trading at its best. The love of trading is born here. We use strategy to optimize and anticipate great potential trade setups.
- The “Stupid Simple Trading Philosophy” Blunt trading systems, methods that are super simple to execute that can smash us out a nice net profit.
- The “JackPOT Philosophy” – sounds corny but the way of thinking goes a long way in trading in that if you start to look at your high probability trading system setups as a ‘gamble” in that you need to “roll the dice” or “flip a coin” then you have a more fair approach to actually taking your trade setup. Systems out of this philosophy are developed also so when a trade succeeds it can do so richly!
- Create Your Own Trading Business Philosophy – Form Your Own Options Trading Company… Formalize the process of trading options to help focus, organization and a more serious, business like execution of a “business plan” (your trading system)
- Home Run Options Trading Philosophy– a blatant brazen mentality paired up with a options trading system that can potentially allow for an aggressive pursuit. Similar to Hunter Speculator but more aggressive and less cautious.
- New: The “FREE Money” (“Low Hanging Fruit”) Trading Philosophy for trading and systems development: – Sometimes it’s easy to get too fancy as traders. Sometimes traders get too extreme, maybe “too greedy” wanting to totally dominate, capture every bit of profit, trade only the “best” of the “best” of the “best” moves, when there are trading set ups that are right in front of our faces, high probabilities ones willing to give us money, as if for free, since the opportunity is so ripe and the fruit is low hanging. So what if we purposely focused on these opportunities and went after them? Why strain ourselves and create so much work and stress for ourselves. We’re trading because we want to have more fun and less stress not the opposite. Let the robots or hired traders trade the stressful systems. Why not just take the laid back low hanging fruit with our awesome “FREE Money” based trading strategies.
- New: MOD “Money On Demand” Systems Development Philosophy from the mindset or desire of traders to have a system or a strategy they can use to walk into the markets just about any time and have a money setup waiting for them. The desired end result was: “I need money” “I want to go into the markets and have it be my ATM machine as much as possible”. So with this type of thinking we adjust creatively how we develop systems and strategies. We’ve made some really neat stuff with this mindset!
Most of our systems are designed under the “Trading for a Good Living Philosophy”. We will evolve into more diversification going forward. This would include systems such as SlingShot3.0, FLUX2, Options Weekly Paychecks System B etc…
In regards to the styles below we keep discovering new systems and strategies for options and will likely not remember to update this section so if you see a trading approach you like just contact us to match up the system. We have many systems and strategies that are not even listed on this site so please do ask. Because you never know.. Just 1 system could be all you need!
Hunter Speculator Philosophy Style involves timing, optimizing, combining factors for a most probably event, honing in on the ‘kill’.
- Chart Pattern Riches – The Ultimate Trading System.
- STRANGULATOR – Altered Strangle system with 4 power strategies
Although designed with “Trading for a Good Living” intentions, can be used in the Hunter Speculator style. Then of course we have PREDATOR – the options home run signal service made specifically for the Hunter Speculator Philosophy Style.
The Stupid Simple Trading Philosophy implies forcing a simplistic mindset when interpreting actions to take for netting out potential profits from repeated and simple price action.
JackPOT Philosophy is a significant way of thinking that helps you become a good systems trader, actually. Most traders struggle giving up ‘control’ to a system. With this philosophy employed in combination with a good trading, system your potential to make a fortune is enormous.
- JackPOT Options System D – Power trend trading system using the JackPot Trading Philosophy
- JackPOT Options Cyclone – Monthly trend system.
Trading for a Good Living Philosophy unless pointed out otherwise, most of the systems on Options Trading Authority are based on this philosophy. That said going forward we look to release more systems based on the other philosophies. In addition we look to release more options trading strategies, for honing in in and timing a one time significant events.