Description of Advanced Iron Condors, Trading Concepts
To show you step-by-step how to apply a comprehensive and dynamic risk management plan that allows you to neutralize risk on the fly.
What I can tell you now is that defending your trades requires a layered approach.
What will you learn in Advanced Iron Condors, Trading Concepts?
- The first is general risk management. In this layer, you define how much you can risk on one trade.
- The next layer is static risk management. You basically ask yourself, “What is the stop value at which I can remove one of my credit spreads and roll it out further in distance?”
- You then top this foundation by determining how much dynamic risk you can tolerate. You also find out if you can add any hedge positions to neutralize your risk.
- Next up is a dynamic risk management layer. You see, certain positions placed ahead of time can not only dynamically grow in value, but also help defend against a deep attack on your credit spread positions.
- I call these your “sleep-at-night” positions.
- You then conclude with active risk management. This final step involves evaluating the potential reward of staying in a position longer versus the potential risk of additional market movement, as well as when it’s time to close your position for maximum profits
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