2013 Treasury Bonds Donchian Channel

Options Trend Following With Donchian Channels – Theta Breakout Video

Overview: This short video goes over the mechanics of trading the Theta Breakout system.  Essentially the system sells out of the money naked options or credit spreads following a Donchian Channel breakout.  The Theta Breakout system uses a 50 day breakout with a 3.5 x average true range trailing stop to manage risk. In this […]

Options Backtest Results

Backtest Results From Short Options Trend Following and New Questions

Overview: Finally.  The manual backtest of the Theta Breakout system produced some pretty interesting results and the general take away is that the system “works.” That being said, this is by no means a recommendation to take a trade and the results are being presented for educational purposes.  I will also note that the system […]