Big Mouth Iron Condor (BMIC) System^TM

A lot of traders around the world were comparing my BMIC System^TM with Dan Sheridan's High Probability Condors. First, let me clarify that BMIC System is a system created by me and it is not based on Dan's system alone. In fact, BMIC System is generated by mixing and playing with at least three iron condor systems that are available currently in the internet and of course, the system works because I have done sufficient backtesting before I put this system on live trading.

Now, some of you may find that my Beta 1 Guidelines are too much to handle. Remember that this system is a rule-based system and therefore I have a lot of rules to capture different scenarios. For example, the hard close rule is to deal with the overnight RLS settlement. Buy back cheap rule is to make sure that a trader can remove his obligation as early as possible. So, they are all there for reasons. You cannot get these rules in a complete sense by reading other iron condor systems because most of them tell you vaguely how to get in but none of them is really able to address the "How to get out", or at best, you may consider this or that ... blah blah blah.

Why do I not talk about volatility? In the first place, iron condor consists of two vertical spreads. Therefore, the volatility is hedged in that you buy high IV option and sell high IV option at the same time. Or you buy low IV option and sell low IV option. Indeed, RVX can help to determine how big the mouth is. It helps in certain sense but that's all you can use. So, not mentioning volatility is not fatal because it does not matter at all, unlike time spread or diagonals.

If RVX is at all time low, chances of getting burnt WOULD NOT GO UP because you are going to use some rules to get out of the position. For example in Beta 1, I talked about what if you lose 1.5 times of your original credit received, you should consider getting out. So, those who said they may be burnt did not consider faithfully all the potential exit rules, and I am daring to say that - they did not.

All in all, no matter which iron condor system you are trading, make sure that you have done sufficient backtesting and forward testing before putting money at risk. Taking someone's system without testing it can be fatal and when you get burnt, don't blame the system developer but yourself - why? It's because you haven't done enough practice to drive F1. How can you drive like Lewis Hamilton when you just get your license?

Go figure.