We Believe In Three Pillars to Trading Success:
Small Mechanical Positions. Combat Trading Emotions. Trade the Math.
Our Trading Philosophy
We strive to make options trading tools for any trading style. Still, our trading philosophy inspired development of the Brutus Options Ranker and we believe it underpins most successful options traders.
Our Three Pillars of Successful Options Trading
These three pillars are foundational in the technology development of the Brutus Options Ranker.
Small, Mechanical Positions
Prevents blowing up your account and unlocks the edge of a good long-term strategy.
Minimize Emotions
Emotions cloud judgement, lead to mistakes in entry, management, and exit, and destroy a good strategy.
Trade the Math
Options are much more quantitative than other trading instruments. Let the math work in your favor.
Small Positions
Small Positions
The best Options Training educators recommend allocating no more than 1-3% of your account in a single trade.
Trading small will afford you the opportunity to let the strategy reach it's mathematical expected performance without blowing up your account.
Mechanical Positions
Mechanical
Small positions will help you unlock the law of large numbers and reach the expected performance of a good options strategy.
However, this only works if each trade is managed in the same way. Same criteria for entry, same decision making, same management, and same exit.
Minimize Emotions
Calm, Cool, and Collected
Nothing puts your trading more at risk than falling into the typical cycle of trading emotions. We believe that a mechanical, consistent approach not only removes the risk of emotional influence, but allows traders to take advantage of other trader's emotions in the marketplace.
This was one of the key reasons we made the Brutus Options Ranker - having confidence to make decisions effectively and without emotional bias is an enormous trading advantage.
Trade the Math
Math Works
Options trading is often compared to gambling. Certainly many traders do behave like gamblers by excessively relying on their "gut" or hitting a "streak".
But just like a casino, the options market is a two-sided market place. In the same way that house use the math to turn gambling into a business, so must the successful options trader.
Trade the Math
IV+140 More
One of the best known and most effective quantitative evaluation of any options trade is to look the Implied Volatility (IV) and its position over a range.
We take it a leap forward with over 140 criteria (and more added all the time).
