What % of my portfolio could I allocate to 90% probability credit spreads & iron condors?
Once you gain sufficient experience and knowledge in trading index credit spreads and iron condors, you could allocate up to 75% of your entire portfolio into this strategy, keeping 25% as reserve cash. In order to get to this point, one would usually need to build up about 1 to 2 years of experience and have spent sufficient time studying the materials and case studies in our Learning Center to have a thorough understanding of the risk/reward/probability nature of credit spreads. For us personally, we generally trade 65% of our own portfolio with non-directional credit spreads and iron condors that we recommend through our service, we keep 20% of our portfolio as cash reserves, and we trade 15% of our money in directional plays, where some of these are included in our service as bonus trades. For more on why we keep 20% of our portfolio in reserve cash, please visit the Learning Center and read the entry “what if the market surges unexpectedly, how do we protect ourselves?”. The reaso
