The strategy that I recommend is one that has been adopted by swing traders across the globe – the so-called “stolen asset” strategy. This strategy is usually implemented using options exchanges, as well as trading platforms, such as OTCQX or ICE.
The premise of the strategy is that you will find yourself at a losing position. This means that you are unable to find a good profit opportunity. The strategy works by exploiting this flaw in all markets – when there is a mismatch within the bid/ask spread. The aim is to acquire a long position at a price lower than the one the trader is selling at, thereby taking advantage of the price discrepancy. On the other hand, the opposite can occur when the trader is selling at a price higher than the one they are buying at, thereby taking advantage of the price discrepancy.
When you have a long position, you need buy, sell or close, and when you have a short position, you need sell or close. However, when there has been a price discrepancy then the price gap will be closed by either buying or selling at the trading platform. Thus, you end up with two different positions, one being taken off the exchange, and the other is taken off the platform when you leave. You can then buy or sell on the exchange when you do wish to sell or close this position.
For example, let’s say you are at an open bid/ask spread and have a position of Rs. 1,000 at Rs. 300 on XIX in Mumbai. The same trader may do the same thing in London or New York or Abu Dhabi.
The strategy for taking advantage of a short position is much stricter. You have to get your position on the platform closed before you leave the platform. So if the trader does not exit his/her position before your position is closed, then you can easily take your position in another trading platform or an option exchange. Then, in the process of taking your position, you will simply take your loss and trade it on a loss-free trading platform (LFTPS).
How effective is this strategy?
Stolen Asset Strategy Successful traders have managed to achieve impressive returns in a large percentage of all swings. These traders not only managed to beat the open margin calls and short selling – but they got a very good return too – ranging from 17% to 44% in the best long positions – which is quite impressive! In comparison, a similar trade on an open loss-free