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Author: CM001 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 41315  
Subject: Re: Gold - Updated TA Date: 11/11/2012 10:02 PM
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The math of credit spreads doesn't work well for overall positive expectancy if you take the full loss on too many. You could have 12 out of 15 winners, and if you take the full loss on 2 that might wipe out all your profits.
For me, the 200DMA is the line, if that is breached, I will close the position and take the loss. The main reason for the credit spread is reducing the amount of capital locked up.
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