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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: GROUND ZERO™ who wrote (36159)10/12/1999 12:17:00 PM
From: John Pitera  Read Replies (2) of 44573
 
~~just short both puts and calls and pray the market stays in a
trading range.. ~~

yes but those days like oct 19th 1987 can blow you up with that type of strategy.... in fact Victor Neiderhoffer, the barefoot trading guru who wrote that book on trading wiped out his accounts on OCt 27th of 1997 doing something along those lines.

A variation of that would be to be long the DM and short the CHF (Swiss Franc) as those two do not have the cross rate between the two move very rapidly and the write an at the money call on the DM long (DMz9) and write an at the money put on the CHF short.(SFZ9)

as I say those currencies move in near tandem.

I was just doing a comparison chart of the two currencies and they has been very little movement in the spread for the past 4 months.

why do you think more retail people are not doing these types of strategies??

John
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