Befriend the Trend Trading Message Board

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Strategies & Market Trends : Befriend the Trend Trading

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From: stoplosssteve	12/13/2004 3:46:56 PM
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WilyWilly, on the subject of the NQ's and NDX, here is an interesting experiment that I did today: My Entry for the NQ's today, was when the NDX hit my 50 period moving average support on 5 minute bars. This turned out to be 1609 on the NDX at 11:25am and 1611 on the NQ's. I am still not set up to buy futures, so I bought At the Money January 40 strike QQQQ call contracts at $1.05 each. My exit Target was the earlier high of the day at 1620 on the NDX, which hit at 2:59pm (This was 1621 on the NQ's), so I sold the QQQQ's. Here's the interesting part: I called an 11 point move on the NDX correctly (10 point move on the NQ's) and the NQ's would have rewarded me a minimum of 10 points times .20 = $200, minus -.50 bid/ask spread = conservatively $150 per contract. The stinkin QQQQ's rewarded me with +.10 per contract, or $10 per contract. Now I see why you guys trade the NQ's! Steve B

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