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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Stoxx who wrote (4986)	9/30/1999 3:53:00 PM
From: Dr. Stoxx	Respond to of 39683

Someone just bought about 300k shares of HYSL. Up $1 5/8! TC.

To: Dr. Stoxx who wrote (4986)	9/30/1999 6:58:00 PM
From: Charles Kalb	Read Replies (2) \| Respond to of 39683

Thomas.......Got something for you on OMKT. When I first glanced at OMKT's chart my first impression was "this is a long-range trading-range stock". Indeed, a standard error channel drawn back to December 2, 1998, is perfectly flat. Such price behavior is amenable to a simple trading system which basically buys near the bottom of the channel and sells near the top. Using MetaStock I ran a simple system test on OMKT back to 12/2/98 and optimized the buy/sell levels: Enter Long / Close Short when daily HIGH crosses above optimized BUY Level Close Long / Enter Short when daily LOW crosses below optimized SELL Level BUY & SELL Levels were both optimized from $11 to $17 in increments of $0.50. This system is always in a trade. Trade is executed at the next day's OPEN. Net proceeds from a trade are 100% invested in the next trade. In/Out commissions of $15 accounted for. Starting with $3,000 OMKT gave a net return of 224 % over 10 months to date; i.e. the initial stake of $3000 became $9709. There were only six trades completed (three long and three short) and there is a long trade in play initiated 8/23. The equity curve was beautiful with no significant drawdowns. There was no increase in gain when trades were made same day at CLOSE or when optimization increments were decreased to $0.25. The optimized BUY Level is $12.50 and the SELL Level is $15, the latter of which is right in line with your target. Charles