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To: Tomato who wrote (17229)	12/9/2000 12:27:25 AM
From: darvasdarvas	Respond to of 62550

Tomato This post is about Nicolas Darvas and his original method. In mid July of 1994, after reading his first book, I decided that it was too long term for me. So I collapsed his method, after first doing a study on how long the public went absolutely crazy over a stock. I also reduced the stop loss to 5%. I launched my execution of this system in mid august of 1994, using 10% of my savings. I proceeded to enter buy stops for 50% of my stake on margin (this lowers steadily to a threshold if one is successful). Notice I will have at most 4 buy stops at any one time ( the lack of diversity is the key to performance).My initial potential maximum loss on each trade is 2 1/2% of my stake (exclusive of slippage, spreads, and commission). I always enter my protective sell stop 5% below my actual buy price. However this does not protect me from the slippage, spreads, and commissions from the sell execution. As of today, I have 942 trades, with 492 wins and 450 losses. I now have 79 times what I started with. This includes all the loss from slippage, spreads, and commission. This also includes money market interest while not invested, since I am out of the market 95% of the time. One of the great things about the Darvas method is that it keeps you out of the market when you should be,and this has occurred for months at a time. I have sent you this E-mail, as you are the originator of the Darvas thread, and I wanted to post a successful long term example of his methods in action today. He was truly the first "momentum" investor. DARVASDARVAS