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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Nancy who wrote (55263)	4/23/2002 6:19:22 PM
From: Steve Lee	Read Replies (4) \| Respond to of 99280

If it can be used as an investment technique then it can be proven scientifically. We start with a hypothesis, for instance that "Max pain will be touched in the next two weeks if two weeks before expiry we are only 2 strikes away". We then buy or short based on that hypothesis and see if we make or lose money over time. If you are right and we can't come up with a hypothesis that we can prove, then we will not be able to make money out of it and it can be disregarded. I have been collecting such rules for several months and backtesting them. Some rules work, some don't.