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To: Kevin who wrote (30677)	12/9/1997 8:50:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

The person referred to on that site, Hans Stoll, if you are interested has books available from Amazon. I, personally, have never read any....but if you want more depth there may be something of interest there. As for the rest of what I said, as I mentioned to Nemer this was a response from a CBOE member/lecturer and I defer to him on such issues. For my own part, a nephew of mine runs a bond desk in London and Chicago. While on the floor one day with him in London he showed me computer-generated prices where he should be making offsetting trades and at what prices. For example, optimal plays for butterfly spreads based on current sigmas. These plays are the 'foundation' for their steady profits with routine trades around where the market was done as the real 'speculation'. These sheets are provided to pit traders regularly by runners throughout the day. Obviously they have edges even we cannot guess at. While visiting the CBOE floor one day last year I saw a monitor that had different size colored boxes on it. Want to talk about trading based on something you don't understand? Each trader knows at the beginning of the day which colored square or rectangle is his/hers for the day. Of course, all these traders trade for the same outfit. Few people know the whole system....the way I'm told it goes something like this. As the markets change throughout the day the boxes gradually change colors. If, for example, you have the box in the lower right hand side and it turns blue it might be a signal to you to sell 100 OEX Dec 470 calls at market. (just an example, I don't know what the signal is). There is a programmer that might be responsible for perhaps 2 or 3 of the boxes, another for another 2 or 3, and so on. The only one who knows all the box programming is the top programmer. Only a few know what triggers an event that triggers the square to turn blue. None of the traders are to tell each other which box they have or what color tells them to do what. Howzat for unemotional, machine driven trading? I mentioned it because I thought you might like the concept.