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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (6489)	1/19/1998 2:11:00 AM
From: Douglas Webb	Respond to of 14162

Some stocks seem to go through periods of time where the up/down spread during the day is wide... We know that MMs, daytraders, and momemtum traders are jerking the prices for sure... The hard question is how do you know when that is taking place without being glued to the computer screen all day long? I wonder if that could be incorporated into your chart? Without historical intraday prices, I couldn't test any trading methods which operate intraday like that, and I certainly can't chart them. Like I said in my last post, I'm working on some trading rules which will allow stepping into a trade on a new bar before the bar actually forms; so far the set of rules I plan to test next will involve trading only at the open and just before the close. I was working on a more complex set, but I realized that unless I know how the price moves up and down during the day I can't be certain how a given rule will perform. So, I'm restricted to rules which I can apply at the opening and the close (I'm forced to assume that the closing price is fairly close to the price at 3:50 pm EST, which is about as late as an order can be reliably placed for execution before the close.) Doug.