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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: ExCane who wrote (3181)	2/24/1998 10:15:00 PM
From: TFF	Read Replies (2) \| Respond to of 12617

Alex: I was thinking that I may limit the maximum time for a trade to work( say 20 minutes) out instead of a price. This is not to say that if the trade does work out I will not hold longer, but if it flounders this technique may have some interesting results.l will get back to you on how my testing goes.

To: ExCane who wrote (3181)	2/25/1998 8:42:00 PM
From: Robert Graham	Respond to of 12617

I have found time stops to be useful when trading options. At the time I starting doing this I did not know this is what they were called. I was just doing what looked sensible to me. I later read about this same approach in the "Option Advisor" book. The problem I had was even though I looked at a daily chart, this was not enough to time my entry. I had to start looking at the tape. If I did not do this, in most cases the underlying stock would move up a day or two after I closed my option position. This became very frustrating. But I did not resort to making my time stops any larger. Instead I learned how to better time my entries. If it were not for those time stops, I would not have been able to be profitable on my initial system that worked only about 35% of the time. Most of my exits only incurred a loss of the commissions. The tape makes the difference. Bob Graham