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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jon K. who wrote (3052)	12/29/1998 2:44:00 PM
From: theRedDog	Respond to of 99985

>>>>>>>> Did you like the New Market Wizard as much as the first one? <<<<<<< I liked the "New" one significantly more than the first one. (In case you wondered, this is the reason I bought the second one first --> it was mispriced at $10 --I cannot resist a bargain) >>>>>>> I heard the wizards of the second book wasn't as high caliber as the first book. <<<<<< Maybe. (I knew VERY few of them before reading the books) But they seemed to talk more openly. Also the questions are far better in the "New" book. (The author is learning his trade) And the answers are usually only as good as the questions... (I remember reading a book about Warren Buffet. The only things I learned were: 1) Warren seems to be a nice guy. 2) He made lots of money.) >>>>>>> Why don't you share your 3 programs with us. Some of the wizards in this thread could give you helpful comments on your programs. I'd like to learn, too. <<<<<<< No problem, but I have to be convinced that they have a chance at "working" first. The first one I did was to generate my own list of high premium/high implied volatility calls in order to write covered calls. (Something similar to the list provided by www.coveredcalls.com which have several limitations) I was doing great selling covcalls, but reading The New Market Wizards with all its stress in risk control and limiting losses I was persuaded to change tack. (Having sold calls on ONSL when it was 66 and seeing come down to 40 also "helped" a lot) :> Selling covered calls didn't quite fit my temperament, and limiting risk is VERY difficult. One thing I noticed while selling calls was that many times an increase in activity/implied volatility in an option would be followed shortly by (very good) news. The program I'm finishing now is for detecting big daily increases in calls volume/implied volatility (premium) The theory is that people who are in the know of news coming (illegal I know, but that's THEIR problem) buy calls without worrying too much about raising the premium. (because they are going to make a killing anyway) These programs are called wolf detectors in the book. Right now I'm collecting data, (I cannot find any source of free historical options closing prices) and I'll be ready to generate my first "pickings" in a couple of weeks. I'll be more than happy to share the results with the thread. If it works it will be a way to return something of the good things I learned here. Take Care theRedDog