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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (5250)	1/27/1999 7:13:00 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 11051

>>Unreal!<< what do you mean unreal?!... That it did not (does not, will not) work? Mademadigz rules OG (godda gold) d;\j

To: Gersh Avery who wrote (5250)	1/27/1999 8:19:00 AM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 11051

Gersh; RE:" inside out " >double contracts as strike moves against you and half the number of contracts as it moves in your favor .. You know I am fond of spreading out LIMIT orders to accumulate and distribute, given low commissions. A couple days ago Berney and I were working with various tactics for exploiting apparent trading ranges. If he doesn't mind me sharing part of that conversation with you, I'll lay one out. Consider BEL - Bell Atlantic. The stock is in a ragged, 11-day stoch cycle that appears to be an orbit about the perceived pivot of ~55 +/- 2 = sigma. One (long, scalping) trading tactic under discussion looks like this; read this table as if BEL stock was at ~55 pivot now, and falling : 59 SELL 1x = 100% position @ ~57 AVG, if it rose this far 58 SELL 2x 57 SELL 3x 56 SELL 4x 55 HOLD @ pivot 54 BUY 1x 53 BUY 2x 52 BUY 3x 51 BUY 4x = 100% position @ ~52 AVG, if it fell this far 50 = 200d EMA ...a short, scalping tactic would invert this pyramid such that the AVG short position was ~58 and the AVG cover price ~53. This is a little more aggressive than "doubling". (Of course, it's not a spread, like yours, with simultaneous longs+shorts, either). Following this scheme during the last two sessions, one would have bought BEL 1x @ 54 on Monday, then sold out @ 56 on Tuesday, and would now be flat (+3.7% gain, unleveraged). Another, "progressive" scheme might be built upon a fibonacci sequence; eg., 0x / 1x / 1x / 2x / 3x / 5x / 8x..., N; where N = (N-1) + (N-2) IMHO tactics like this work best when the underlying is, at least temporarily "stationary" or, without Trend. Further, I think it would be better to work with BigBoy turtles, in apparent trading ranges, rather than most go-mo TechStox. P&F charts, with say, 1/2-point box sizes, 1-point reversal, are very useful for working with these apparent trading ranges, Gersh, as there is no trend, and so no mo or time series to chart - and I am exploring that now, fwiw. -Steve