RE: Naz 100 futures buy and hold system

["David DeFina" <ddefina@xxxxxxxxxxxx>]

<span
style='font-size:10.0pt;font-family:Arial;color:navy'>I&#8217;ve used a similar
methodology in Blackjack, except doubling my bet each time I lose.<span
style="mso-spacerun: yes">  It works great some of the time, but
long losing streaks are painful.<font size=2 color=black
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:black;
mso-color-alt:windowtext'>



<p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt;
margin-left:39.0pt;border:none;mso-border-left-alt:solid blue 1.5pt;padding:
0in;mso-padding-alt:0in 0in 0in 3.0pt'><span
style='font-size:10.0pt;font-family:Arial;color:black'>I wonder if anyone has
any thoughts on the following system. 
Assuming one has the necessary capitalization and patience, would it work? 

Rules 

1. Go long only. 
2. Buy the front month Naz emini at 1800, 1700, 1600, 1500, 1400, etc. all 
the way down or all the way 
up! 
3. Sell each contract only when it reaches a 100 point profit. 
4. Rollover if necessary. <span
style='font-size:10.0pt;font-family:Arial;color:black;mso-color-alt:windowtext'>



<font size=2 color=black
face=Arial>

This is a strategy widely known as "scale trading". 

It takes a lot of capital to make it work.  You also need to use
"last in - 
first out" accounting. 

The hidden danger is a prolonged down market where you wind up holding a huge 
position of big losers and run out of capital.  It also violates the
common 
axiom of "cut your losses and let your profits run".  This
strategy holds 
losers forever and always takes small profits.   

It might work in particular circumstances but be careful about using this 
strategy on a regular basis. 

Chuck LeBeau<span style='color:black;
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