Re: Naz 100 futures buy and hold system

["Michael Robb" <mlrobb@xxxxxxxxxxx>]

Suggest you try it on intraday data first, using much smaller 
increments.
 
Since it probably works great until the last loss wipes you 
out, try to get a gov't backer. They have been doing this with  paper money 
for years with hardly any complaints.
 
 
<BLOCKQUOTE dir=ltr 
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  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  David 
  DeFina 
  To: <A title=metastock@xxxxxxxxxxxxx 
  href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx 
  Sent: Friday, July 13, 2001 10:53 
AM
  Subject: RE: Naz 100 futures buy and hold 
  system
  
  
  <FONT face=Arial color=navy 
  size=2>I&#8217;ve 
  used a similar methodology in Blackjack, except doubling my bet each time I 
  lose.  It works great some of the 
  time, but long losing streaks are painful.<FONT face=Arial 
  color=black size=2><SPAN 
  style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-color-alt: windowtext">
  <DIV 
  style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 3pt; PADDING-BOTTOM: 0in; BORDER-LEFT: blue 1.5pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: medium none">
  <P class=MsoNormal 
  style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; MARGIN-BOTTOM: 12pt; PADDING-BOTTOM: 0in; MARGIN-LEFT: 39pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-margin-top-alt: auto; mso-border-left-alt: solid blue 1.5pt; mso-padding-alt: 0in 0in 0in 3.0pt"><FONT 
  face=Arial color=black size=2><SPAN 
  style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial">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: 10pt; COLOR: black; FONT-FAMILY: Arial; mso-color-alt: windowtext">
  <FONT face=Arial color=black 
  size=2><SPAN 
  style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: 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; mso-color-alt: windowtext">