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Hi Gary,
this was one of the "creative" suggestions of Joe Ross. He advocated holding
two commodity accounts for the express purpose of being able to be
simultaneously long and short the same commodity; the idea being that it is
supposedly easier to enter the market by closing a position than by having
to pull the psychological trigger of opening one.
I remember he complained that the majority of market participants were not
sophisticated enough to understand these subtle strategic considerations.
:-)
Best regards,
Michael Suesserott
> -----Ursprungliche Nachricht-----
> Von: Gary Fritz [mailto:fritz@xxxxxxxx]
> Gesendet: Wednesday, October 17, 2001 20:24
> An: ianwaugh@xxxxxxxxxxxxxxxxxxx
> Cc: omega-list@xxxxxxxxxx
> Betreff: Re: Buying without selling
>
>
> > Ah! A most intriguing idea which I have implemented and which
> > works better than my original code (although not as well as
> > running the two systems concurrently).
>
> ?? As mike@xxxxxxxxxxxxxxxxx pointed out, an actual broker/FCM would
> interpret a Buy followed by a Sell as a closed-out position, even if
> you intended it to be a long in one system and a short in another.
>
> Profit-wise and in just about any other way I can think of, going
> flat in a commodity is functionally identical to being simultaneously
> long AND short in that commodity.
>
> So how could your system work better by running two systems
> concurrently (holding simultaneous long & short positions) than by
> netting out the positions?
>
> I suspect you have an error or a misunderstanding somewhere...
> Gary
>
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