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Re: Margin Leverage in Futures



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Hi Rick,

It sounds to me like they simply want the tester to be sure as to the
$/point value of the specific contract being analyzed if dollars are being
used as the measurement metric.  There natually is the possibility of
entering the incorrect $/point value versus simply running a "points only"
test.  Both tests (dollars or points) should be accurate as long as you use
the correct $/point when "dollar testing."

Regards,

HiTech Analytics, LLC
Brian K. Lee
President
www.hietch-analytics.com


----- Original Message -----
From: "Rick Parsons" <RickParsons@xxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Monday, December 24, 2001 3:37 PM
Subject: Margin Leverage in Futures


> I saw this comment posted:
>
> "4) I understand from the manual and onscreen
> help that users who trade futures contracts
> are encouraged to do points only tests
> because of the challenge of accounting for
> margin leverage in the futures contracts."
>
> Could someone explain what the problem is and specifically how this
affects
> system tests?
> If I use margin in the system tests, are the tests overstated or
> understated?
>
> Thanks,
> Rick
>
>