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> From: John Manasco <manasco@xxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re:System development
> Date: Saturday, August 22, 1998 1:56 PM
>
John Manasco wrote:
> I've never traded commodities, never even new what they were until about
> five years ago. Someday I'll venture into that arena but for now I'll
> stick to equities and options.
++++John, you will find that after applying your work to futures, you will
trade stocks much better.
IMHO, futures are easier, and the anticipated results are seen faster.
When you trade a future, you are trading something that has a value that
can be readily defined (buy 125000 German DMarks at X US Dollars. When you
buy a stock, you do not really own an asset that has a given value.
Example, you may buy 100 shares of Xon for $70.00 per share, and that
entitles you to have a certificate with a par value of perhaps .10. If
some analyst decides to downgrade Xon, your shares purchased will lose
value, not because Xon is less of a company, but some analyst expresses his
beliefs based on "whatever". Also futures respond to TA more positively,
again, because you have a defined value. If you owned 1000 shares of GM,
what part do you really own? GM does not benefit from your buying of 1000
shares, some trader/specialist will reap the profit/loss (Unless it is a
new offering)
I write this to you because of the quality of your posts, and I was exactly
where you are on futures until about 5 years ago. A good learning site is
http://www.cme.com.
++++++++++
>
> Do you find some systems work better on futures that equities? I'm
> comming to believe that there is no one system that will work on
> everything but I need to tailor my systems for different industry
> groups and different individual equities.
+++++++++++
IMHO, you are exactly correct.
++++++++++++
This is hard to accomplish
> without curve fitting but I'm finding that stocks do have their
> individual personalities and respond better to some indicators than
> others.
+++++++++++=
Al Taglavore
>
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