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Re: implied volatiliy and excel



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<DIV><FONT face=Arial size=3>try downloading these zipped Excel macros from 
WinsiteCom<BR><BR>futcal32.zip 35K&nbsp; 05/17/97 Evaluates futures fair values, 
deltas, thetas, rhos<BR>futcalc.zip&nbsp;&nbsp; 28K&nbsp; 05/15/97 Evaluates 
Futures fair values,deltas,thetas and more<BR><BR>For more programs</FONT></DIV>
<DIV><FONT face=Arial size=3>WinsiteCom - Links to download programs<BR><A 
href="http://www.winsite.com/info/pc/win95/excel/";>http://www.winsite.com/info/pc/win95/excel/</A><BR>(add 
the programs (zip) file name to have the complete link)<BR></FONT></DIV>
<DIV><FONT face=Arial size=3></FONT>&nbsp;</DIV>
<DIV><FONT face=Arial size=3>For the&nbsp;programs index<BR>WinsiteCom - Excel 
Files program pages (1 to 3) <BR><A 
href="http://www.winsite.com/win95/excel/index.html";>http://www.winsite.com/win95/excel/index.html</A><BR>replace 
index.html by page2.html or page3.html (index.html = page1)<BR><BR>or also try 
the MetaStock Help<BR>search on delta, volatility, options..................etc. 
<BR><BR>Regards,<BR>Ton Maas<BR><A 
href="mailto:ms-irb@xxxxxx";>ms-irb@xxxxxx</A><BR><BR>=================================<BR></FONT><FONT 
size=2><FONT face=Arial>WinSite Windows 95 Archive</FONT></DIV>
<DIV>
<H3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; <FONT face=Arial>Microsoft Excel 
Files</FONT></H3>
<BLOCKQUOTE style="MARGIN-RIGHT: 0px">
  <H3><FONT face=Arial 
  size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Last 
  Updated: Saturday, Mar. 6, 1999 &nbsp; &nbsp; 02:38 EST</FONT></H3></BLOCKQUOTE>
<H4></H4></FONT>
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    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>10/07/98</FONT></P></TD>
    <TD height=16 width="59%"><FONT color=#000000 face=Arial size=2>
      <P align=left>Financial Analysis of Life for Microsoft 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>formidea.exe</FONT></P></TD>
    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
      <P align=right>3.05MB</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>09/26/98</FONT></P></TD>
    <TD height=16 width="59%"><FONT color=#000000 face=Arial size=2>
      <P align=left>Intelligent Forms Processing Add-in for MS Excel 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>futcal32.zip</FONT></P></TD>
    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
      <P align=right>35K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>05/17/97</FONT></P></TD>
    <TD height=16 width="59%"><FONT color=#000000 face=Arial size=2>
      <P align=left>Evaluates futures fair values, deltas, thetas, 
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      <P align=left>futcalc.zip</FONT></P></TD>
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      <P align=right>28K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>05/15/97</FONT></P></TD>
    <TD height=16 width="59%"><FONT color=#000000 face=Arial size=2>
      <P align=left>Evaluates Futures fair values,deltas,thetas and 
      more</FONT></P></TD></TR>
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      <P align=right>18K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>01/12/98</FONT></P></TD>
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      <P align=left>Keeps track of Golf Scores and calculates Skins 
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      <P align=left>gpa_trak.zip</FONT></P></TD>
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      <P align=right>15K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>01/24/97</FONT></P></TD>
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      <P align=left>Excel spreadsheet to keep track of your GPA and 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>grabit.exe</FONT></P></TD>
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      <P align=right>97K</FONT></P></TD>
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      <P align=center>11/22/98</FONT></P></TD>
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      <P align=left>Digitizes and measures data on graphs and 
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      <P align=right>1.19MB</FONT></P></TD>
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      <P align=center>10/04/98</FONT></P></TD>
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      <P align=left>Excel 97 electronic teacher gradebook 
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      <P align=left>home.zip</FONT></P></TD>
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      <P align=right>48K</FONT></P></TD>
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      <P align=center>09/16/98</FONT></P></TD>
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      <P align=left>Import any text report file into MS-Excel 
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      <P align=left>inerst13.zip</FONT></P></TD>
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      <P align=left>jem.zip</FONT></P></TD>
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      <P align=right>3.74MB</FONT></P></TD>
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      <P align=center>01/09/99</FONT></P></TD>
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      <P align=left>JEM Excel 97-Functions &amp; utilities(ie Y2K Cell 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>manit98.zip</FONT></P></TD>
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      <P align=center>02/04/99</FONT></P></TD>
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      <P align=left>Manitoba 98 Tax software.</FONT></P></TD></TR>
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>mataddin.exe</FONT></P></TD>
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      <P align=right>14K</FONT></P></TD>
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      <P align=center>10/21/96</FONT></P></TD>
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      <P align=left>Excel Add - In for inverting a 3W3 Matrix</FONT></P></TD></TR>
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      <P align=left>matting.exe</FONT></P></TD>
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      <P align=right>83K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>06/29/98</FONT></P></TD>
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      <P align=left>Calculates dimensions for matting and framing 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>megascor.zip</FONT></P></TD>
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      <P align=center>08/28/98</FONT></P></TD>
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      <P align=left>Football-pool for Excel97</FONT></P></TD></TR>
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>mort207.zip</FONT></P></TD>
    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
      <P align=right>260K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>01/09/98</FONT></P></TD>
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      <P align=left>Mortgage program for Canadian and US 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>mortgage.zip</FONT></P></TD>
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      <P align=center>09/15/98</FONT></P></TD>
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      <P align=left>Calculate monthly payment closing cost etc.</FONT></P></TD></TR>
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      <P align=center>02/07/96</FONT></P></TD>
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      <P align=left>My Portfolio Manager, a Microsoft Excel 4.0 
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      <P align=center>06/03/97</FONT></P></TD>
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    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>04/30/98</FONT></P></TD>
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      <P align=left>Ontario 97 return if less than 65</FONT></P></TD></TR>
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>ont97sr.zip</FONT></P></TD>
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      <P align=right>198K</FONT></P></TD>
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      <P align=center>04/30/98</FONT></P></TD>
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      <P align=left>Ontario 97 return for those older than 65</FONT></P></TD></TR>
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>ont98jr.zip</FONT></P></TD>
    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
      <P align=right>39K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>02/04/99</FONT></P></TD>
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      <P align=left>Ontario jrs 98 Tax software.</FONT></P></TD></TR>
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>ont98sr.zip</FONT></P></TD>
    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
      <P align=right>39K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
      <P align=center>02/04/99</FONT></P></TD>
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      <P align=left>Ontario srs 98 Tax software.</FONT></P></TD></TR>
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      <P align=right>42K</FONT></P></TD>
    <TD height=16 width="11%"><FONT color=#000000 face=Arial size=2>
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      <P align=left>Evalautes option fair 
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      <P align=left>Calc. Option fair values, vola, deltas, gammas, 
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      <P align=left>Risk Analaysis and MontCarlo Simulation addin to 
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      <P align=right>80K</FONT></P></TD>
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      <P align=left>Oraxcel: use MS Excel as frontend to Oracle databases 
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
      <P align=left>pball.zip</FONT></P></TD>
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      <P align=left>Easily manage a large number of Powerball 
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      <P align=center>06/04/97</FONT></P></TD>
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    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
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    <TD height=16 width="21%"><FONT color=#0000ff face=Arial size=2>
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    <TD height=16 width="10%"><FONT color=#000000 face=Arial size=2>
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<DIV><FONT size=3><FONT face=Arial></FONT></FONT>&nbsp;</DIV>
<DIV><FONT size=3><FONT face=Arial>----- Original Message ----- <BR>From: 
Maurice Zandbelt &lt;<A 
href="mailto:maza95@xxxxxxxxx";>maza95@xxxxxxxxx</A>&gt;<BR>To: metastock list 
&lt;<A 
href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx</A>&gt;<BR>Sent: 
zaterdag 17 april 1999 0:21<BR>Subject: implied volatiliy and 
excel<BR><BR><BR>&gt; I hope somebody can help me.<BR>&gt; <BR>&gt; I use 
metastock 6.0, I use option scope to calculate the options implied<BR>&gt; 
volatility. I am also using excel with a DDE (dynamic data exchange).<BR>&gt; 
<BR>&gt; I want to make a excel worksheet which calculates during trading 
hours,<BR>&gt; the delta of the option which I sold short. Can somebody help me 
with<BR>&gt; the formula to calculate the implied volatility or delta when I 
already<BR>&gt; have the price of the option ?<BR>&gt; <BR>&gt; Best 
regards,<BR>&gt; <BR>&gt; Maurice Zandbelt</FONT></FONT></DIV></BODY></HTML>
</x-html>From ???@??? Sat Apr 17 10:38:48 1999
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From: "Bob Jagow" <bjagow@xxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Subject: RE: SAR - Starting AF
Date: Sat, 17 Apr 1999 09:55:04 -0700
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<DIV><FONT color=#0000ff face=Arial><SPAN class=00064216-17041999>Thanks, Ton -- 
the trader's talk version spells everything out.</SPAN></FONT></DIV>
<DIV><FONT color=#0000ff face=Arial><SPAN 
class=00064216-17041999>&nbsp;&nbsp;&nbsp; Fortunately don't have to worry 
about&nbsp;SIP in a MS chart or exploration as long as you load enough 
data.</SPAN></FONT></DIV>
<DIV><FONT color=#0000ff face=Arial><SPAN 
class=00064216-17041999>&nbsp;&nbsp;&nbsp;&nbsp;I did find&nbsp;handling 
SIP&nbsp; and 'The SAR is never advanced into the previous period's range or the 
current period's range'&nbsp; a bit tricky&nbsp;when writing a custom 
scan&nbsp;for QPlus.</SPAN></FONT></DIV>
<DIV><FONT color=#0000ff face=Arial><SPAN 
class=00064216-17041999></SPAN></FONT>&nbsp;</DIV>
<DIV><FONT color=#0000ff face=Arial><SPAN 
class=00064216-17041999>Bob</SPAN></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT color=#000000 face=Arial size=2><A 
href="mailto:bjagow@xxxxxxx";>bjagow@xxxxxxx</A></FONT></DIV>
<DIV>&nbsp;</DIV>
<BLOCKQUOTE style="MARGIN-RIGHT: 0px">
  <DIV class=OutlookMessageHeader><FONT face="Times New Roman" 
  size=2>-----Original Message-----<BR><B>From:</B> 
  owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]<B>On 
  Behalf Of</B> A.J. Maas<BR><B>Sent:</B> Saturday, April 17, 1999 7:49 
  AM<BR><B>To:</B> metastock@xxxxxxxxxxxxx<BR><B>Subject:</B> Re: SAR - Starting 
  AF<BR><BR></DIV></FONT>
  <DIV>Check out the Custom formula below.<BR><BR>Regards,<BR>Ton Maas<BR><A 
  href="mailto:ms-irb@xxxxxx";>ms-irb@xxxxxx</A><BR><BR>=======================================<BR><BR><STRONG>Parabolic 
  SAR - J. Welles Wilder&nbsp;&nbsp;&nbsp; </STRONG>(taken from MetaStock 
  v6.52-Help)<BR><BR>-Intro&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  -Parameters<BR>-Interpretation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  -Custom Formula (Function)<BR><BR>Intro<BR>The Parabolic Time/Price System, 
  developed by J. Welles Wilder, is explained<BR>thoroughly in his book, New 
  Concepts in Technical Trading Systems<BR>(see Suggested Reading).&nbsp; This 
  indicator is used to set price stops and is often<BR>called the 
  stop-and-reversal (SAR) indicator.<BR><BR>Interpretation<BR>If you are long 
  (i.e., the price is above the SAR), the SAR will move up every 
  day,<BR>regardless of the direction the price is moving.&nbsp; The amount the 
  SAR moves up<BR>depends on the amount that prices move.<BR>The Parabolic SAR 
  provides excellent stops(exit points).&nbsp; You should close 
  long<BR>positions when the price falls below the SAR and close short positions 
  when the<BR>price rises above the SAR.<BR>The Parabolic SAR is plotted as 
  shown in Wilder's book.<BR>Each SAR stop level point is displayed on the day 
  in which it is in effect.<BR>Note that the SAR value is today's, not 
  tomorrow's stop level.<BR><BR>Parameters<BR>The parameters for the Parabolic 
  SAR are shown below.&nbsp; These parameters are<BR>specified at the time the 
  indicator is plotted.&nbsp; You can edit the parameters of an<BR>existing plot 
  by right-clicking on the indicator and choosing Properties from 
  the<BR>shortcut 
  menu.<BR><BR>Step.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  As a trade makes new highs/lows, the Parabolic SAR will rise/fall 
  according<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  to the SAR step size.&nbsp; For example, if the trade makes new highs for 
  three<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  consecutive days, then the SAR step increases by 0.02 each 
  day<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  (i.e., 0.02 to 0.04 to 0.06, etc.).&nbsp; The author (Welles Wilder) 
  recommends 
  a<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  step size of 0.02 for most securities.<BR><BR>Maximum.&nbsp;&nbsp; Enter the 
  maximum value the SAR Step can obtain.&nbsp; The 
  author<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  recommends an SAR Maximum of 0.20 for most securities.<BR><BR>Custom Formula 
  (i.e. the 
  FUNCTION)<BR>NAME:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Parabolic 
  SAR<BR>SYNTAX:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  sar( STEP, MAXIMUM )<BR>DESCRIPTION: This FUNCTION calculates the predefined 
  Parabolic SAR indicator. 
  <BR>EXAMPLE:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; sar( 0.02, 0.20 
  )</DIV>
  <DIV>&nbsp;</DIV>
  <DIV>See Plotting an Indicator - for more information on plotting indicators 
  (p. 135).</DIV>
  <DIV>See&nbsp;Option Delta, Gamma, Price, Theta, Vega and Parabolic SAR - for 
  more information</DIV>
  <DIV>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  &nbsp;on&nbsp;the Parabolic SAR parameters (p. 469-472 + 162-163). </DIV>
  <DIV>&nbsp;</DIV>
  <DIV>=======================================<BR><BR><U><STRONG>Parabolic SAR 
  by J. Welles Wilder<BR><BR></STRONG></U>The full explanation of the Parabolic 
  "Stop and Reverse" is in J. Welles Wilder, Jr.'s</DIV>
  <DIV>book "New Concepts in Technical Trading Systems", 1978.&nbsp; This is 
  considered by many</DIV>
  <DIV>to be a classic, as it has several other "new" technical 
  indicators.<BR><BR>The SAR assumes that you are always in the market, either 
  long, or short, hence, the</DIV>
  <DIV>stop out point also becomes the new entry point, opposite to the 
  direction you were</DIV>
  <DIV>previously in.<BR><BR>From Wilder's book:<BR><BR>"The general equation, 
  then, is as follows:<BR>SAR(tomorrow) = SAR(today) + AF(EP(trade) - 
  SAR(today))"<BR><BR>AF is the acceleration factor, or "step" that&nbsp; MS 
  uses as a variable.&nbsp; EP is<BR>the extreme price point for the trade made 
  so far.&nbsp; (If long, EP is the<BR>extreme high price for the trade; if 
  short, EP is the extreme low price for<BR>the trade.)&nbsp; In Wilder's 
  formula, the AF starts at .02, and increments by that<BR>amount until it 
  reaches a maximum of .20, hence the parabolic tendency of the<BR>SAR.&nbsp; MS 
  allows you to adjust either the step, or the maximum.<BR><BR>This formula 
  continues on until you are stopped out, which in this system<BR>reverses your 
  position.&nbsp; On taking an initial position, you need to know where<BR>to 
  begin the SAR(today).&nbsp; If you have entered long, then the SAR(today) 
  is<BR>equal to prior LO SIP (lowest significant price), which Wilder describes 
  as<BR>the lowest low of the prior few days.&nbsp; He doesn't pin it 
  down.&nbsp; If your initial entry<BR>is a short position, then the SAR(today) 
  is equal to the prior HI 
  SIP.<BR><BR>========================================</DIV><FONT size=2>
  <DIV align=left>
  <H2><A href="http://www.tradertalk.com/tutorial.html";><FONT 
  color=#800000>TraderTalk Technical Tutorial</FONT></A><FONT size=4><FONT 
  size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT color=#0000ff><FONT 
  size=5>-&nbsp;&nbsp; </FONT>&nbsp; </FONT></FONT><A 
  href="http://www.tradertalk.com/tutorial.html";><STRONG>http://www.tradertalk.com/tutorial.html</STRONG></A></FONT></H2></DIV>
  <CENTER>
  <HR>
  </CENTER>
  <H2>Wilder's Parabolic</H2>
  <DIV>The Parabolic System also called the Stop and Reverse (SAR) system is 
  another pearl originating from the fertile and generous mind of J. Welles 
  Wilder Jr. </DIV>
  <P>The SAR system is different to almost all technical trend following systems 
  in that it is a function not only of price change but also of time. It is so 
  constructed that once the trade is initiated it allows time for the market to 
  react to the change in trend and then as the trend gets underway the Stop 
  progresses with the market, slowly at first and accelerating as the market 
  trend does. The Stop may at intervals stand still as the trend consolidates 
  but the Stop never backs up or reverses. After a specified time has elapsed 
  (ten new price highs in bull markets or ten new lows in bear markets) the 
  progression of the Stop becomes a function only of price. 
  <P>When the Stop is triggered it was originally intended to be an automatic 
  reverse trade. However, the SAR is a trend following system and in a range 
  market the whipsaws can be murderous. So Wilder later qualified the use of SAR 
  signals with his ADX system so that only SAR signals in the direction of the 
  trend should be taken to open positions. Closure of positions by the SAR are 
  not to be taken as entry of reverse trades. Because of the importance of 
  correlating the SAR signals with the appropriate market environment as 
  indicated by the ADX we consider it essential you understand the ADX, hence 
  last month's technical tutorial apparent digression from trend following 
  technical analysis. 
  <P>
  <H3>Parabolas, French Curves and Profits </H3>
  <DIV>To understand the mechanics of the system we must assume and accept that 
  a previous trend has reversed by the triggering of an appropriate SAR point. 
  Once this has occurred we are now in a trade. The first SAR is the extreme 
  point reached in the previous trend, i.e. if we've just gone long the initial 
  Stop is the extreme low of the previous down trend shortly before we were 
  signalled to go long; if we've just gone short then the initial Stop is the 
  extreme high of the previous up trend shortly before we were signalled to go 
  short. We will abbreviate this initial Stop point using Wilder's notation and 
  call it SIP. Once the trade has been opened and the SIP established the SAR 
  for each time period (week, day, hour or whatever time frame you are working 
  in) is calculated as follows: </DIV>
  <P>
  <DL>
    <DT>A. If Long: 
    <DD> 
    <DD>For each time period take the difference of the high of the period and 
    the SAR for the period (so for time period 2, e.g. day 2 - take the 
    difference of the high for day 2 from the SIP) and multiply this number by 
    Wilder's acceleration factor (AF). This total is then added to the SAR for 
    the period (i.e. to the SIP for day 2) and this will give the SAR for the 
    following period (i.e. the SAR for day 3 to continue the example). This can 
    be summarized as 
    <DD>(High of the period - SAR for the period) x AF + SAR for the period = 
    the SAR for the next period. 
    <DD>e.g. (High of day 2 - SIP) x AF + SIP = SAR after day 2 for day 3.</ DL> 
    </DD></DL>
  <P>Wilder's acceleration factor (AF) is 0.02 for the initial calculation. 
  Thereafter the AF is increased 0.02 every period there is a New High made. If 
  a new high is not made then the AF is not increased from the last SAR. This 
  continues until the AF reaches 0.2. Once the AF reaches 0.2 it stays at that 
  value for all future SAR calculations until the trade is stopped out. 
  <P>
  <DIV>
  <DT>B. If Short: 
  <DL>
    <DD>For each time period take the difference between the low of the period 
    and the SAR for the period and multiply this number by the AF and subtract 
    this total from the SAR for the period and this will be the SAR for the next 
    trading period. 
    <DD>i.e. (Low of the period - SAR for the period) x AF - SAR for the period 
    = the SAR for the next period. 
    <DD>e.g. (High of day 2 - SIP) x AF - SIP = SAR after day 2 for day 3. 
  </DD></DL></DT></DIV>
  <P>The AF is initially 0.02 and changes by 0.02 intervals until it is 0.2 but 
  the change in the AF is made only after each New Low of a period is made. The 
  AF is never increased above 0.2. 
  <P>
  <H3>Rules of Advancement </H3>
  <DIV>The SAR is never advanced into the previous period's range or the current 
  period's range. </DIV>
  <P>If Long using daily data: Never move tomorrows applicable SAR above 
  yesterdays or todays low. If the calculated SAP is higher than either of these 
  lows then use the lower low of these two days as the SAR and use this value 
  for SAR calculation for the next day. 
  <P>If Short using daily data: Never move the SAR below the high of yesterday 
  or today. If the calculated SAR is lower than either of these values then use 
  the higher high of these as the SAR for the day and for the future calculation 
  for the following day's SAR.</P></FONT>
  <CENTER>
  <H2 align=left>Using the Parabolic System</H2></CENTER>
  <DIV><FONT size=2>The system is a highly effective system in trends. It is a 
  wicked distributor of your money to your broker and other players in ranging 
  markets, it is after all a zero sum game, one wins only at the expense of 
  someone else's loss. So on no account use it as an automatic SAR (see 
  Wilders's Parabolic). </FONT></DIV>
  <P><FONT size=2>The beauty of the system in trends is that it gives an initial 
  stop that is logically correct. The Stop moves very slowly at first allowing 
  for market realignment to the new trend, then accelerates as the market trend 
  moves. </FONT>
  <P><FONT size=2>The best way to use this system is to use the system to enter 
  the market in the direction of the trend and use the Stops on reversal to exit 
  the market and stand aside until the trend is identified (either resumption of 
  the previous trend or confirmation of a new trend) and the appropriate 
  Parabolic system signal to enter is given. </FONT>
  <P><FONT size=2>One of the best ways to use the Parabolic system is in 
  combination with the ADX indicator. </FONT>
  <P><FONT size=2>If the ADX indicates the market to be trending then Enter on 
  SAR signals compatible with the trend; Exit on those incompatible with the 
  trend. When the ADX is greater than 20 and pointing UP take those SAR signals 
  compatible with the trend. Remember an ADX higher than 20 and moving up is 
  indicative of a trend in force, be the trend UP or DOWN. When the ADX is 
  moving down use SAR signals to exit the market for now the ADX shows that the 
  market is detrending. You can often successfully enter a trend early in its 
  emergence from a range if the ADX has moved up for three consecutive periods 
  from the 16 level, particularly if the rising ADX crosses up above the lower 
  DI line (DI ) moving down (our safe to add position noted last month). </FONT>
  <P><FONT size=2>The AF is increased a total of 10 times from 0.02 at the 
  outset to 0.20 as the final and ongoing AF. The AF is the number of New Highs 
  (Lows) multiplied by 2, e.g. the 5th New High (Low) the AF is 0.10 = 0.02 x 5. 
  This 10 New Highs(Lows) just happens to be an important market observation in 
  Japanese Candlestick charting dating back to the rice markets of 1750. The ten 
  new price lines' or Shinne 10 te' is recognized by Candlestick chartists as a 
  trend long in the tooth and a time to consider taking profits or at least 
  bringing in your Stop. I'm pretty sure Welles Wilder was not aware of 
  Candlestick charting back in 1978. However, it shows two things. First, that 
  keen observations of markets in 1750 or 1950 and even in 2050 will reveal 
  important trading principles; second that people in two different cultures 
  separated by almost 250 years still behave very much the same; human greed and 
  fear put a floor and a cap on the market. Good technical analysis endeavors to 
  discern the likely future mood of the human masses who make up the market and 
  to profitably trade on these insights of market action. </FONT>
  <P><FONT size=2>Wilder used an AF of 0.02 but allowed that one could fiddle 
  with the number between 0.018 and 0.021. I've found an AF of 0.05 to be very 
  useful in short term trading, it reduces the lag considerably. Occasionally 
  you may be stopped out prematurely but it is usually very easy to recognize 
  the experience as a correction of the trend and reenter advantageously. Using 
  an AF of 0.05 with a 15 minute chart using Bollinger Bands (BB) about a 40 
  period MA is a good basis for a day trading system. When prices are above the 
  40 MA you only take long signals, when prices are below the 40 period MA you 
  only take the short signals. This can be further refined by taking reversal 
  trades when prices are at the BB extremes. If you are prepared to keep 
  positions on overnight and in effect trade short term, the same system and 
  criteria can be used using half hourly charts very effectively and with far 
  less lag than if you use the SAR with the ADX as collaborator. </FONT>
  <P>
  <DIV><FONT size=2><FONT size=2>
  <HR>
  </FONT></FONT></DIV>
  <DIV align=center><FONT size=2><FONT size=2><A 
  href="http://www.tradertalk.com/tutorial.html";>TraderTalk's Technical Tutorial 
  Website</A></FONT></FONT></DIV>
  <DIV align=center><FONT size=2><FONT size=2>© Copyright 1997 <A 
  href="http://www.tradertalk.com/DWD.html";><I>D.W. 
  Davies</I></A></FONT></FONT><FONT size=2><FONT size=4><B>&nbsp; 
  </B></FONT></FONT></DIV><FONT size=2>
  <HR>

  <DIV>&nbsp;</DIV>
  <DIV></FONT>&nbsp;</DIV>
  <DIV>-----&nbsp;Original Message ----- <BR>From: &lt;<A 
  href="mailto:bruce@xxxxxxxxxxx";>bruce@xxxxxxxxxxx</A>&gt;<BR>To: &lt;<A 
  href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx</A>&gt;<BR>Sent: 
  woensdag 14 april 1999 3:53<BR>Subject: SAR - Starting AF<BR><BR><BR>&gt; In 
  MetaStock the Acceleration Factor (AF) has 3 variables:<BR>&gt; (a) the 
  Starting AF (b) The increment or Step AF, and (c) The AF Maximum.<BR>&gt; In 
  the Parabolic SAR in MetaStock (b) &amp; (c) can be changed readily; can 
  anybody <BR>&gt; help me to find a way to vary the Starting AF which is fixed 
  at 0.02 
  ?<BR>&gt;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Many 
  thanks,<BR>&gt;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  Bruce 
  Barnard<BR>&gt;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  bruce@xxxxxxxxxxx<BR>&gt; 
<BR><BR></DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sat Apr 17 11:36:41 1999
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Date: Sat, 17 Apr 1999 14:10:58 EDT
Subject: Re: Professional TradeAdvisor98 /  Market Scanning Real Time
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In a message dated 4/14/99 9:14:21 PM Central Daylight Time, animal@xxxxxxxxx 
writes:

<< Equis has this on their web page.  Has anyone used this product.  Any 
comments?? >>
 
  What I wonder is where is EQUIS'  answer to  Omega's  Radar Screen-tm ?
I have not tried  Radar Screen... yet... but i think it is something that 
scans,
 screens (filters) , grades, then ranks and lists prospective 
picks for more detailed  analysis ??   IN  REAL TIME, applying multiple 
systems
written in an easy language.  The emphasis seems to be on  tables and lists
sorted and ranked in real time, with color coding. 
 And i mean  hundreds of  stocks being scanned...  by standard or 
industry  or  custom groups.  Custom Lists and indexes,  custom indexes also
being displayed   as  well  as  MULTIPLE, SIMULTANEOUS simple systems being 
applied,  real time  to each list ?
   Market move faster than the old days.  Fortunes are made or lost in hours 
sometimes.  If  you are 2 days old with analysis and moves,  you  probably 
missed
the big moves.   Surely   EQUIS  is not going to let  Omega  dominate 
this  multiple custom system scanning and ranking T/A software market ??  
Personally, I think Omega's management and their quality control on new 
products
could be easily beaten by a good company. 
 Also, i think Radar Screen pretty much  needs the additional $2400 
Tradestation in 
order to run the  Power Editor-tm for heavy duty custom system writing 
 SO, EQUIS ... what is your reply to  Radar Screen? ?  Particularly to the 
multiple custom system applied to separate tables or lists and ranking them
real time   ????  
RS