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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.
Obviously if one had begun this strategy when the Naz was at 4000 or 5000, one would have a lot of
still open positions.
But given where we are now, doesn't the risk/reward seem reasonable?
I seem to remember that a similar strategy was pursued with gold and silver futures in the 1970's.
Buying and holding the Naz emini has the advantages of diversification and leverage. I know a lot of
people
who are playing a similar game with the QQQ's, but they don't have quite the leverage.
If the long, long term trend is NOT up, is this strategy still viable?
Do you think that slippage from rollover's will have too great an impact?
Best regards,
Matthew Kratter
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