Re: Naz 100 futures buy and hold system

["Matthew R. Kratter" <mkratter@xxxxxxxxxxxxx>]

John,

I was actually thinking of the Naz emini.
If one starting going long at 4800, 4700, etc. and bought all the way down,
one would need a capitalization of $1,178,000 if we assume the NQ is currently
at 1750 (see attached Excel spreadsheet)
This obviously ignores rollover slippage and commissions,
but it is a far cry from your "several billion dollars capitalization."

I actively trade the Emini and have a capitalization much much less than this,
so I am not about to follow this strategy.
But I *am* interested in it as a thought experiment.  One could imagine doing
the same thing with the QQQ's,
buying 100 shares each time it goes down a point.

Thanks to John and Chuck for their replies.

Matt

John Manasco wrote:

> ----- Original Message -----
> From: "Matthew R. Kratter" <mkratter@xxxxxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Thursday, July 12, 2001 11:40 AM
> Subject: Naz 100 futures buy and hold system
>
> > 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.
>
> Sure if you have a several billion dollar capitalization because right now
> you would be holding on to a several billion dollar loss.

Attachment: Description: "NQ Buy and Hold Strategy.xls"