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Hi Matthew,
there is a book by R. Wiest, "You can't lose trading commodities", which is
about this strategy. You might also have a look at www.scaletrading.com.
Not that I would advocate this type of trading - except perhaps as a
spectator sport.
Best wishes,
Michael Suesserott
> -----Ursprungliche Nachricht-----
> Von: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]Im Auftrag von Matthew R. Kratter
> Gesendet: Thursday, July 12, 2001 17:40
> An: metastock@xxxxxxxxxxxxx
> Betreff: 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.
> 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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