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You also pay for the time-value of money each quarter when you roll to the
next contract.
Kent
> >
> > 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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