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Re: Naz 100 futures buy and hold system



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This was published as fiction in a pocket book 
about 30 years ago. I don't remember the title, but it probably was 
something about gambling, like gambling, roulette, or break the bank. Since 
the system was the reverse of conventional wisdom, the Martindale. it just might 
work.
Lionel Issen<A 
href="mailto:lissen@xxxxxxxxxxxxxx";>lissen@xxxxxxxxxxxxxx
<BLOCKQUOTE 
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  Macromnt@xxxxxxx 
  
  To: <A title=metastock@xxxxxxxxxxxxx 
  href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx 
  Sent: Sunday, July 15, 2001 7:53 PM
  Subject: Re: Naz 100 futures buy and hold 
  system
  In a message dated 
  7/13/01 4:24:24 PM Eastern Daylight Time, <A 
  href="mailto:gcwallace@xxxxxxxx";>gcwallace@xxxxxxxx writes: 
  <BLOCKQUOTE 
  style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid; MARGIN-RIGHT: 0px" 
  TYPE="CITE">No money management system can turn a net losing game or 
    system into a winner. Hi! I am sorry to 
  disagree. As a matter of fact to take the same example of roulette it has 
  been done. About 25 years ago a group of Englishmen went around the 
  casinos of Europe and won playing with a money management system that was 
  exacly the opposite of the classical martingal: each time they were losing 
  they were reducing there bets but were letting their profits run up to the 
  casino limit when they had a winning strike. I don't remember the details 
  but very quickly they were not allowed to step in any casino. They were 
  putting the casinos in the position of the beginner gambler who plays a 
  martingale. But we agree on this : this is your anti-martingale. For me an 
  anti martingale is money management. There are some other 
  martingales that are a little bit more subtil that sinply doubling every 
  losing bet. For instance you write a column with the following numbers: 
  1 2 2 1 2 2 You first bet will be 3 (the sum of 
  the first and the last number). If you win you cross the first and the 
  last number and your next bet is 4 (the sum of the first and the last 
  remaining number). If you lose you writ the amount of your first bet at 
  the bottom of the column and you gamble the sum of the first and the last 
  (4). And so on till you have crossed all the numbers. then you start a new 
  columd. It works most of the time... till it does not work. Anyway all 
  those martingale end up with ruin and even if they did not the potential 
  profit is far to small in comparaison with the capital engaged. If teh 
  capitalization needed to trade this system (and to lose) on the Nasdaq 
  would have been over $1M starting when the Nasdaq was between 4000 and 
  5000, what would have happened if the Nasdaq had gone up to 6000. The 
  (lucky) investor would have had one position winning and the gain would 
  have been very small compared with the reserve needed tro trade this 
  martingale to the current Nasdaq level (assuming that it does not go 
  lower). About money management turning a losing game into a winner it 
  seems to me that trading the markets does not have a psoitive expectation 
  if you take into account slippage and commissions. If we make money on the 
  markets if thanks to good money management. You can object that the stock 
  market has a positive expectation because it ALWAYS goes up over a long 
  period of time. However the studies shows that this long period of time is 
  75 years and I am not ready to wait so long to make sure that history 
  repeats itself.