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Mark Brown -
This list knows only too well your capacity for rambling on and on and on,
in illiterate fashion, but, bearing in mind your first sentence, do you
actually have an answer to the question?
Bill Eykyn
>>Hi,
>>
>>I hope that somebody can enlight me on the following two issues:
>>
>>1. What is the difference between the 'Close' and 'Settle' price?
>> How is 'Close' price actually arrived at?
>
>
>I'll enjoy answering this one.
>If you have a system that generates a buy on
>close. And that close was the Friday of Super Bowl Sunday and you had a
>Bond model that gave you a buy on that close you would have learned what I
>have learned about all of this. I knew that I was getting close to a buy
on
>the bonds that Friday and I did some calculations and I was definitely
going
>to get a buy on the close of the bonds. So just prior to the close of the
>bonds I went in and got long. Sure enough when the bonds closed Friday I
>did get a buy arrow that poped up just as predicted. So the other markets
>closed and we all went home for the weekend. Weekend over they notice the
>power had gone off in the building, they called me, I decided to stay home
>that day. They said hey the buy arrow on the bonds is missing on the Ned
>Davis system and the TS. I said no way, I still have mine. Now this
>wouldn't have been so important but the bonds had crashed and we were in a
>world of hurt. So I rolled out of bed and crawled to my trading room and
>there I had a multitude of monitors all showing buy arrow still there from
>the previous Friday close. With me so far? OK I'm telling them at work
>your nuts and your all kidding me, they claim no. So I noticed that the
>bonds had settled lower than they had closed buy I think two ticks. I got
>to thinking, they told me the power went off so I emulated that by closing
>charting in Omega TS and leaving the server running. WELL! to my surprise
>no buy arrow appeared any more! It had disappeared just like they had all
>told me, I couldn't believe that our other software product had given the
>exact same results. So moral is from now on if we get a signal on the
>closing bar of the day on a system we wait for the settlement and them
close
>and reopen to make sure its a valid system signal. If it is on the close
of
>a Friday we wait for Sunday night trading to place the order. That is the
>policy now in place. That lesson cost me about 18% this year on that one
>model, if it weren't such a good system I'd been doomed this year from that
>one trade. I will also comment you only find these things out when you are
>actually using the program to trade and you have money riding on the
>software, then and only then does every little detail about the software
>matter so much to you. MB
>
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