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>
> It will. That's why longtime futures traders predicted that the 90's
> newbie equity traders will defect to futures trading because it offerers
> leverage
Hmmm. I'm a longtime futures trader and that thought never crossed
my mind. After all, wasn't that leverage always there?
As for using the leverage, I guess it's a lot easier to beef up your
number of contracts to supplement less income due to lower
ranges than it is to increase your number of stocks.
But that's not the only way it works. At least not for me.
If I'm working off the price/time axis and price is shrinking
(intraday )and time is not. That's disturbing.
I can't shrink time to make the two proportional because I have
no idea at what time the market will move on any given day and
tickbars are not a practical option because of my multiple data inputs.
It's been my experience that while price range may shrink, noise range
doesn't necessarily follow suit nor does the cost of doing business.
Therein lies the problem. For myself, my system still works fine in
the 2002 environment but I see hard times for it if we drop from the
26 pt average down to the current 20 pt average and then land on a
14 pt average or so. So I hope your wrong.:-)
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