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THE 4% SYSTEM.



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My 4 % system is about to go long.  In case you don't remember, the 4 % system
has the following Easy Language code:

(C = S&P500 CASH)

IF C[1]< 0.96 * Highest(H,15)[1] and C>C[1]   ===>  GO LONG ON THE CLOSE!

IF C<0.96 * EntryPrice or MaxPositionProfit > .04 * EntryPrice or C crosses
below Parabolic(0.00175) ===> EXIT LONG NEXT BAR AT THE MARKET!

What this means is if the S&P cash pulls back 4% below the HighestHigh of the
last 15 days and then goes up (any amount), you buy that day on the Close.  
Then if the S&P rises 4% or drops 4% or closes below the Parabolic, you sell
at the next market opening price.

This system since 1/5/84 has made 63 trades, 79% profitable with a profit
factor of 4.33.   17 out of its last 19 trades were profitable.  Run it in
SuperCharts yourself !

Now nobody should blindly trade this sytem!  But (1) knowlege of its existence
reduces some of the bearish panic that prevails, and (2) it's a good Easy
Language coding exercise for SuperCharts newbies.

Best regards,

Jerry Rehert  (grehert@xxxxxxx)
Check out my WebPage:  http://members.aol.com/grehert/
April 28th, 1998 @ 08:46 pm
Atlanta, GA