|
PureBytes Links
Trading Reference Links
|
In a message dated 4/5/99 10:14:51 PM Eastern Daylight Time,
ericrogers@xxxxxxxxxxxxx writes:
<< I think everybody is missing Ben's point about what he is trying to
convey with this strategy. He is buying INSURANCE. Look up the meaning
in the dictionary if you forgot. It is not about how you can make more
or the same money with less cost. If you do some back testing on his
method which I have done, the INSURANCE will keep you in a trade (I
should say should) longer because you do not have to worry about a
temporary sell off if you are long futures. If you want to go for a
bigger hit on the upside you can hold overnight because you have
INSURANCE. These days a 5 point stop maybe needed on a trade to avoid
being stopped out of what may be a winning trade. If we loose $1250 2
or 3 times in a row most of us would not be a happy camper. Yes you
will not make as much with the put insurance but you will not have a
heart attack either. How many people out there have taken 100 plus
points profit on the S & P futures. that is
$25000. Oh excuse me, less the insurance. I will pay the insurance
bill for a profit of that amount any day. My back testing was done at
what I considered major short term oversold conditions. He is only
looking, or I should say, talking about taking 20 points out.
>>
good morning
in 1997 and 1/2 of 1998 i was long sp for the whole contract length of time
taking in 150-350 sp ponts every quarter.
and sleeping good every night
happy trading
Ben
|