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<DIV>Hi RT's,</DIV>
<DIV> </DIV>
<DIV>here are several excerpts from this report:</DIV>
<DIV> </DIV>
<DIV><EM>"Numerous market studies have concluded that accurate market timing is
not possible, even for professional money managers. Day trading is the ultimate
test of market timing in that the trade is opened and closed within the same
day."</EM></DIV>
<DIV> </DIV>
<DIV><FONT color=#0000ff>What a conclusion! The goal of day trading is not
to time the market, but to jump on a trend and ride it.</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><EM>"The day trader doesn’t know if a stock takeover is going to occur and
cause an immediate large loss in his or her short position..." </EM></DIV>
<DIV> </DIV>
<DIV><FONT color=#0000ff>Takeover and similar announcements must be made before
or after normal market hours. A true day trader would have no such
exposure.</FONT></DIV>
<DIV> </DIV>
<DIV><EM>"Exhibit G shows that all of the trades held 3 days or less were
profitable, while all trades held over three days were losses. Please note that
all 10 long-term trades in the A26 account are losses and that A26 had a 100%
risk of ruin when all trading was considered.</EM></DIV>
<DIV> </DIV>
<DIV><EM>An effective day trading analysis must therefore consider both the day
trading and non-day trading conducted in each account."</EM></DIV>
<DIV> </DIV>
<DIV><FONT color=#0000ff>Seems to me this proves day trading is profitable and
short term trading is not.</FONT></DIV>
<DIV> </DIV>
<DIV><EM>"The largest 1,000 share loss was $81,522."</EM></DIV>
<DIV> </DIV>
<DIV><FONT color=#0000ff>What stock moved 81-1/2 points in a day? This had
to be a position trade, and a person who position trades has tools including
stops and options to prevent such losses.</FONT></DIV>
<DIV> </DIV>
<DIV><EM>"For example, the original A26 account had 3-day trades with all of
them successful. The A26 trades are included at Exhibit G and illustrate the
problem. Two of the three winning day trades were conducted utilizing INFO SEEK
CORP on 4/24/98 for a $648.74 gain. However, another INFO SEEK CORP trade opened
on 4/24/98 was held 40 days for a $13,863.30 loss. In fact, it is clear that the
A26 trader is not an effective day trader, but just a poor trader who cannot
take a loss."</EM></DIV>
<DIV> </DIV>
<DIV><FONT color=#0000ff>Interesting conclusion. It seem that A26 is a
good day trades but a piss poor position trader!</FONT></DIV>
<DIV> </DIV>
<DIV>
<P align=justify><EM>"Indeed, an analysis of all the trading conducted in all
the accounts shows that the average losing trade was held twice as long (9.53
days), as the average winning trade (4.52 days). The average intraday trade was
also a losing trade. In short, these public short-term traders were cutting
their profits short and letting their losses run."</EM></P>
<P align=justify><FONT color=#0000ff>What this shows is that short term trading
is more profitable than longest term trading. It is apparent that position
trading involves more risk than day trading.</FONT></P></DIV>
<DIV>It is very apparent from this report is that day trading like any type of
trading entails risks when not done in a disciplined manor, in fact it glosses
over the one trader that they found out of there limited sample who was using
proper money management and limiting his/her risk to make good money.</DIV>
<DIV> </DIV>
<DIV>It is further apparent it is a smoke screen to cover an attempt, lead by
the State of Massachusetts to promote further regulation or even elimination of
day trading firms.</DIV>
<DIV> </DIV>
<DIV>Today I purchased 10 OEX Puts at 2:24 PM EDT for 9-1/2 and sold them
at 10.5 a few hours later. I made a similar trade Friday and Thursday
and Wednesday and most days, some losers but mostly winners. I guess they
will be after me next.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>
Good
luck and good trading,</DIV>
<DIV> </DIV>
<DIV>
Ray Raffurty</DIV>
<DIV> </DIV>
<DIV>----- Original Message -----
<DIV>From: Ronald McEwan <<A
href="mailto:rmac@xxxxxxxx";>rmac@xxxxxxxx</A>></DIV>
<DIV>To: <<A
href="mailto:realtraders@xxxxxxxxxxxx";>realtraders@xxxxxxxxxxxx</A>></DIV>
<DIV>Cc: <<A
href="mailto:Realtraders@xxxxxxxxxxxxx";>Realtraders@xxxxxxxxxxxxx</A>></DIV>
<DIV>Sent: Monday, August 09, 1999 6:35 PM</DIV>
<DIV>Subject: RT_GEN: Day Trading News</DIV></DIV>
<DIV><BR></DIV>> goto www.nasaa.org and
you can read the whole 46 page report. If you want<BR>> to daytrade after you
read this "good luck"<BR>> </BODY></HTML>
</x-html>From ???@??? Mon Aug 09 21:12:50 1999
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Tue, 10 Aug 1999 00:48:38 -0500 (CDT)
Message-ID: <37AF9441.AB57DEEC@xxxxxxx>
Date: Mon, 09 Aug 1999 21:53:53 -0500
From: Clyde Lee <clydelee@xxxxxxx>
Organization: SYTECH Corporation
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To: rl2946@xxxxxxxxx
CC: walt@xxxxxxxxx, realtraders@xxxxxxxxxxxx, realtraders@xxxxxxxxxxxxx
Subject: Re: Inside Bars
References: <49149b56.24dde8e4@xxxxxxx> <37AF6111.57E5@xxxxxxxxx> <37AF7762.43FCDF92@xxxxxxxxx>
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Status:
Here is an update on InsideDay system with a few changes.
Look carefully. One set of parameters give a 52% per year
return.
Clyde Lee
{
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
System: Inside Day
Inputs : None
Test inside day theory.
Mode 0 =Buy on breakout depending on difference
in inside day h&l to prior day h&l divided
by the value of EntMult.
Mode 1 =Buy on breakout of high+ or Low- 14 Day ATR
MULTIPLIED by the value of EntMult
Mode 2 =Buy on breakout of H (on uptrend defined by
position of Close to XAverage) with stop at
low of prior day or sell on breakout of L
(on downtrend) with stop at prior day high.
Exit on next inside day if trade occurs.
Exit on MM stop based on multiple of 14 day ATR
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
}
Input: StopMult(1.5),
EntMult(0),
AvgLeng(15),
Mode(0);
Var: Div(Iff(EntMult=0,2,EntMult)),MP(0);
Value3=AvgTrueRange(14);
MP=MarketPosition;
If currentbar > 1 then begin
Value1=H[1]-H;
Value2=L-L[1];
If Value1>0 and Value2>0 then begin
If Mode=0 then begin
Buy H+Value1/Div on Stop;
Sell L-Value2/Div on Stop;
End
Else If Mode=1 then begin
Buy H+Value3*EntMult on Stop;
Sell L-Value3*EntMult on Stop;
End
Else If Mode=2 then begin
Value4=XAverage(c,AvgLeng);
If C>Value4 then begin
If MP<=0 then Buy H on Stop;
ExitLong at L[1] on stop;
End
Else If C<Value4 then begin
If MP>=0 then Sell L-Value3*EntMult on Stop;
ExitLong at H[1] on stop;
End;
End;
End;
End;
If StopMult>0 then begin
If MarketPosition>0 then
ExitLong at EntryPrice - StopMult*Value3 Stop
Else If MarketPosition<0 then
ExitShort at EntryPrice + StopMult*Value3 Stop;
End;
Rory Lewellen wrote:
>
> Walt,
>
> Have you any numbers you could share which might give an indication
> of the measure of historical success using this easy to follow rule?
>
> Rory
> walt@xxxxxxxxx wrote:
> >
> > Peter,
> >
> > In the case of a downtrend, enter at the low of the inside bar
> > with an initial stop-loss at the high of the preceding bar.
> >
> > Like:
> >
> > stop
> > X
> > X X
> > X X
> > X X
> > X Entry
> >
> > Walt
> >
> > > Hi Walt,
> > >
> > > In your example, where would you enter and where would you place your stop?
> > >
> > > Regards,
> > >
> > > Peter Greco
> > >
> > >
--
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Clyde Lee Chairman/CEO (Home of SwingMachine)
SYTECH Corporation email: <clydelee@xxxxxxx>
7910 Westglen, Suite 105 Work: (713) 783-9540
Houston, TX 77063 Fax: (713) 783-1092
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