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Hi Robert,
I have Krieger's book. It's been a couple of years since I read it, but
it's basically the same old story: A grab-bag of indicators and other TA
tools (Keltner channel, triple MA's, trendlines, candlestick patterns, S&R,
etc.) presented with a lot of well-chosen examples. It is definitely NOT a
system. He seems like a nice guy, but I've always been leery of promoters
with something to sell. I was bothered by his embarrassingly naive
discussion of options trading:
"If the market keeps falling and moving against your option, you can simply
let the option expire without exercising it. But if the market does reverse
and go your way before its expiry date, you can exercise your call option
when the futures price is profitable for you in relation to your option's
strike price."
Huh? This makes no sense.
A. If you're still holding an out-of-the-money option at expiration, you've
committed one of the cardinal sins of trading: riding a loser all the way
down the drain.
B. It's absurd to exercise an option simply because it goes in the money.
You'd just be throwing away all the time value you paid for. The only
reasons to exercise would be:
a. option expiration or
b. time to exit, but your option is so far in the money that it's very
illiquid and you don't want to take a hit on the B/A spread.
Got off on a bit of a tangent here, but the point I wanted to make was that
he apparently felt comfortable writing about option trading when he had no
clue about options. When I finished reading the book, I felt that I had
just spent X hours (and $50) reading a printed infomercial, i.e. the book is
a sales pitch for his software. Incidentally, if you're interested in
Keltner Channels, there's a nice article by Philip Nixon in Applied
Derivatives Trading (www.adtrading.com). The article is at
http://www.adtrading.com/adt31/keltner.hts -- it won't cost you $50, and
Philip won't try to sell you anything.
Cheers,
Jeff
Original Message -----
From: Gwenael Gautier <ggautier@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, November 17, 1999 5:28 AM
Subject: [realtraders] GEN: Interested in your thoughts on KC Collection
system {02}
> Keltner Channels + MAs (pretty sure) + patterns to enter/exit (I presume)
>
> Gwenn
>
> | -----Ursprungliche Nachricht-----
> | Von: Robert Hodge [SMTP:r-hodge@xxxxxxxxxxxxxxx]
> | Gesendet am: Wednesday, November 17, 1999 11:46 AM
> | An: realtraders@xxxxxxxxxxxxxxx
> | Betreff: [realtraders] GEN: Interested in your thoughts on KC Collection
> | system {01}
> |
> | Having recently read Traders Secrets (Ruggerio and Toghraie) I was
curious
> | about Scott Krieger's methodology. He sells it as the KC Collection and
it
> | shows some interesting trading results (although they are so over-hyped
it's
> | hard to tell whether there is really anything worth looking at).
> |
> |
> | Does anyone on this list have experience with it...?
> | I'm not looking to buy it (as the easylanguage code does not appear to
be
> | disclosed) but I am interested in
> | what the fundamentals of this system are...
> |
> | Robert Hodge
> | Moonlight Systems Limited
> | r-hodge@xxxxxxxxxxxxxxx
> |
> |
> |
>
>
>
|