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The question is: Can you make money with this ?
Has anyone built a system around it and tested it ?
All this talk of entrophy (looks like a moving avg to me) may not make a
dime in the markets.
----- Original Message -----
From: "wong" <whs@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, June 06, 2004 2:30 PM
Subject: [RT] GEN - simple-minded use of the entropy indicator
> Hi All:
>
> I've been playing around the (smoothed version of the) entropy indicator.
>
> This morning I applied it to a 5-tick chart of Cypress Semiconductor (CY).
> (See attached CY chart.)
>
> I use a length of 125 on an arbitrary basis.
>
> I've been holding CY Jun 40 calls for many months now. I usually get very
> nervous when the option is near expiry. So today I was watching it very
> closely.
>
> The entropy indicator had been above the zero line since the beginning of
> Jun 1, but peaked early in the morning of Jun 2. Just about 1/2 hour ago
> today, the indicator crosses BELOW the zero line (at 1:54 pm).
>
> I thought for a minute or so, and finally decided to close out my
position.
>
>
> This is the way I would like to use the indicator. It may not be the best
> way or even the proper way, but to a simple-minded person like myself, it
> suits my purpose.
>
>
> Thanks Clyde, Bob, Ron, Dennis, Gary and others!
>
>
>
> Regards,
>
> Wong
>
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