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 jeffalvinson   Registered: Nov 2006 Posts: 453 10-04-12 09:37 PM Quote from StarDust9182: Without too much detail, can you describe the method you use and the time frame of the trades please? I wasn't a member of the glorious ET site for your first thread. Lets take a real example of the data and program outs that resulted in the 10/3/2012 winning call trade: (this data is from the evening of 10/2/2012 to determine a trade for 10/3/2012) SIG DATE..OPTION.....PREV...OPEN..HIGH..LOW...CLOSE 10-02 OCT143C..2.58...2.89...3.00...2.24....2.59 2012..OCT146P...2.57...2.20...2.85...2.05....2.22 ..........OCT144C..1.94...2.27...2.36...1.62....2.02 ..........OCT145P...2.02...1.70...2.26...1.57...1.73 TREND COUNTER: CALL SEQ 2 3 DAY TREND..CALL=13-26-4=L2......PUT=19-12-30=L4 3 DAY DECISION OCT144 CALL: BUY LIMIT=1.74..SELL LIMIT=2.24..STOP=1.21 ------------------------------------------------------------- 9 DAY TREND: CALL=34-59-43=L3....PUT=58-43-61=L4 9 DAY DECISION: OCT146 PUT: BUY LIMIT=1.65..SELL LIMIT=2.15..STOP=1.05 There is 3 mathematical formula's integrated into a computer program: The formula's are looking at each option's previous close, open, high, low and today's close. 1: One formula derives an overall Math Trend from that data and is basically a trend counter...example, Call Sequence: 1..2...3...etc.. or Put Sequence: 1...2...3...etc. 2: Another formula is looking at the 3 day math trend (over the last 3 days) in a different way with the possibility of trading with the trend, or contra (opposite) to that that trend, or none. 3: And still another formula is looking at the 9 day math trend and looks for the age of the trend, strength or weakness of trend, and ultimately decides to trade with the math trend, or contra, or none. Jeff Edit/Delete • Quote • Complain
 jeffalvinson   Registered: Nov 2006 Posts: 453 10-05-12 02:46 PM I placed the following trade today with automated IB bracket order (Buy Limit / Sell Limit / Stop): SPY OCT 148 Put Buy Limit = 1.80 Sell Limit = 2.25 Stop = 1.08 (Note: this trade could end up with a Buy No. 2) Jeff Edit/Delete • Quote • Complain
 jeffalvinson   Registered: Nov 2006 Posts: 453 10-05-12 02:59 PM The program listed 2 buys for today's put trade which indicates I am buying into to weakness (contra). Here is the other buy (Buy No. 2): SPY OCT 148 Put Buy 2: 1.36 Sell Limit: 1.90 Stop: 1.08 Jeff Edit/Delete • Quote • Complain
 jeffalvinson   Registered: Nov 2006 Posts: 453 10-05-12 03:45 PM Just learned I have a family emergency and have to drive to Spokane Washington (from Missoula Montana) right now. I won't be able to manage this trade for Buy No. 2, so I just closed the trade at breakeven. I am taking off for Spokane. Have a good weekend, Jeff Edit/Delete • Quote • Complain
 jeffalvinson   Registered: Nov 2006 Posts: 453 10-09-12 02:00 PM I placed the following automated brackets orders: [Trade 1 ] SPY NOV 146 CALL BUY LIMIT: 2.05 SELL LIMIT: 2.70 STOP: 1.41 ----------------------------------------------------------------- [Trade 2 ] SPY NOV 146 PUT BUY LIMIT: 1.65 SELL LIMIT: 2.15 STOP: 1.15 Jeff Edit/Delete • Quote • Complain
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