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
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