Kudos to MMs

For those that are following ANFV out of corner of the eye, yesterday it led us higher incorrectly _as_a_day_trade_ (although the trade was profitable in the morning), but then turned around and led us lower today correctly.

As expected, it is far more agile than NFV, but it remains to be seen what happens to the downside...

 

sounds like blasphemy

 

NFV 1111.27. ANFV 1152.55. SPX 1157.90.

We may get 50-edge!!! Patience...

 

NFV 1112.41. ANFV 1153.81. SPX 1157.83.

Nothing to do. Got to rise early tomorrow, since employment report always moves markets.

 

You were "hoping" the SPX would rise significantly and move closer to 1072 when you <b>already had 3 units short</b>? So you <i>want</i> the market to move significantly <b>against</b> your existing position just so you get to add another unit?

This entire line of thinking makes absolutely no sense to me. Would you care to try explaining/justifying this?

 

NFV 1108.73. ANFV 1152.3. SPX 1160.59.

Edge 52. Add short unit here @1160.59.

 

I will try my best to explain.

When you trade a model, you have a feel for it. In particular, you get a feel for how it responds to the inputs. The feel that I had was that NFV was going to add another unit somewhere in here. Lets enumerate the scenarios: If the market is going to go lower and correct, would you rather add a short unit at 5, or at 7? If the market is going ballistic, would you rather add a short unit at 5, or at 7?

Therefore, by pure logic, you always want to add to a position as "cheaply" as possible, higher if shorting, lower if buying, regardless of what current position you have on. The current positions are in the hands of the market. The only one that is in your hands are the ones whose decisions you still have to negotiate.

 

Code:

[B]Date         Action    Quant Price   Position  Basis    Realized G/L[/B]
09/02/10     Short     -1    1089.00    -1    1089.00    
09/03/10     Short     -1    1104.00    -2    1096.50    
09/09/10     Short     -1    1107.00    -3    1100.00    
09/13/10     Short     -1    1121.75    -4    1105.44    
09/15/10     Cover     +2    1116.75    -2    1105.44     (22.63)
09/16/10     Cover     +1    1118.00    -1    1105.44     (12.56)
09/17/10     Short     -1    1133.00    -2    1119.22    
09/20/10     Short     -1    1142.50    -3    1126.98    
09/23/10     Cover     +1    1124.00    -2    1126.98     2.98 
09/24/10     Short     -1    1140.68    -3    1131.55    
09/24/10     Short     -1    1146.62    -4    1135.31    
09/28/10     Cover     +1    1133.19    -3    1135.31     2.12 
09/28/10     Short     -1    1145.05    -4    1137.75    
10/04/10     Cover     +1    1138.43    -3    1137.75     (0.68)
10/05/10     Short     -1    1152.90    -4    1141.54    
10/08/10     Short     -1    1160.59    -5    1145.35    
                                               [B] Total     (30.77)
                        
SPX    1160.59    Unrealized Gain/Loss         (91.37)   [/B]     

 

NFV 1110.06. ANFV 1153.39. SPX 1162.73.

Nothing to do, just an update.

 

SPX 1165.12. nitro, what exactly is the secret of your success(failure)? Balls of titanium or Brains of feces?