Purely Mechanical Option Trading

Thank you IV_Trader.

 

Another good trade, I was going to mention that DeMark has some information on establishing a buy range for options. The basic idea is to buy calls or puts that have declined 48% to 55% (no more, no less) are a good buy. There are other rules but I don't want to divulge someone else's hard work. See DeMark on daytrading options. The book is online in pdf form if you hunt around for it. Good trading.

 

Thank you kinggyppo,
also that's interesting stuff on DeMark.

 

You can download book from here. http://rapidshare.com/files/94846526/DeMark_Tom_-_DeMark_on_day-trading_options.rar

 

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Here's some (mostly negative) reviews:
http://www.elitetrader.com/bo/index.cfm?action=view&B_ID=25&CatID=4

 

Hi Jeff,

Very impressive so far -- hopefully you'll keep posting as an inspiration that others this can be done even with an expert system.

I have some software that I wrote which performs asset allocation based on Ralph Vince's work that will be useful for you if depending on how your next series of trades goes.

--Bigdavediode

 

IMO, it looks like a system based on mean-reversion. I see no evidence that OI has anything to do with it. If so, please allude to some of the basic logic.

 

Atticus, respectably, all jeff needs do is make his calls.
That’s’s the proof.
What's his system logic got to do with it ?

My suggestion is jeff, say nothing. As soon as you devulge some of your system ideas, that will just start another flame war as everyone and his uncle will try to disprove your theory. We’ve already seen a taste of that.

Unfortunately, there's so much negativity on this board, that is it quenches people from posting useful stuff.
Wannabee traders ( not referring to atticus) who puff their chests out and forever into pissing contests.

I’m enjoying your thread jeff even tho I don’t trade options.

 

The problem is that so many people make claims, performance or otherwise, without providing any objective scientific evidence. No independently reviewed statistical data.

Of course, why should they? This is an anonymous board and if they did reveal a system with a true statistical edge, it would get arbed away very quickly. Believe none of what you hear, and half of what you read (or even less.)

 

I have ZERO interest in trading his methodology.

Anyone can answer. What is the point of this thread?