trading system

Discussion in 'Journals' started by quicknorisk, Jul 13, 2007.

  1. today have started this

    1) initial capital usd 2500

    2) day trading cbot grains options only

    3) entry: when underlying cummulates 15 cents price movement in last 5 sesions buy puts (if movement was down) or calls if moved opposite.
    This is a kind of contrary strategy.

    4) what yo buy: closest to underlying price out of the money options at a maximun cost of 5cents (or usd 250 per contract), minimun 15 days trading days ahead to trade.

    5) exit: at 40pct gains or when not enough trading days ahead and when at least save the in/out commision.

    6) drawdown: only premiun paid for options

    7) maximun 5 contracts at a time

    8) will finish the programme when run out of money or by december 31st.

    look like a lotto but it is a system anyways. very simple also.

    comments are welcomed!