Strategy Central

[fast_eddie]

John, I've been unable to duplicate his reported results with my own trading although I've done pretty well in March so far. Made a couple bad decisions in Feb that cost me.

Moneymachine does require paying attention throughout the day (or the portion of a day that you're trading). It's not a "buy at the open" mechanical system. Because of qqqq volatility and the degree of leverage in options, a trade can quickly get away from you if you wander.

Typically, the first signal comes sometime during the first hour and I've held positions for from less than an hour to several hours, rarely over night.

Current month options on qqqq typically have b&a spreads of a penny, so slippage isn't a factor. I will use market orders and with the high volume getting a quick fill has not been a problem. Of course, if you were trying to buy several hundred or 1000 contracts instead of less than 100, it may become a factor.

I typically use whichever option is priced at around a dollar. 10 cents price change is your 10 percent for the day and you can go home. 7 or 8 10 percent trades and you've doubled your money. The secret is getting in on the right side and at the right time.

Hope this helps. Good luck.

FE