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PLAY OF THE WEEK
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Monday, July 11, 2005 |
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JBX has formed a BULLISH HARAMI on the rising 20 MA Look for HIGHER prices in the next few days. |
MORE CANDLESTICKS . . .
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Long Setups (click on symbol to view chart) |
| NXTP NXTP has formed a LONG RED REAL BODY on rising 10 MA Look for HIGHER prices in the next few days.. |
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Short Setups |
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Here’s a complimentary update from our Dynamic Options service, which is running at an 80% win rate since implementing the DOT System.
For those of you new to options, they’re a great way to bet less money and, through the use of leverage, make more money in a short period of time. The best thing about this service is that it can be autotraded - meaning that you don’t even have to read the alerts to act on the trade - you just need an account with one of the brokers on our site (and a subscription) and they’ll execute the trade for you.
Our options trader implemented this system in the beginning of March with impressive results. The system took a short term hedge to its long position on Friday based on the market reversal.
Read on to find out how you can sign up for a FREE 4-WEEK TRIAL and give it a try.
Regards,
Jay DeVincentis
[Updated as of May 10, 2005: All closed trades since implementation of the back-tested Dynamic Options Trading System on March 14, 2005.]
[Updated: May 8, 2005]
(based on hypothetical back-testing)
The Dynamic Options Trading System (DOT System) is a trading system based on a set of market oscillators created by the Editor of Dynamic Options and applied to the S&P 500 Index (SPX) and Nasdaq 100 Index (NDX). The oscillators measure market overbought/oversold conditions on non-price related market data.
The Dynamic Options Service trades options on SPY and QQQQ, the Exchange Traded Funds (ETFs) that move in lockstep with the underlying SPX and NDX indices, respectively.
The System trades end-of-day signals derived from a set of proprietary algorithms applied to the DOT oscillators through a seasonal filter. Stops on DOT System trades are no greater than 3.75% on the underlying indices.
Because options do not move in linear lockstep with the underlying ETFs (options have deltas, gammas, thetas, and vegas, among other “Greek” variables) we are only able to back-test the DOT System signals on the underlying indices, as shown below, and not on specific options positions. However, the Dynamic Options Service optimizes its gains by profiting from both the DOT System signals and from the unique characteristics of the options it trades. That is, the Dynamic Options Service makes use of the “curvilinear” risk/reward parameters and “Greek” variables built in to options pricing models to increase its profitability.
The first graphic tabulates the results of the SPX DOT System signals from December 1998 through May 2, 2005.
The DOT signals have gained 3,269 SPX points in this time frame.
The following chart tracks the trade-by-trade progression of the data tabulated above.
The first graphic below tabulates the results of the NDX DOT System trades from March 1, 2000 through May 2, 2005.
The DOT signals have gained 5,155 NDX points.
The following chart tracks the trade-by-trade progression of the data tabulated above.
By way of comparing DOT System’s performance to the broad market over the time periods in question:
Note: The data series from which the DOT oscillators are calculated have been collected only since Dec ’98 and Feb ’00 on the SPX and NDX respectively, hence the differing look-back periods for our back-testing.
Past performance is not a guarantee of future success or performance. Dynamic Options and its advisors are not brokers, not market makers, and are completely independent and impartial. Dynamic Options and its advisors are not registered investment advisors so they may not give individual investment advice. Speculating with options involves significant risk. You can lose all or part of the money with which you speculate. Upwards of 90% of all option purchases may be losing trades. Never risk money that you cannot afford to lose in speculating with options. Individuals' results may vary widely depending on time of order entry, broker used, market conditions, and time of execution.
In order to get your special 4-week FREE trial*, simply sign up for the Dynamic Options: Index Options Strategies monthly subscription and enter the free code CSS0605 in the "Message or Comments" section (see image below) when you enter your shipping information to our merchant. You will not be charged for the trial period (your initial transaction will be voided), and you can cancel your free trial at any time within the 4-week period without ever being charged - and that's our guarantee to you.
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Disclaimer: Candlestick Shop is neither an investment advisory service nor an investment advisor. We are not investment advisors and do not purport to tell people, or suggest to people, what they
should buy or sell for themselves. Trading and investing can be a very dangerous venture for there maybe a very high degree of risk involved. Past results are not indicative of future returns. The information provided here is for entertainment purposes only, and does not come with a warranty of any kind, should you choose to interpret is as investment advice. In no way is Candlestick Shop a sponsor of any of the securities listed here. It is entirely possible that any member of the Candlestick Shop staff may at times buy, sell, or hold any of the securities covered on this site.
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