Contents For JUN1987

  • A complete computer trading program Part 4 by John F. Ehlers

    ARTICLE SYNOPSIS ...A complete computer trading program Part 4 by John F. Ehlers This is the conclusion of four articles that give a description and listing of an Applet“ ][ BASIC computer program, enabling you to perform technical analysis on your computer with 48K of memory and one disk drive. This article adds the Commodity Channel Index, Directional Trend Indicator and Relative Strength Index to the graphical representations of price, moving averages and the Parabolic system....

  • Artificial Intelligence by Neil Gordon, Ph.D.

    ARTICLE SYNOPSIS ...Artificial Intelligence by Neil Gordon, Ph.D. Artificial intelligence (AI) is the field of computer science that attempts to imitate human cognitive behavior in computers. In problem solving, AI reflects the approach, knowledge, viewpoints and biases of the human. Previously, computers have been used to solve only algorithmic problems--write a formula, give the computer complete data and the computer calculates the answer. But all problems do not lend themselves to algorithmic solutions. AI programs differ from more conventional computer applications because they deal with non-numeric (qualit...

  • Eurodollar futures using entry/exit methods combined with stops by S.L. Kille and T.P. Drinka

    ARTICLE SYNOPSIS ...Eurodollar futures using entry/exit methods combined with stops by S.L. Kille and T.P. Drinka In the May 1987 issue of this magazine, we reported the impact of money management on total net profit from simulated trading of Eurodollar futures with Relative Strength Index (RSI) using stops and filters. We simulated trading of the 1983-1985 March, June, September and December contracts for the period of December 2, 1982 through December 1, 1985. The simulations were conducted on the nearby contract only, with roll-over occurring on the first trading day of the expiration month. Trades were made...

  • How to be wrong and still profit by David L. Caplan

    ARTICLE SYNOPSIS ...How to be wrong and still profit by David L. Caplan Why bother learning and using professional option strategies? Why spend the time and energy to learn how and when to use options and option strategies when, in trading futures, all you have to do is use your technical, fundamental or system analysis, pick the direction of the market, follow the trend, buy low, sell high and reap the profits? In comparison to those two or three decisions that have to be made in trading futures, option strategists have almost 40 billion decisions to make! Should options be bought or sold? Should puts or calls...

In This Issue by John Sweeney, Associate Editor

  • Larry Williams: Where will he go next?

    ARTICLE SYNOPSIS ...Larry Williams: Where will he go next? Larry Williams--author, trader, technical systems designer--is a man of many interests. He began following the stock market in 1965, soon started trading and by 1967 was a registered investment adviser. He switched to commodities and is probably best known for the $1 million he made and wrote about in the 1973 bull market. At age 45, he has, among other things, run for the United States Senate in his home state of Montana and narrowly lost, carried on a busy lecture/seminar circuit while managing his trading from airport telephones, written trading books,...

  • Letters To S&C by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. ON THE BALANCE Editor, Hope I qualify as a new subscriber, although I am not a ""brand-new"" subscriber. For the sake of balance, you might try countering those Ph.D. articles with an occasional piece by a high school dropout. WAYNE H. ROBERTS -Atlanta, GA Good idea! However, the Ph.D's seem to be more prolific....

  • Maximizing profits with stop orders: The Wyckoff method of trading stocks part 11 by Jack K. Hutson

    ARTICLE SYNOPSIS ...Maximizing profits with stop orders: The Wyckoff method of trading stocks part 11 by Jack K. Hutson No matter what technical system you use, the first rule of successful trading and investing is: Cut your losses short. No one believed more firmly in this sage advice than Richard D. Wyckoff. ""No one can trade or invest without losses,"" he said. ""Danger is present in every trade, whether it be for investment or speculation. In the stock market you must be constantly on your guard: Always be expecting something to happen."" Stop orders, in Wyckoff's view, are the mark of a professional attit...

  • Modern portfolio theory: A powerful tool for futures investing Part 1 by Gary S. Antonacci

    ARTICLE SYNOPSIS ...Modern portfolio theory: A powerful tool for futures investing Part 1 by Gary S. Antonacci In an effort to improve on the traditional risk and return characteristics available from investment opportunities, academic researchers developed Modern Portfolio Theory. Modern Portfolio Theory shifts the focus of attention from individual investments to portfolios of investments. In fact, the basic premise of Modern Portfolio Theory is that investors should only be concerned with the expected returns and risks of their entire investment portfolio. Returns and risks on individual investments matter o...

  • SIDEBAR: Complete computer trading program by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...SIDEBAR: Complete computer trading program by Technical Analysis, Inc. 10 REM COMPLETE TECHNICAL ANALYSIS BY JOHN F. EHLERS MODIFIED BY JACK K. HUTSON...

  • Winning under stress: the fight-flight reaction by Van K. Tharp, PhD.

    ARTICLE SYNOPSIS ...Winning under stress: the fight-flight reaction by Van K. Tharp, PhD. In primitive times, basic survival was man's most potent source of stress. Life or death, quite literally, hung in the balance of everyday decisions and one way early man learned to cope was by developing the ''fight-flight"" reaction. It was a primitive, biological response to decision making under stress--either battle the apparent threat or run away from it. This behavioral legacy is one that traders still must deal with today--even though we live in an entirely different world with entirely different stresses. But unlike...