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Author: Vol Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 162  
Subject: Re: Scale Trading Date: 8/14/2008 6:40 PM
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An example of scale trading: Natural Gas

Instead of using the futures you can use the ETF UNG. 52 week range is 33 to 63. Current price just under 38. Sept08 NG is 8.06.

You could set up a scale to buy and sell at 1 pt intervals. 100 shares per transaction. Example below would initiate purchases at UNG 40.

A	B	C	D	E	F	G	H	I	J	K
100 50%
1.0 1.0 1 40 41 0 0 0 2000 2000
1.0 1.0 2 39 40 1 100 100 100 3900 4000
1.0 1.0 3 38 39 2 100 200 300 5700 6000
1.0 1.0 4 37 38 3 100 300 600 7400 8000
1.0 1.0 5 36 37 4 100 400 1000 9000 10000
1.0 1.0 6 35 36 5 100 500 1500 10500 12000
1.0 1.0 7 34 35 6 100 600 2100 11900 14000
1.0 1.0 8 33 34 7 100 700 2800 13200 16000
1.0 1.0 9 32 33 8 100 800 3600 14400 18000
1.0 1.0 10 31 32 9 100 900 4500 15500 20000
1.0 1.0 11 30 31 10 100 1000 5500 16500 22000
1.0 1.0 12 29 30 11 100 1100 6600 17400 24000
1.0 1.0 13 28 29 12 100 1200 7800 18200 26000
1.0 1.0 14 27 28 13 100 1300 9100 18900 28000
1.0 1.0 15 26 27 14 100 1400 10500 19500 30000
1.0 1.0 16 25 26 15 100 1500 12000 20000 32000
1.0 1.0 17 24 25 16 100 1600 13600 20400 34000
1.0 1.0 18 23 24 17 100 1700 15300 20700 36000
1.0 1.0 19 22 23 18 100 1800 17100 20900 38000
1.0 1.0 20 21 22 19 100 1900 19000 21000 40000
1.0 1.0 21 20 21 20 100 2000 21000 21000 42000


Columns reference:
A	Buy Interval
B Sell Interval
C Buy Level
D Buy Price
E Sell Price
F Losing Contracts
G Loss Per Contract
H Possible Cumulative Loss Per Contract
I Possible Cumulative Loss-All Contracts
J Cumulative Required Margin
K Minimum Account Funds
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