Anatomy of a Trade
by JACK K. HUTSON
All you have to do to be successful is follow the advice you give to others. -- The Scottish Rite Torch.
WEEDING OUT THE TRASH
During a daily course of market review we produce a number of computer studies to supplement our
chart and fundamental rumor collection. These daily studies are augmented by a more thorough weekly
look at the past price movement over a great length of time. From this weekly detail review of historical
daily land weekly) price change we determine which markets are in an advantageous trading position. For
example, in the commodities markets we generally analyze 26 contracts and 10 associated cash markets
by first studying 14 perpetual contracts. In a future article we will further explain the derivation of this
type of 'perpetual' contract concept (Ref: Commodities, Mar 83, p. 72). From these 14 contracts we are
able to filter down to 5 or 6 that appear to be in 'advantageous trading positions'.