We Welcome System Z!

Today is the first trading day of System Z! It's trading a real money account thanks to my first investor. Yes, it's only $10K, but I'm sure that will change soon....

	04/07/2006		ELECTRONIC NEW ACCOUNT FUNDING		10,000.00		$10,000.00
	04/10/2006		Bought 500 CIEN @ 4.45		-2,230.00		$7,770.00
	04/10/2006		Bought 80 AKAM @ 30.06		-2,409.80		$5,360.20

System Z is an experimental, highly speculative application of my research into behavioral trading. Though it borrows much from System HAG, which will continue to run on a theoretical basis, System Z will have more exposure to market momentum and volatility.

System Z will use the anxiety algorithm to decide entry points of trades. Ideally, each trade will appear to be a "scary" position to a day trader. The best buying opportunities will seem scary even to a more average market participant.

Though most trades will be long equity trades for a few days or less, like System HAG, System Z will also take some longer term positions. For securities that I feel are will become more heavily traded by shorter term speculators, I will be buying small amounts of out-of-the-money call options. This will expose me to the expected increase in volatility, as well as the bullish momentum, while reducing my downside risk.

Updates to follow! All I'll have to do is cut and paste from the trading records!