Quote from AAAintheBeltway:
Whatever happened to Spydertrader's attempts to trade Jack's stock method? It was so complex, it was difficult to follow, but I thought the volume-based concepts made sense. In particular, Jack had an exit trigger based on extreme volume that seemed to work very well.
As i recall, his approach was to watch group of higher beta stocks, wait for them to enter a low volume consolidation phase, then attempt to buy when they confirmed an up move. Not all that different from O'Neil's CANSLIM.
I lost interest in Jack when he started claiming his daytrading students were able to net several times the daily range.
As you saw and read. The stock trading took place over a year. Orders were announced the trades were taken and then the results were posted for over a year. You probably know the annualized take from reading the journal.
3 beta stocks selected in various ways over the years were used.
the one pager gives everyone the formulae for each of the volumes designated: DU, FRV, and Peaking.
One table color coded is a normalized table that can be used for any high beta universe.
O'Neil came upon the scene at some point after 1957 when the system I use was first distributed to others. today you can get your Universe with the click of a button. Stocktables.com uses the EPS and RS percentiles of O'Neil. We both started with little initial capital: he at 500 bucks and I started with 300. there was an odd lot penalty at that time.
In stocks volume leads price by about 1 and 1/2 hours. A nice time advantage. for yearsthe SEC cited me for insider trading simply because of this fact of volume leading price (and which they had to be taught so they could try their best to understand how front running really works. Since they couldn't, they accepted the idea that I could not possible know such a diverse population of information sources. At any rate they ceased and decisted after a few years. And their citations were withdrawn. they did penalize my broker, however. My broker embroidered their coattailing operation and for embroidering MLPF&B was fined.
Stock trading is position trading for me, PVT.
those whom I support in their learning also trade intraday. SCT is what they do. See the one-pager. Commodities indexes are judged by their daily range. their is a common formula. this can be used as a denominator to determine the daily multiple of or the market's offer.
As stated by others here in the past the multiple appraoches 6 commonly. Gaussian distributions of two market variables were also tabulated and presented.
since it is common to enter on the opening bar and stay in the market all day by staying on the correct side of the market, it turns out a multiple of the ATR is a common experience for those doing the drills of learning all of this.
Entry/exit trading is replaced by hold/reversal trading and using one pattern that has a specific unvariying OOE.
Any observer could examine the reasoning involved. It is indisputable as seen on ET over the years.
Asa person takes a look at himself, he usually finds he has absorbed the CW and myths of the markets. They do not erase from the long term memory. These people all have undifferentiated minds as a consequence.
If they were learning to read as they learnedwhat is in their minds for markets, then they would not be able to learn to read.
They can read, however. With respect to learning to read, they always did what they were told.
The same is true for their learning to drive a car. they earned their licenses.
Wealth is how people measure a trader's success. Some people give away money and other give away time. A few give away both.
I use PEP to take money away from Wall Street and so far even the SEC has bitched about how I do it. They think I am an insider trader. What a joke.
the belt person lost interest. this is normal for a CW and myth oriented believer. How could it be any other way? It cannot be any other way when a person has a mind that are the consequence of his beliefs.
Look at Andrew Lo's mind. And people believe him.
Why was the SEC convinced I was a criminal? It may be that they get trined to believe the CW that big money believes.
In trading, the minority rules. The majority are the victims.
In retail, it is believed that most people lose. I believe most people have wrecked their minds permanently.
