Quote from Index Maximus:
Hi RoughTrader,
Grob109 = Jack Hershey
here is a programmable form of trading which hershey devised:
quote grob109:
Description:
Indicators define rockets. The indicator values are determined by considering one clear major factor. That is: building wealth at no risk. All the indicators are designed for integration over a spectrum of fractals. Concurrently they are designed for the skill level of the user. Beginners need the highest protection against failure and secondly losses. The other side of the coin provides two central trader themes that are absolute requirements continuing reinforcing success and continuing display of the NLP pictures that lay the foundation consistent decision making excellence
Rockets appear daily. They are fast paced trends. Beginners enter rockets after the FBO period. The digits 13 and 14 in the indicators assure this. Making the slow line on the Stochastic pass out side the 20/80 band further assures we are past FBO. Requiring a minimum money velocity at the inception of the trend, assures that the physics concept of momentum is at play. The design of MACD as a 5, 13, 6 configuration assures this and one other significant consideration: preventing indicator bridging. The original designer defaults were done before PCâs and the advent of PCâs significantly affected market operations. This shift caused most indicators to bridge.
Rocketeers are kept in trades until risk reappears. You see that the right channel line BO and the failure of the slow stochastic are concurrent.
I have done the illustration in a manner that rocketeers can see how icebergers are trading as well. There are four levels of iceberging. Each includes more risk and more profits.
Rocketeers enter on B and exit on C. They see the trend begin and then the indicators fall in place. MACD, then volume, then fast and slow line of the slow stochastic. Entry at 1046.3. The stochastic âentwinesâ until C. Exit at about 1040.2. Profit 6.1 less costs.
The four levels of Icebergers exist. Level IV enters on 50% crossover with divergence of the fast stochastic lines. See A. This is earlier and higher risk. Level Iâs enter as do racketeers. Levels II and III enter using the rocket rules on the fast stochastic (5, 2, 3).
Levels I and II exit at E when the fast stochastic comes out the other side of the 20/80. Level IIâs reverse at E into a long trade. Level IVâs reverse at D on the 50% where lines are divergent.
Point x shows a successful 50% cross over with divergence that fails. This affects only level IVâs; they go long on the divergence and reverse back into short as the divergence fails (convergence and x=over sequence). See FR.
EXECUTION
The following text is oriented to execution. Execution has four parts:
Data Gathering to assure you have considered all factors and to assure you have associated the go/no go criteria with each and every factor. This absolutely destroys the NLP picture of using signals to trade; concurrently it builds the picture that the total salient market conditions must be considered at all times.
Analysis sorts out and combines all aspects of the data set to obtain a âgoâ if and only if, the criteria is met. This is an intellectual process.
Decision making. Decisions are based upon beliefs. Beginners have an awesome difficulty with which to deal. Their beliefs come from the past and are founded on all segments of their past lives. The Tony Robbins stuff can create quite a disparity just as parental Rich Dad, Poor Dad factors can. Parents also convey as âmoney as religionâ themes of ethics and morals. Beginners have to create their personal NLP pictures for investing and trading. First, this strategy provides repeated provisional pictures based on rational logic. Repeated success allows the new provisional pictures to hold more sway in the personâs make up. A process is unfolding. By setting holistic pervasive criteria for trading rockets, the traders learns to share responsibility with the market and he learns to not step over the line and usurp responsibilities accorded only to the market. Pictures infill and become comprehensive enough to assure a routine of extracting the capital offered and available form the market. This foundation cannot be eroded. Lastly, one final initial picture is built as a beginner. Initial capital is removed when the beginner has made 120 points in the ES. This is a tripling of the 2000 nominal margin for one contract, the maximum # of contracts tradable in the beginner mode.
Action results with entries and exits. Using the results of a decision based upon the congruence of beliefs and analysis results, causes trading actions. They are swift and decisive and correct.
A. Data Gathering
Price: No Criteria
Volume: Band B (10 to 12K) or better.
MACD: The histogram has to show a divergence of = or > than the absolute value of 0.4. This means, for long trends +0.4 and for short trends -0.4. This value is an initiating value only. It does not have to be maintained nor does itâs absence dictate an exit.
Slow Stochastic (14, 1, 3) Fast and slow lines out side the 20/80. Variations: use 25/75, use end of bar only measurements. Both variations are higher risk.
Other Formations: Any prior formations may exist. Rockets form channels; use the channel report to carry out any of all the channel possibilities.
B. Analysis
KEY ELEMENT: All criteria of data gathering must be met. They are achieved in a sequence that is not predetermined. The last one arriving in time gates the decision and action for entry.
Monitoring continues. During monitoring the exit is determined by the slow stochastic. The least risk exit occurs when the fast line goes inside 20/80. Any continuation of the hold on the rocket is terminated when the slow line goes inside the 20/80. Variations: use end of bar measurements.
C. NLP Decision Making
A âgoâ from analysis is reinforced by NLP pictures saying that rockets are valid for making money using the entry and exit rules. The market provides the circumstance through measurements of indicators.
Action
Beginner: Come off sidelines and trade one contract.
Intermediates: Confirm your iceberg entry and determine that the iceberg is now operating at low risk.
SCT. Follow SCT rules as superceding rocket rules.
This setup precedes SCT.
Maybe you can see what happens when you run this one mechanically.
Awesome, thanks for the post. I'll dig into this some more. Right now I am making very good progress coding tapes and channels. It's actually not straight-forward as the channels need to be adjusted depending on how the tape moves.
RoughTrader
