Quote from toolazy:
Jack, one more question if you do not mind about how did you derive mapping table :
Presume you knew about market sequences before you explicitly written down rules as you can process them subsecond.
Did you take reasonably large sample of situations for each mapping item and then try to explain it by price/volume combination only? To do that, you had to create 5 groups, one for each OOE and this covers now all angles?
I know I spell Johari wrongly and I also spell Mondrian wrongly; these are just tracking devices.
Mapping the "c" turns onto the Modrian Table was a mathematical deduction exercise.
By just using 8 panels I could state the "differentiating" characteristic of turns where the dominant changed. A turn where there is a dominant change defines the event where extreme amounts of money is made. At maximum shares of stock (100,000 for me) I have done a turn that netted 17 points per share in the 28 dollar per share exit range. (11 dollar inital cost per share range).
The Modrian table has a skeleton or framework. I combined two derived premises to build it.
1. I included each type of trend as Sets A through D.
2. separately, I included routine turns of the system AND the failsafe instrument system for preventing any losses.
Crossing 4 with 2 yields 8 panels. This is an invincable and powerful protective device.
Next I applied the OOE principle to achieve "knowing that I know" in advance as NOW is monitored and analyzed. I believe "anticipation" is the best tool for instilling the replacements for the CW based emotions of fear, anxiety and anger. Here you see the use of n-1 and n columns in each trend type. you also see within the trend type the n-1 and n of the turns in that type of trend.
Because a trend ends with a "c" turn for all types of trends, you deduce the four types of trends:
1. c to c,
2. c to a to c,
3 the normal trend: C to a to b to c, and
4. the drift trend: c to (a to b) to (a to b) to c.
By putting an n-1 column in the map, it is possible to achieve a form of differentiation by having a kind of "context". Lo, Brandt and Aronson ommitted context in their work so the work failed.
In effect, I spread out c turns over the types of trends and I also rigidly set in place a context for differentiating types of c turns.
What is true about End Effects is that any End Effect can play any role, i.e., any turn type.
So I set up the table and then I filled in the table's ingredients.
In trading, it is possible to make each experience purposeful. I did that informally. As a consequence I began to make money in my account from the beginning of setting it up. I ploughed 50% of my income into the account as well. By 40 days into the learning process I had been making money the second half of that time period. Before that I was just learning purposefully. I never had to try to erase anything I learned. I began with channel trading at a time when a person had to pencil his own charts. I had to ink the blank master chart as well. This meant I had to deal with each and every detail. I knew each time when I made a mistake since I did so much work. You never make any mistakes when you pencil your own graphs and annotate the channels. This is a description of working on SEQUENCES.
I got formal feedback. My broker was telling me about his other clients who were coattail trading me. then he told me about other brokers who were coatailing with their clients. So my money making was enhanced by others "pushing " my trades.
My trading breakthrough came,for me, when I got lazy with volume. I stopped drawing bars and just did significant figures in the boxes. As did Darvas, we both discovered an oder of magnitude change in volume caused price to be affected.
So voila, I had it made for the rest of my life. Later I made the work of Dodd and Granville explicit in paradigm theory.
Because of a lot of things, I was recognized globally as a problem solver. This cutting edge work, kept me sharp and on point in many ways. I may have grown what became recognized as a gift.
I also trekked in the wilderness and lived off the land from desert to tundra. I learned to function medically in formal trauma and in very remote areas under very difficult situations in which I found others.
My samples are excessive by statisticians standards. I keep binders in two forms: chronologically and contextually. Every piece of the market's system of operating is named.
In science back checking is done in a deductive process. As science builds its (or a field) field, it begins with the most evidence and takes the evidence apart. Then all the pieces are used to build the whole from a foundation. I ask others to repeat this process.
Usualy a person will not take out a sheet of paper and draw a single piece. Society and culture make this impossible today. Non US traders still have this ability, however.
I have built a heirarchy from the elements of the market. granularity afforded me this opportunity.
10 price pieces exist. 11 volume pieces exist.
I began in 1957 and RDBMS were first created in 1970 0r thereabouts. So I had a good headstart.
Relativity applies to the market system. BUT counterintuitively all trends must be monitored and analyzed independenetly of each other.
The great fork in the road occurred and Bayesian stuff took control and makes markets so simple to BEAT by NOT using any of that stuff. Science has to be used instead.
So I use the Scientific Method.
the market dictates that Boolean algebra be used. Granularity of variables makes all the few pieces easy to differentiate.
Thus, a relative database management system appears.
By finding the smallest parts you begin to differentiate with meaning and you produce definitions.
Price change is how money is made. So the pieces are assembled with one mission: making money systemically.
fortunately data can be used in clusters. The best type is not used presently but it will be in 5 to 10 years.
I group parcels by time period AND by profile. The OTR profile is best for carving extreme profits.
As a compromise, I use 5 minute bars. I operate in the 10 to 100 millisecond range so I have plenty of time compared to the data yield of a 5 minute bar.
My sample in use currently covers 81 bars a day for several years. The data is formalized into the pieces and combinations of the pieces have names.
A spectrum results. All of the pieces and their combinations are found in seven sheets. The Modrian Table shows the reversal turns in an n-1, n context. As expected, it is a simple finite list.
To trade, a person goes from general to specific. this scientific set of shells leads to knowing that you know in a total context all of the time. In the systemic operation of the market there are no flaws, no anomalies and no noise. If an observer is seeing these things, then he is still on a path that has not been completed as yet.
Good luck!
