Quote from slacker:
Wishing you a happy holidays and many years to go...
I wish I could have asked the lateral question better...
I understand most of the 8 rules Ok, Ftt to Ftt Ok. The lateral question is where OODA and MADA break down...
In MADA it is as described.
OODA is different. OO is observe and orient. This is the beginning of a system (most are not anyway)breaking down. Marketsurfer explains that people who do not use bar-by bar often see a thing a called a setup.
If a setup is seen, then Kelly ,etc kicks in for these people and so does using very complex maths to do stuff NOT handled by non- granularity type maths. Actual answers begin to show up with numbers NOT included in the markets. A person gets an answer that cannot ever happen is a sweet example.
So CW uses a thing where research has gotten all the things that can be hoped for. All setups that are thus envisioned do not always have the same resulting profitable answer.
In CW there is an invention called a STOP. In making money with 100% certainty, a STOP is not part of the posited result.
It may, in fact be true, that a setup does not have a guarranteed profit result. Wikipedia is not a resource for getting definitions. It is an opinion polling iterative refinement system. Probably stops and setups are defined there for the CW type OODA usuers.
The D of OODA is a bet placing schema. For some reson there is a belief system in CW and OODA where people do something called management on betting and they have management classifications. One is called risk management.
It may come from the idea that money is a commodity (work horse) and horses have work hours. Money is NOT a commodity if it is associated with risk.
Look at the CDS's. and insurance offerred by AIG. In he financial industry betting is insurred by insurance companies..
Bundling mortgages and slicing tranches were inventions. And these inventions were insured more than once per unit.
Housing stock that is mortgaged is going through a 20% reduction in the use of mortgages. The the group of people who have white cohorts is no longer growing in any way. As the US grows in population it is an immigrant addition exclusively. There are no rules for this. Mortgages sought are sought 80% of the time by non whites. This is true of first time mortgages and up grade mortgages.
The financial industry is not doing inventions to consume OPM. With fees shinking on inventions that no longer work and have no regulatory rules, it is possible that OO and D and then seeing how it turns out for A, may have breakdown added risk a all points in the process in the future.
I am looking forward to seing the lobbying structure of the future for the financial industry in the US and in foreign operations.
At this point there is a cognitive part nd and a below the neck part of the financial industry. The failure of the moral and ethical basis of the Financial industry has consequences. Also, in the future there could be regulation and even enforcement.
So my arrangment with the CW type regulators is to not have them send me citations anymore. the plan is that when they get data to cite me, I will send them the same response as they had to accept before and then withdraw the citation.
MADA looks like insider trading as an SEC profile. This means there are no OODA risks nor any OODA risk mangement for breakdowns. See more on MADA risk below.
When a SCT trader reaches a lateral, at what time in the lateral does a reversal take place?
Good followup. As a lateral unfolds, you relax. you see bar 3. then you have 20 more minutes uyntil bar 7. During that time the price change is within the shadow bar's volatility, so no money can be lost or made. A lot of OODA bets are being make and alot of OODA bets are being concluded by side lining. Most of all you see impossible OODA trades being put on the book out of ignorance of market capacity and market velocity. Ho Hum.
At bar 7 you hustle to annotate completed bars. If there are EE's you note the sentiment change. you then prepare to do wash trades to stay on the correct side of the market.
What are the distributions of the possible EE's during a lateral. Give thought to three bar EE's and 4 bar EE's and a couple of common 5 bar EE's if it is midday.
If you are in a given trade and then a latral appears, you want an even number of EE's so you are still on the correct side for the next EE which is AFTER the BO of the lateral. The bar 1 of the lateral is the volatility of the MARKET also.
In this last message it is not until the next bar closes outside of the lateral. Correct? That could get expensive if you were a SCT trader...
Pretend you are taking the full offer of the market. This instills an attitude relative to only doing cognitive work to trade and dumping the below the neck stuff. A result is that you get emotions from support, comfort and confidence.
If, under any circumstances, you are getting tinges of the CW emotional set, then you are headed into a set of syndromes that are not part of taking the full offer of the market. In SCT, you know you know all of the time. Tinges of CW emotions tell you loud and clear you do NOT know you know.
You only make the full offer each day. All reversals have a zone of 10 or more minutes to execute. During this time, you could have a smoke on the front sidewalk.
In SCT you have to park at certain contract levels occasionally. It is difficult to handle getting rich too fast. I measure sports coats in multiples of 50 inches of pipe racks. We like to use a room as a closet. When you go from 50 to 100 contracts you have to sit at 100 for a while.
At some point you notice all trading is partial fills. Its is not good to trade blocks bigger than the T&S blocks.
A lateral in MADA is a time to relax. In OODA it is a risk management failure. In MADA you know that you know. In OODA the space between entry and exit has no names at this point in the sophistication of CW and OODA.
In PEP and its applications, everybar is squished into an XB or an XR or you are relaxed in a lateral. Every thing and at all times has a mathematically defined name. PEP and its applications are totally codable in about any APL.
All the best...