Quote from FutTrd:
Okay before someone like Steve46 or Bitstream or Cheese rip this thread to pieces here are my thoughts.
Imagine an alien race floating in orbit and looking at humans trade stocks futures forex etc. And lets say one of them decides to take a detailed look at the whole thing, would it be really so bizarre that a creature of 5000 IQ would be able to take into account accurately all the news and probability assessment of how people react to news and all the patterns that repeat themselves to any reasonable degree.
Wouldnât such a creature be able to come up with system thatâs 95% accurate. In my opinion yes that would be possible and 95% accuracy is for all intents and purposes Holy Grail.
So what I am saying here ladies and Gents, we are simply not smart enough to process all the information and âfigure out the holy grailâ, but it is there.
Okay let the name calling and shredding begin. 
In the practical world of trading, it is not necessary to get more data than you need to be extremely successful.
The acheivable goal, on the otherhand, relates to knowing when you have a "sufficient" supply of data sets to successfuly use a strategy that that keeps you in a position to take out of the market what is offered.
The cornerstone of every high peformance (effective and efficient) trader is to be on the right side of the market at all times.
When the trader is switching sides he, concurrently, takes profits.
There is no predicting involved nor are there any probabilities with respect to being on the right side of the market. As Eckhardt concluded there are "rights" involved in the maths of dealing with the markets.
He saw that using as little data as posible was important (he went overboard, though) and the data had a specific form that he call "right". He meant by this, as any smart alein can see and Cash can't) that good data was either there or not there. It was "right" when it was there. This is a Boolean concept and it is the basis of almost all of computer operations and performance. Better computers do this stuff very fast.
For a beginner to stay on the right side of the market is not possible. For an intermediate to stay on the right side of the market is not possible either. Aliens can stay on the right side of he market, however. They "know" to stay there and they also know when to change sides ahead of time and they act to change sides when the time is right according to WHEN THE MARKET COMES UP WITH A DATA SET FILLED WITH ALL "RIGHTS".
An expert has all of this down cold and he does it all of the time during the day. Anyone can fill in a log of the actions required during the day to always be on the right side of the market. All that is needed is the correct format on the log's column's and rows.
Aliens can make up logs very easily simply because they can figure out what to put in as headers for the columns. They would arrange the columns so that a minimum of eye movements are required to fill in the logs. The combinations of entries repeat over and over.
Personally I fill in my log with several rows in between the next four or five events that will be coming up ahead of time. Where I fill such info in is in the middle of the sheet just to the right of the data collection columns. That way I know ahead of time what is going to be coming up. I especially write in ahead of time the items where I will be changing sides(I take profits here).
I have another column next to this where I put in my expected profit level (I use four levels) for that time of day of taking profits.
I know on page one of the log that I will have banked the then existing H-L of the day and that I will be so many bars into the 81 bar day.
On page two I start making more than the H-L of the day and the level of profits has changed to the second best level maybe.
Any alien hanging with me would be deciding to set up a business to give my notes to others as soon as I write them. So do I. I use skype for this or gotomeeting or I would use the ET chat if some people weren't there all the time. Sometimes I record a narrative or video if there is something I want to give to others.
The day comes to an end on page 5 og the log sheets. I also have other pages for perodic debriefing and I print charts of parts of the day. I wind up with about 20 pages and for income I do about 3 times the H-L (which has usually gotten larger than it was on page one)
The strategy to stay on the right side of the market results in 20 to 40 actions a day. The data sets involve 13 items total. 7 items on YM and 6 on ES. The YM does what the ES does before the ES does it so I just trade the ES after I see it happen on the YM.
What is "right" (there or not there more or less) for me is (from left to right): Channel, Formation, Volume (one of five levels) Gaussian, Fast STOCH (5,2,3), Slow STOCH (5,14,3) and MACD (5,13,6). that was for YM. For ES I do not have a Gaussian. There is a column for stretch/squeeze comparison between the indu and the ym (sqeeze means a short will start in 30 seconds and thretch will start a long in 30 seconds.
All my volume bars have bouncing balls on them so I know that where the ball is is where the bar will end; the gap allows me to see the amount of any surge during the bar.
I also run tick charts with volume and the DOM on five levels as a fine detail to eek out he final ticks of each move after I have been told that the move is ending.
The log records the trades on the near right and at full right I tab the # of contracts and points per contract and gross points and gross cumulative points. If I have and odd number of contracts (25) running then I do not do the cumm points until I have lulls in the routine of monitoring, analysis, decision making and taking action. I do about 20 pages a day for the three ring binder. All aliens need three ring binders, I think.
I mentor a lot and usually a person watching me trade gets tired. Since I am 73 and experienced, I do not expect people to keep up with me for a whole day. Usually when I narrate for them I keep a few minutes ahead which allows them to keep focussed, etc. Most of the time they punch the keys for trades and annotate the charts (see channel and formation columns.) I have bad arthritis.
There are a lot of aliens on ET but they mostly aren't very bright and they appear to be too oyung, still, to start learning about anything. They have large mouths and shut eyes.
