Iterative Refinement

S

Spydertrader

As the most recent chapter of The Hershey Methods draws to a close, the journey continues – especially for those striving towards their ultimate goal of consistent profitability. As such, this journal seeks to facilitate the process of Collaborative Iterative Refinement utilizing the Medical School Paradigm of “See One. Do One. Teach One.”

To that end, I want to expand upon past discussions and include Options and Forex, in addition to the Equities and Futures discussions currently underway. For those unfamiliar with the methods under discussion, please review the previous threads listed here:

Journal One – Beginner Equities
Journal Two – Intermediate Equities
Journal Three – Advanced Equities
Journal Four – Futures

In addition, each of the above Journals contains background material which may prove invaluable to the learning process. I recommend a thorough review. Also, for those still trading equities, I posted an explanation of The Final Chartscript in this post.

Although all the methods do contain overlap, I feel it is best to start at the beginning, rather than, struggle through the material. No shortcuts exist. Do yourself a favor and build a strong foundation for success by avoiding the temptation to jump ahead. The market will be waiting for you – irrespective of your level of preparedness. As a result, I continue to recommend an abundance of caution – at every level of your trading education. In addition, everyone learns at a different pace. No need to rush. You have plenty of time. Please use it wisely.

Although I plan to contribute to this Journal on an infrequent basis, everyone should feel free to add to the discussion – posting charts, generating content or posting trades as often as desired.

Along the same line of discussion, I expect everyone to continue the long-standing tradition of respecting the other contributors to the thread. Over the last three years, the discussion has remained relatively flame free providing an environment conducive to learning. I expect that trend to continue throughout this thread as well, and I appreciate everyone’s efforts toward that end. I encourage liberal (and frequent) use of the ET "Ignore" and "Complain" features in an effort to respond to inappropriate commentary. Adherence to the above guidelines should allow for an open and friendly discourse and foster an environment conducive to learning.

Good Journey to you all.

- Spydertrader
 
Thank you Spyder for making the journey possible for some of us in the first place. I know it required tremendous commitment from you and from some star players. I've struggled for several years but now I can finally see the light at the end of the tunnel. What a remarkable year I have had. :D

I intend to keep it simple, in that only price and volume are needed on a 5 minute chart. As Pr0crast said elsewhere, improve on the things that you are good at, I intend to do JUST that.

I would like to come back in 12 months time to report my progress in terms of my success ( $$$). In the meantime, I hope to contribute here I believe the heading of the thread is really fitting.

Thank you Jack and everyone and good trading to all !
:D
 
For the Equities folks, I'll have a revised set of Instructions for use with the Equities version 5.0 Chartscript and Dry Up Scan within a few days or so. Until then, please see my Final Universe Update.

Final Universe Deletions

ENG ESEA FTK JCG LXU MTOX PRXI RATE SFLY

Final Universe Additions

BIDZ GMKT IDCC LKQX TLEO VSE

Final Universe

ANW ASIA ATV BCSI BHS BIDZ BKI BONT BPHX BTJ CALM CHDX CMED CUB DBTK DRYS DSX EGLE EMKR EMS EXM FED FMCN FSTR GAIA GIGM GKK GLNG GMKT GRA GRRF GSAT GSOL HMIN ICOC IDCC IMMR JADE JASO JRJC KMGB LAZ LKQX LPHI LQDT MALL MEA MTH NCMI NFI POZN PTT QMAR RWT SIGM SKX SNCR SNDA SNHY SOLF SSRX STAR TASR TBSI TGIC TLEO TRCR TSL ULTR VDSI VSE VSR XING YTEC

Friday Dry Up

ATV BHS DBTK DRYS DSX EGLE EXM FED FMCN FSTR GIGM GRRF GSAT IDCC IMMR JRJC KMGB LKQX LQDT MEA MTH PTT RWT SKX SNDA SNHY SSRX STAR TASR TBSI TGIC TRCR ULTR VDSI XING
 
Quote from PM:

... I was wondering why you took the long on the 15:10 bar. ...
More...

I think it was a good entry, but the reversal that followed was a little late, and I lost 1.25 point. I annotated the snapshots with what I probably looked at the time. Click on the attachment links to see the snapshots full size.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1735450 width=512>
 

Attachments

Look how each one of the charts, and each element of it, brings something to the 15:25 VE turning point's monitoring, decision, anticipation, and confirmation.

It's great if you need only the 5 min es to make your decisions (I assume that you plan following the price movement characteristics intrabar). But why not to sweep all the available tools at the appropriate moment: coarse, medium, fine?

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1735501 width=512>
Quote from callmate:

... I intend to keep it simple, in that only price and volume are needed on a 5 minute chart. As Pr0crast said elsewhere, improve on the things that you are good at, I intend to do JUST that. ...
More...
 

Attachments

Here is a daily chart of the ES. I'll be looking for a FTT in the next ? days and the subsequent point 3 after that. I find that knowing where you are in the big picture (daily charts) helps keep your perspective. Have a nice day! :p
 

Attachments

I have to say the closing of the futures journal has left me a little sad; being that it had become such a large part in my everyday life for the past 6 months. I cannot express enough my continued gratitude to Spyder and the whole crew for their continued efforts to bring the JHM to the unwashed masses. It is not a crutch I seek, but an opportunity to refine my current knowledge base.

With the end of the Journal, I believe for me it is only fitting to start from it's beginning. In this spirit I believe it is worth restating what was said in the earliest parts of the futures Journal that for me was always a secondary (or even tertiary) consideration giving way to a bar to bar analysis above all else. Sometimes even intrabar :D.

Spyder wrote:
Once you have the dominant trends in place, you then move onto looking for the traverses. I use red and green lines for the traverses (as seen on the chart). I cannot stress enough the importance of knowing where price sits with respect to the dominant trends. Without knowing where price falls within these trends, one cannot locate the FTT's (Failure to Traverse) - they key to trading the Hershey Methodology profitably.

Simple...yes, but very powerful stuff.
 
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