Iterative Refinement

[icarus618]

The blind leading the blind. Since time immemorial, uninformed and incompetent people have led others who are similarly incapable, so why should it be different here.

On one of my charts, a line was already drawn from before today that informed me of R when bar 31 hit. You cannot find any such line by looking at today's 5m chart.

Very little is to be gained by sticking to the narrow viewpoint that 5m bars comprise a complete representation of the market at any given time. To be frank, this whole exercise of insisting on massaging 5m bars (often in hindsight) in ever more complex ways in the hope of attaining some kind of ultimate revelation is silly. I do not know why a person who is interested in iteratively refining how he extracts from the market would cling to this view.

The operational types have dropped off this thread presumably to polish their method of extracting, which is the only refining worth anything in trading. With one notable exception (Mr. Black), the ones left here are mostly intellectual types who are merely refining their ability to think themselves learned. If the goal is to learn how to extract for oneself, most of you are learning it wrong and do not know it. Wasting time is the least of your problems. You are foregoing the opportunity to learn correctly.

 

[romanus]

Quote from phineas j. w.:

Romanus,
Not sure about the "Sesame Street" post, I was referring to this spydertrader post:
Phineas,

-----

Spydertrader 07-24-08 08:29 PM

... However, Decreased Volatility with Increased Volume only requires two bars to create its signal. Since we create 'tapes' out of two adjacent bars, this signal for change occurs on the 'tape' level. The other three require three bars and as such form on a Traverse level or higher.

- Spydertrader

I think we are dealing here with two sets of events, which overlap.

Some of tape level signals may be followed by traverse level change. Plenty examples can be found where a traverse ends with an FTT, which provides decreased volatility on increased volume change signal. But not all tape level signals result in traverse level changes. It's a "not all dogs, but some of them are poodles" and "all poodles are dogs" logic type of thing.
One can draw two circles, one called tape level signals, the other - traverse level signals. These circles would overlap, and in the overlap one finds tape level signals followed by traverse level changes.
http://faculty.matcmadison.edu/alehnen/weblogic/venn.gif
blue - tape level
red - traverse level
gray and crosshatched - tape level signals resulting in traverse level changes

 

[romanus]

Quote from icarus618:

... the ones left here are mostly intellectual types who are merely refining their ability to think themselves learned. If the goal is to learn how to extract for oneself, most of you are learning it wrong and do not know it. Wasting time is the least of your problems. You are foregoing the opportunity to learn correctly.

Those are some very harsh words. Nobody had ever accused me of being intelligent before.

 

[ticktrade]

Quote from Jander:

Sorry, I have no idea what you are talking about. We are discussing the 15:20 bar

There were earlier posts asking about the 1205 bar today, thus my response.



I dont know why you are placing emphasis on 10 min chart, gaussian peak heights, etc... We have dumbed this down to just 5 min ES for a reason, to simplify and understand sequencing, which obviously hasnt worked out too well...

Feel free to choose whatever path you like. I'm just sharing what is working for me.
Sounds like you should put me on your ignore list along with tums.

 

[Jander]

Quote from icarus618:

...

Great post. Your direct, to the point comments are shadowed only by your arrogant smugness. Congrats

Not that I disagree with most of your post, it is fairly accurate. But patting yourself on the back for having a resistance line from yesterday on your chart? Werent you the one practicing wash trades for the past few years? Instructing everyone to hold a trade till exit at breakeven no matter how far it goes? Im sure that does wonders for your P&L

In any event, I appreciate the post as it was kind of what I have been thinking for a while now

 

[Jander]

Quote from ticktrade:


Sounds like you should put me on your ignore list along with tums.

Ahh too many feelings get hurt too quickly around here.

I dont have anyone on the ignore list, no need to really. I simply respond to responses to my posts, which will be few and far between. I hope you guys get it figured out, best of luck...

 

[romanus]

Quote from ticktrade:

Dude, take it easy on Tums...

I totally agree. The whole point of learning how to trade these methods is to learn to find the answers on our own. As Mak said, to dwell on AHA!'s. So what if one bar belongs to an area of uncertainty. The remaining 80 perform like a swiss watch. Absolutely no need to freak out. With finer tools one would have already reversed off the DOM/ OTR and relaxed calmly monitoring what must come next.

 

[nkhoi]

Quote from icarus618:

..On one of my charts, a line was already drawn from before today that informed me of R when bar 31 hit. You cannot find any such line by looking at today's 5m chart.

..

the bule line?

 

[icarus618]

Quote from Jander:

Great post. Your direct, to the point comments are shadowed only by your arrogant smugness. Congrats

Not that I disagree with most of your post, it is fairly accurate. But patting yourself on the back for having a resistance line from yesterday on your chart? Werent you the one practicing wash trades for the past few years? Instructing everyone to hold a trade till exit at breakeven no matter how far it goes? Im sure that does wonders for your P&L

In any event, I appreciate the post as it was kind of what I have been thinking for a while now

Thanks for the response. To be more precise, I've been practicing wash trades for at least 5 years. I kept a log in the beginning but no longer. I've probably done a few thousand at least. Even now, every day, I do at least one, usually 2-3, just for the hell of it.

I do recommend taking a tick or two (but not more) on every wash. Exit at breakeven, as you put it, is just fine too.

You do have it right that my instruction to anyone doing the drill is to hold every trade for a wash. It's tough to do for many reasons, as you know.

I have one learner I've been working with a few years off and on. When working together, I do guarantee the capital in the account we're using. Since I'm backing the account with either my money or time, I do insist on my instructions being followed. In June, the learner's account held about $3,300. It is almost $10,000 currently after a few hundred washes. Go figure.

All the best.

 

[icarus618]

Quote from nkhoi:

the bule line?

Show off.