Quote from SK0:
Hi Jack.
I have looked at the Universe spreadsheet that you posted recently. The first symbol in the spreadsheet is ABC with Rank 0.97, Duration 7, and Frequency 15.
Am I correct to say that the average "long" half-cycle of ABC is 6.79% (= 0.97 x 7%)?
If I understand correctly, one of the key criterion of candidates to be in a PVT universe is to have at least 20% moves of "long" half-cycle in the past.
What is frequency?
TIA
Rank means the % per day during the "long" half cycle hold. Duration is the length of he dold in days. Frequency is the number of days between each first day of a hold.
All stocks come from sorts using a quality Assurance criteria. I it found in the PVT journal that as conducted a few years back. In that journal over a year's trades were coalled in advance including entries and exits.
the criteria includes filling in the Inial analysis sheet (most people now use the Excel version. A lot of the columns are determined by doing and periodically updating the IAS. The rank, duration and frequency and last first date come from the IAS. So does the Trade date labelled DATE. This is the date the next trade begins.
Most people fill in their weekly plans on Sunday; it is called a batting order and contains the "owned" stocks and their exit dates for each capital stream Next stock to be entred is listed second in the batting order. The period of ownship is also noted. A third stock is also listed in a similar way.
Most people begin with four streams of capital and gradually work up to 12 streams each which has an upper limit of 100,000 shares.
Years ago, there was a third party review of one such trade. 31 partial fills were equired for the exit since the trading blocks on the T&S were about 3,000 shars max. The net per share was 17 points
after a person reaches the limit of 12 streams @ 100K shares he sweeps profits into th Sector Stock Rotation application of the Pool Extraction Paradigm.
Usually capital for PVT trading I built with cycle provifts and sweeping SCT profits, weekly, into the PVT streams.
I traded more than 12 streams when I traded accounts on a POA arrangament that did not exceed the NFA section 206 requirements.
All trading uses the B2B 2R 2B pattern for long trading. For SCT trading both the long and short patterns are used.
To trade stocks and see the pattern a daily is used for the IAS, a 30 minute is used to monitor the end of the R2R 2B 2R which precedes the B2B 2R 2B entry, hold and exit. For carving the entries and exits in collaboration with the "unusual volume leading indicator chart, the 5 mon time frame is used to carve the entires and exits on a partial fill basis once holds exceed the normal T&S block limitis.
I Tucson at any given time we have noobies being taught by recent learners and recent learners teaming with longer more experienced traders.
There are offices and there are web real time conferencing going on for various purposes. Most experienced traders are also running and/or supporting 501 (c) (3)'s. There are also regular meetings.
As you saw stonedtrader could not read the Excel sheet for various reasons of his choosing. It was very humorous to me to read his mistaken commentary.
PVT's related Sharpe Ratio of over 60 is not something most CW oriented traders can appreciate; they usually announce their reasons for their comprehension failures in this arena as well.
How a Unverse provides a continuing reliable and repeating stream of trading opportunities is way beyond the realm of CW oriented understanding.
