Jack Hershey's trading methods

In my opinion you could apply Jack's channels, prv, indicator set, FTT, gaussians, and other concepts on any fractal. There are just a few specifics for futures, and for equities.

For intraday equity trading you probably have to pay more attention to slippage (liquidity). I would experiment with setups / entries on the 30/5 fractals, or similar.

Have you already tried it?
Quote from foible:

I've seen a lot of posts relating to Jack's strategies for futures and for 6-8 day equities trades, but not much else. Does anyone know if Jack has written much on trading equities intraday? I believe he called this the "drift" period, but haven't been able to find anything more.

thanks.
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That was my thought too, and I covered it today about 15 minutes before closing:

<img src =http://www.elitetrader.com/vb/attachment.php?s=&postid=1082616>
Quote from chapper:

i figured this thread would have gotten more attention.... so bump

yo, cmns you cover that BA short... it is looking really good still..

Cheers
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Quote from cnms2:

In my opinion you could apply Jack's channels, prv, indicator set, FTT, gaussians, and other concepts on any fractal. There are just a few specifics for futures, and for equities.
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I've been reading a lot of his posts, and especially in the discussion of futures, he is using so many unknown terms and acronyms that I get totally lost. For instance, what is a gausian or FTT?

For intraday equity trading you probably have to pay more attention to slippage (liquidity). I would experiment with setups / entries on the 30/5 fractals, or similar.

Have you already tried it?
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I've just started trying it out. Took a look back at some charts and they seemed to have potential, but you never know till you try it.

Today, I made a watch list of about a dozen different stocks in different industries and would cycle through them, checking the indicators on the 5 minute chart. I'm not convinced that volume comes through intraday as across days, as there is such strong fluctuation based on the time of day (e.g.: lunch) rather than price.

That said, I used his 'Bruno R' setup, looking for longs & shorts and ended up taking three trades in GLW, VLO and TIE. GLW was a .03 loser, VLO a .50 winner and TIE a .75 winner. VLO and TIE should have been bigger - I exited without any signals but paniced, seeing such large profits.

So based on a few trades, and visual inspection going back a week, it seems possible. However you don't have to be a genius to make money going short in VLO or TIE these days. I want to reserve judgement until after I've tried this over a wider range of stocks and conditions.

I was hoping to hear from others' experience with this, to see if this is a flash in the pan, or something sustainable.
 
For a nice explanation of interpreting FTTs (failure to complete a traverse; traverse is the price crossing from the right line of the channel to its left line; right line of the channel is the line that includes points 1 and 3, left line is the line that includes point 2) and Gaussians (volume increase / decrease cycles) check Jack's recent post.

This is a Glossary.

Also check Spydertrader's Journal.
Quote from foible:

I've been reading a lot of his posts, and especially in the discussion of futures, he is using so many unknown terms and acronyms that I get totally lost. For instance, what is a gausian or FTT? ...
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Quote from cnms2:

This is a Glossary.
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A Jack Hershey glossary, that's too funny. I guess I'm not the only one to feel like he's talking a different language :)


Thanks for the links, cnms2. I'm slowly working through the MSN documents and I think this will help a lot.
 
It's up to you, but I think you can find all you need on various ET threads. Search for posts by Hershey, Grob 109 and bubba7. There are also a lot of great posts by Spydertrader, makosgu, aweissen, icarus618, achilles28, easyrider, and others.

If you're in a hurry start with Spaydertrader's two journals. You'll find clear explanations, debates, contributions, useful links and many real-time short term equity trading examples.

Gradually the puzzle will come together.
Quote from foible:

A Jack Hershey glossary, that's too funny. I guess I'm not the only one to feel like he's talking a different language :)


Thanks for the links, cnms2. I'm slowly working through the MSN documents and I think this will help a lot.
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1) I try to draw the channels through the ends of the bars, but it doesn't always work this way. The price action can be seen as the sum of the supply / demand signal, and of the various noise sources on several fractals (news, market discontinuities, etc.). Sometimes the price line will briefly breach a channel line then return inside: a noise spike . I don't see the channel lines as absolute limits, but more like guidelines, or significant zones, that border the past, present and near future price action.

2) To draw a channel you need three points. Sometimes when I think that a new channel might start developing, I draw its RTL (right trend line) parallel to some of the previous ones in the same direction. More often than not the new channels will be nearly parallel to others drawn on the same fractal.

If my reply didn't address your questions' specifics please rephrase.
Quote from billp:

Congrats on your success.

Appreciate a bit of advise here if you are willing. Thanks

1) Noticed from the charts, that you do not necessarily draw channels which connect the tip of the candles (ie top/bottom of candle). Rather my impression is that you draw the channels which touches the most points (so the channel usually ends up connecting the open/close of candle).

2) In the charts that you attached here, I noticed a downward red channel. Is this channel drawn in only when you notice the FTT occurin?. That means that will be the new channel?

TIA
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If you mean that you're expecting for the market to turn back up, I don't worry about it. I try to keep my expectations and hopes in check, and look objectively at what unfolds.
  • <font class=quo>Quote from cnms2:

    Me neither.

    On the other hand, I try to look at each stock case objectively, unbiased. I try to keep my hopes in check in order not to blur the picture, and to take the signals as they come. When I notice that I'm wrong I adjust my position accordingly, not jumping the gun, but not to delaying it either. :) </font>

At the beginning of today I had five short positions. By the end of today I closed four of them, based on the signals I read.
Quote from 4XIS4U:

Hummm... hope you're not too late for shorts....
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