Mental Ceilings ...Lessons from Jack

Quote from Scientist:



It seems you are way ahead of me in that aspect. Continuous trading, yes - but seamless? I mean, can you be in the market at ALL times? No matter what is happening?

This doesn't seem realistic, although I might be limited in my thinking. Do you have a set of strategies to approach any kind of market continuation? What kind of market situation would jeopardize your trading approach? How would you react to spikes, for example? They probably would be outside your matrix and continuation approach, right?

What do you consider to be the weaknesses of your approach to the markets? If you are confident, knowledgeable and honest about your approach, you will clearly know the strengths and weaknesses of it. I would appreciate your elaboration.

Many Thanks,
~The Scientist
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Thank you for your comments. There are many people like me and the collection of strategies have many over laps. I was going to parse theabove but just making a sucsinct reply may be better.

I usually just subtend posts made by people who are getting clues and who are seeking as in the parable of the sower. You can see there four methods are discussed and the workable one involves the unique aspect of preparing the soil.

I take that literally too.

When there is no trend, people do not remain in the market; conversely, you can always find a trend in a futures index market.

As I expand your vision and viewpoints, you will see this.

ES may be considered on all of the seven fractals. you see that any one of the SCT methods can be applied to nearly all of them. Skip the 5 min today Oh a BO will come through. Like now...be right back.
 
Quote from bubba7:



This was too long two halves coming.

First one

Thank you for your comments. There are many people like me and the collection of their SCT strategies have many overlaps. I was going to parse the above but just making a succinct reply may be better.

I post by subtending other's posts. Such posts that are made by people who are getting clues and who are seeking as in the parable of the sower. You can see that four sowing methods are discussed and the workable one involves the unique aspect of preparing the soil.

I take that literally too.

When there is no trend, people do not remain in the market; conversely, you can always find a trend in a futures index market.

As I expand your vision and viewpoints, you will see this.

ES may be considered on all of the seven fractals. You see that any one of the SCT methods can be applied to nearly all of the fractals. Skip the 5 min today Oh a BO will come through. Like now...be right back.
More...

It seems you are way ahead of me in that aspect. Continuous trading, yes - but seamless? I mean, can you be in the market at ALL times? No matter what is happening?

This doesn't seem realistic, although I might be limited in my thinking. Do you have a set of strategies to approach any kind of market continuation? What kind of market situation would jeopardize your trading approach? How would you react to spikes, for example? They probably would be outside your matrix and continuation approach, right?

What do you consider to be the weaknesses of your approach to the markets? If you are confident, knowledgeable and honest about your approach, you will clearly know the strengths and weaknesses of it. I would appreciate your elaboration.

To continue........

Now you see trends are on most fractals. You see that the trends overlap by being subsets of each other.

My vertical axis for my market matrix contains a row of cells of market operating points for each fractal. This is powerful. Because I promulgate the thesis that each operating point is a zone and has FA characteriestics, then, I can state that each zone may be traded independantly just like a given stock (with it's individual FA)is traded in a potfolio of stocks by using financial money management and risk management precepts.

You have that down.

This means any ES trader has two levels of simultaneous opportunity: his SCT opportunity and the fractal array of opportunity where, on each row, there is at least one operating point in effect with it's FA characteristics.

This is elegant to say the least.

I have two brothers, and we all have made discoveries in different fields. Once at Thankgiving our dad had returned from the Pacific where he corrdinated setting off and monitoring the first Atomic bomb in the Van Allen belts.(BTL project) The projection was a 20 minute disturbance in the belts which turned out to be 100 years approx. He was in a discovery funk and we were all kind of excited about the refinement of thinking things through.

If you can recognize that a market of the stucture of ES has a set of cells in a defing matrix, then you get to do FA on all cells in a parallel way to a stock in a stock market. People who say bullshit about this can't, of course and they don't do anything.

You will recognize this FA aspect and that cells are there and have identies. How could they not?


Fractal A (daily Chart) Trades quarterly roll overs from beginning to end with some capital; do 15% arbitrarily with SCT. You are in the 6th trade within a 50 pont lateral channel slaloming. This is a 300 point per quarter pulldown. That is easy to see.

We move ahead to another indepentant money making oppotunity in ES using the same supply of capital.

Fractal B (60 min chart) Put another 15% of capital into this thought. Drop down so you can see the 25 point channels that traversed the above rollover fractal six times so far. You pull down about 20 to 25 points on 3 to 5 trades per leg. Thee legs are traversing the long term fractal. The current leg is 25 points and rolling and it is 6 days long. we see 6 of these legs with 3 to 5 trades in this roll over period(a Quarter.) 4 (3 to 5) times 6 (per quartr) times 20 (the traverse)= 480 points. this is more than the 300 in fractal A. But we cqn add them together to get 780 in slow money making. I call this 3100 points a year of slooooow money making. I guess you know where I'm headed by now.


Fractal N (5 min) Let put another 15% into this fractal. Now I will turn this post up side down and go to the fastest trading fractal which is intraday. We do three kinds of trades here. I pointed out to Candlebaby that there was a 62 ranked H/L day that netted 25.6 points that day doing SCT rockets, ice bergs and slaloming.

There is another person in this thread who is dealing with gaps and interday volatility. Assign a fractal row to him between Fractal B and Fractal N. He is an ace. He is not edging on the discontinuities with the matrix he uses and developed years ago with related posts to my work way back then. get it that he has severalconcurrent possible operating points because he has several rows. Okay you get it. Lets put another 15% in this end effectspart of the matrix.

We have at least 60% of capital in four FA zones now. We know there are others and I just didn't spell them out.


Potfolio time. You get it that you can use SCT on several activated FA's where at least one a row exists. (I will not go deeper at this point)
 
Ugh I will go into it for a sec. Imagine examining adjacency of cells. Say that many cells in a row exist. If the row is long, then activity in one place kills activity nearby. How far away do you have to go to get to immunity. (this is the four color map problem). Go there.

I have proven that the operating point of the market does not jump it migrates. You now have before you a "wave" effect on rows. With long row and immunity caused by low proximity you get waves rolling along where more than one wave is possible, consequently if you use immunity tests for isolation of FA's you can "populate" the matrix not only horizontally but vertically.

Now you see that the analysis is devoted to optimizing density and having a retainment of FA based independant investments to max a portfolio.

That completes the warm up drill.

Now we look at what to do with the rest of the capital. we apply it based upon risk and money velocity. The hihest money velo0cities are the furthest from marginal money making considerations. So we "double down" using a scale of crossover risks.

By now you get a picture of me. I am a person who walks through war rooms and upgrades the resolution activity at an optimum frequency. I had shepards to take care of getting me to the place I needed to be.

My pace, is 250 pages per day typed double spaced and available for review in 24 hours pre blue lined for iterative review in one hour flat as the wake up drill to start the day.

Once you have app of cap* down you turn to the real marginal improvement strategies.

You need to focus primarily on retreiving underperforming capital. (If I ever do a stock portfolio here, I will simplify this to an individual's performance level for doing it in the evening once a day.)

Essentially we broke through the Edge syndrome into SCT. Then we went to the operating point matrix to discover the parallel to a stock portfolio based upon FA analysis. We found that the ES operating points were susceptable to FA analysis.

We found the market operating point migrates (lol this is a nobel in itself and totally fucks up more than half the macro research ever done).

By seeing the fractal based matrix rows and determining they are long, we got to see,in effect wave movement and that more than one sufficiently isolated (risk independant) wave can be seen in any row. We advanced the idea of populating the matrix to apply capital. We marginally determined how to apply capital to best opportunities. Lastly, we learned to pull capital out of lesser performing areas to concentrate it on over performers.

I don't know about you, but this is anything but random walk stuff.

Finally you stack up markets. lol

Go way out there and take a look. The people I play with see me as different. If I don't C&R in phone settings, I get called for a C&R. Why? It is because a lot is riding on my bets usually. OPM...

If the SEC is bugging me for insider trading and I am not, then I know they are learning to monitor in new ways. I also know what I am doing is way out of their box.

What do people who know me think. The guy in who was charge of Y2K at American Express and now runs 5 hubs to keep all electronic stuff rolling there, takes a day off a week and has a second office duplicated there so that he can do investing in stocks real time once a week. He works at his job for the fun of it. He is running along at the same cap I have for # of shares per money stream.(100,000) He can trade 10% of any 3 beta stock that exists on any given day. We agree not to do the same ones at any time.


This post will add another dimension to your life in the consideration of things. You can use money management to run simultaneous trades in ES on differing fractals and always have the identical application of some form of SCT. It happens that I am documenting an SCT method using many viewpoints.


You can picture me as a hard working person on behalf of others. Waht I reduce to documentation in the form of hard working factual stuff per day in all the places I do this for is a statement. It says that we are a long way from getting the job done well and right. I am fixing that steadily and with excellence.

Here is the SCT canning (they do this to tuna, too) process.

1. The raw chronology on Stochastices thread (250 pages in ET)

2. Version I (in journal) of same with crap and redundancy editied out. (lots of word pages on 5 floppies) My last book was 67 floppies at this stage.

3. Version II ( To be in journal) this is version I shorted and focused to only the chronology of the learning method as stated in only my posts (all other workers stuff is deleted) (200 pagesin word and in now in re-edit before posting to add chart book references and have all terms and ideas in bold for spin out..

4. "Spinout" is the glossary of bold terms, mini methods, and ideas which is chronolgically cross referenced into Version II to give context.

5. "Chart Book" this is the set of charts for the 6 month chronology. It is annoted with atwo page wise excel so that all possible trades are noted in the daily context of the potential of the day.

6. Last phase (III) is a book. It will be called SCT Technical and Psychological Guidebook. It has three parts: The Construct; Building Wealth; and Applying the Life-cyle Hypothesis.

This will all be done by Labor day.

I think this will be an enabling thing for a lot of people.

So far in my life I just do the same thing over and over.

Now I am finishing up everthing. I plan to rough out several things I have worked on in my lifetime to get them to a point where others can run with the ball. I have 10 favs. Most of all I would like how plants grow food to be done. from pstachios to cattle on the desert eating grass we brought back from extinction.

Looking back, I notice that always having tons of money supplied to me after I worked my way, through college, made everything very very neat and a lot of fun.

*application of capital
 
Quote from trade4succes:

What is the object of your research?

Am I right to say that the hypothesis is that in order to maximize her returns an independant trader is best off to use the SCT approach?

Cheers, appreciate your posts!
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girlpower (Natalie) is an ace. She is there meaning scaling and seeing simultaneous play on differing fractals. People go places and do things ..i had colleagual relations with the London School of Econ because of international meetings vis a vis econometrics and ISAGA stuff. Natalie is smoking along an i get LSE vibes and I know she did MM stuff there..

She is operating in a great place and it includes really seeing the market opportunities continually. This is looking at it as an SCT person. she continues to fold into her skills, effective wys to deal with more pieces of the continuum. What is really keen is her ability to give more than other fractals a look see, concurrently with her primary focus, and do turns there.

This is like pouring honey on a sculpure. She has the sculpture and is using it well as a holistic trader. As she pours honey on it; she is just filling out her porfolio of opportunites and spreading risk all around in a market she has the SCT tools for.

OT re: research. Jim Pope (1967) at Jung Institute was into intellect (water in dream analysis and in religious confabs)) I was relating vis a vis recurrent dreams and learning (in dreams) which has a lot to do with intellect. The contemporary NLP stuff vis a vis pictures is the connection here. The formation of clear, concise focused, operant "pictures" is what wins. This is a intellectual clarification process.

I create pictures for traders primarily. Getting people off their turf is extremely important. I put them in a place for change to take place. When you look here and see people in their places, I am a major threat to many.

This is, after all a cyber space. lol I was a cybernetics fan long long ago .. different cyber....

It is extremely hard to go to a place where you haven't been. My languaging is too long to hang onto as you see. It is hard to set up an old tent in a new place.

The edge world is a disaster for example. There are people who are educated who cannot use their money to make money because of the place in which they reside. The snowball's chance in hell and it's opposite, I am toying with because I am rescheduled into Antarctica in January.

The extreme place of "edgeland" is so well populated people can look in any direstion and see another happy person there. Well today I found out not to associated them too closely; they have apparently staked the place out already.
 
Please excuse my naivete Jack for I know not what I speak. But what I'm getting out of this so far is:

Trading off the daily, 60 min, and 5 min. time periods. zoning if will from one point to another while adding and subtracting contracts along the way as predicated by the lower time frame (5 min) as not to undermine the higher time frames. I think.

Which brings me to believe of these 3 frames as fractals of one. Which brings me to believe that you need three separate trading accounts for each so as not to "cannibalize" or dilute from the other??

I can see where your going with this but can't quite put it together. If this has been re-hashed before please pardon the inconvenience.
 
I was following you for awhile Jack, then of course your sanity/insanity or my insanity/sanity kept me from being able to absorb more.

Regarding riding different fractals on the same instrument I find very interesting. I assume there are fractals that are held overnight with positions being in the opposite direction, great way to manage risk overnight.

It never ceases to amaze me the level of depth some people can envision. Unfortunately, I am not one of those people. I believe the term is average.

regards,

Bruce Hawkins

p.s. I may have missed it, what is "FA" ?
 
On fractals:

What I am afraid for is the following:

What if I am short on the daily, just putting in a short on the swing and at the same time I see an opportunity for a scalp on the short side and I take it.

Then somebody with a fat finger takes out all the offers on good news.

You would go tapioca with all your capital invested in three different timeframe accounts. While for instance Candletrader with his edge approach only risks to lose part of his capital..

Personally I rarely trade different timeframes at the same time. Attention wise, technical wise and company rule wise it is too difficult at the time.


On continuous trading;

I have been trading like this since I can remember. I am always looking for an opportunity, dictated by market activity. If trending, I try to catch a ride. If choppy, I try a scalp.

What is difficult for me sometimes is to change from scalping mode to trending mode in an instant. Today I was scalping ("marketmaking") the entire day, until I got caught in the squeeze at the end and lost some decent money. I just couldn't reverse myself in time for the change in behavior. Fortunately I reversed to ride the blowoff near the close, so I made most of it back. (i traded a stock highly correlated to the s&p)

Happy trading brethren!
 
Quote from bronks:

Please excuse my naivete Jack for I know not what I speak. But what I'm getting out of this so far is:

Trading off the daily, 60 min, and 5 min. time periods. zoning if will from one point to another while adding and subtracting contracts along the way as predicated by the lower time frame (5 min) as not to undermine the higher time frames. I think.

Which brings me to believe of these 3 frames as fractals of one. Which brings me to believe that you need three separate trading accounts for each so as not to "cannibalize" or dilute from the other??

I can see where your going with this but can't quite put it together. If this has been re-hashed before please pardon the inconvenience.
More...

You must be sure to be able to continue trades on each fractal without messing up your ap of cap. Identifable accounts do that for you. There is a thing there too to help trading. You can trade on a combined ticket and parcel out the contracts into separate accounts

I never heard the term cannibalize before.

If you go long on 60min (fractal A) and sit for 20 days do 12 contracts for example In that time you will do 3 to 5 on fractal B you can bet you are both long and short alternatively (lets say long 8 , short 8 and then long 8)

It absolutely has to appear that you hold 20 contracts all the time and not 20, 4 and then 20.

Fractal A in one trade makes 12 time 39 points. The Fractal B trades make 8 times 16 plus 8 time 14 plus 8 times 13.


You cannot have your first 8 short take off 8 contracts from your 12 long. We know the 12 long is losing points and that is okay, sort of, because of the FA of fractal A and the FA of fractal B.

when you capitalize both fractals you do cancel one with the other during some periods, but you still have all the capital in the market. If you let the "cannibalizing" screw you by taking twice the money out (capital canceling capital and all comming out), you defeat the application of capital.

Thi is very important for you to clarify and point out. I am not a good poster in many ways.

to expand to the three examples A, B and N fractals. That intraday one has to be independent of the others as well.

The key idea is applying capital using a trading strategy. Three concurrent applications in one market and three applications of SCT relating exclusivielt to each application.

Above four profits are taken: A short(8 time 16points), a long(8 times14 points), and on day 20 two trades(8 times 13points) and (12 times39points).

The big Q for most people is how to hold the long trades. Why not just merge the capital in frctal A into the shorter B fractal trades. The reason is based on risk diversification on portfolios.

The deep think on this comes down to defining the trends in the fractals very thoroughly using the same risk analysis in each application.

The SCT is applied to each and every cell opportunity. Scaling is applied in a kindred manner.

Before this the FA defines that the separate applications are independant.

A person must be able to understand the synthesis of market movement occurs on several fractals where each is driven by a periodicity that is different and is independent.

Thanks for cleaning up the very important details I muddied a little.
 
Quote from Tonkadad:

I was following you for awhile Jack, then of course your sanity/insanity or my insanity/sanity kept me from being able to absorb more.

Regarding riding different fractals on the same instrument I find very interesting. I assume there are fractals that are held overnight with positions being in the opposite direction, great way to manage risk overnight.

It never ceases to amaze me the level of depth some people can envision. Unfortunately, I am not one of those people. I believe the term is average.

regards,

Bruce Hawkins

p.s. I may have missed it, what is "FA" ?
More...

fundamental analysis.
 
Quote from trade4succes:

On fractals:

Personally I rarely trade different timeframes at the same time. Attention wise, technical wise and company rule wise it is too difficult at the time.
More...

I'm learning to do it better, but I'm still making some big mistakes. not least when I'm short one and long a second, with some scales going in just to really confuse the exits. Sometimes, I'm finding that I'm not entirely sure what positions I have. My notebook is proving to be invaluable for keeping track, but it is too slow when everything is happening all ta once, and it would be neat to find a better way of sorting it all out. That's more a practical problem than a strategic one.


On continuous trading;

I have been trading like this since I can remember. I am always looking for an opportunity, dictated by market activity. If trending, I try to catch a ride. If choppy, I try a scalp.

What is difficult for me sometimes is to change from scalping mode to trending mode in an instant. Today I was scalping ("marketmaking") the entire day, until I got caught in the squeeze at the end and lost some decent money. I just couldn't reverse myself in time for the change in behavior. Fortunately I reversed to ride the blowoff near the close, so I made most of it back. (i traded a stock highly correlated to the s&p)

Happy trading brethren!
More...

Yeah - I have that problem too, and at the moment I'm finding it doubly hard using 3 timescales of trades going on and occasionaly merge them all into 1, and sometimes just get out and start again...

Happy trading to you as well. :)

Best

Natalie
 
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