Question for Grob/Hershey...

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Easy. First off, I trade for fun, education, and relief from boredom when I am not working making money that most people who post here would kill for. It so happens that I am far better at what I do professionally than at trading.

Second, I have two formal "systems", both Jackean in their inscrutably incomprehensible complexity, each with about ten rules (or existence conditions). One of those systems I stole from John Merchant here, who fully disclosed it some months back. I provided an example trade of it yesterday.

Now with TEN rules, how often do you think an opportunity pops? And if you are so conservative that you are only willing to roll one-quarter of one percent of your net worth in a daytrade, how rich can you get, how quick, hahahaha?!

I would dearly love to have the execution report you posted yesterday, but if I had that much money I wouldn't bother to trade, I'd kick back and spend my loose change on tight women.

What I have advocated under many guises and at many times is using trading to focus your attention on the markets second-by-second to discover those subtle elusive anomalies that Jack sneeringly labels "edges". My OTHER system is built around detection of the routine manipulations which I have observed while sweating through pitiful little one NQ trades as if my financial future depended on it. Mike.
 
Speculation is futile but I cant help feeling we are in the beginning of a bear thats going to last for awhile. Tradingwise I dont mind as they are easy to trade, imo, but Im worried about my friends and relatives 401k's etc. I am urging them to get conservative but they didnt listen before and they probably wont again. Nevertheless ours is not to reason why ours is but to sell or buy.:)
 
Quote from easyrider:

Speculation is futile but I cant help feeling we are in the beginning of a bear thats going to last for awhile. Tradingwise I dont mind as they are easy to trade, imo, but Im worried about my friends and relatives 401k's etc. I am urging them to get conservative but they didnt listen before and they probably wont again. Nevertheless ours is not to reason why ours is but to sell or buy.:)
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easy - I agree that a very LT channel short is on the horizon... but I think we are in the end effect zone and we might see the July highs challenged into the end of the year.

We've been short since about Aug 1 - with the left side getting set in late Aug. That trend may be ending soon with a lousy long taking us into the end of the year. IMO

FUnny about relatives not listening. I get the same treatment -- say, why don't you buy some options to hedge your portfolio??? naaaaaah

Edit: usually -- naaaaah those cost me MONEY!
 
Quote from osho67:

Yes, you are right I am only trading YM, but what you are suggesting is a good idea, that it is better to draw channels on YM, but trade the ES ?(ES is the "traded market" in this context)

As far as I am aware, nothing leads YM, so I have no idea how to achieve an effective monitoring of YM, unless I choose a 1 minute timeframe to draw channels, in an attempt to produce a leading indicator for YM, but this is going away from the agreed setup which I don't want to do.

I am assuming that most traders are trading ES, and not YM, but it would be nice to know of any traders trading YM, using SCT, and how they overcome the fact that they are always on the leading market

Many Thanks

Osho
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I operate on the ES because that's what I started with and it really is a smooth place to be. The liquidity is several times what it was when I started, and there is no need to ever hurry. A day is 81 bars.

The YM is certainly a good instrument to trade. It wasn't when it just came out, but like all the other stock index futures, the liquidity has really ramped up. (Anyone remember when it was barely trading 600 contracts per day?)

Monitoring on coarse is sufficient to get the job done; ES, YM, NQ . . . probably the Russell too, although I monitor just the 3 brothers.

I found this in my archives.
 

Attachments

Is scoring used in SCT? Score is mentioned in a summary table in the sweep doc but there is no further detail.

The Trend Ending column of the Gausians table states: Short=Black Falling to Black Rising, which I would expect to be Long. I was under the impression the normal sequence for transitioning to a Short channel is B2R -> R2R -> R2B. Am I reading the sweep table incorrectly?
 
Quote from Eagle8:

How realistic is it to work up to trade 50 contracts using this method. Using market orders are fills as quick as with trading 1or 2 lots? What dangers if any are there in trading this size at normal volume levels - other than technical ones such as ib feed going down? it seems that many traders who are successful never increase their lot size beyond say 5 on the basis of perceived risks. Why is this? I assume they aren't trading size because of self-imposed limitations and an exaggerated fear of black swan event type risk. Is this reasonable or does trading the es get more difficult as you add size?
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Eagle8, you'll probably get a better response to this type of question in the Order Execution or Trading forums. Do you have access to Time & Sales data? If so watch ES throughout the day to get a feel for the size of trades flowing through the system... you will see MANY trades at 50+ contracts.
 
Quote from osho67:
Basically I can draw channels, charts posted on this thread are said to be realtime but my channels don't always correspond, often causing trade reversals and many trades, I have included an example, how can I spot the correct channel as in this example ? Is there something other than looking for pt1, pt2 and pt3 that makes it easier to determine the correct channel?
How do you know the correct slope of the channel ?
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If you haven't found it already, there is a Channel Documents folder under the Jack Hershey Strategies group on MSN that has a lot of good detailed docs on channel annotation. I can thank Ireland for pointing me to it.
http://groups.msn.com/JackHersheysStrategies/documents.msnw?fc_p=/Channel Documents&fc_a=0
 
Quote from icarus618:
Putting oneself in a position to monitor effectively real-time is the edge par excellence, if it can be called an edge. It is apparent this is not the object of software makers or users.
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Have you (or anyone else on this thread) built any custom software tools to enhance your monitoring?
 
Havent even tried to draw any channels this morning. LOL. What a mess. There arent many sure things in the market but this mornings early test of 1200 was one of them. Kind of wild since, tho.
 
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