Quote from makosgu:
A few items. The APA is a bit more detailed than has been posted anywhere in ET. I have gathered this by reading a bit between the lines. Someone somewhere was on the verge of communicating a more acute Q when grob was detailing the activity. The between the lines detail is with regards to obtaining the "Staying on the Right Side of the Market Report". It is a DOM and/or T&S M.A.D.A. which to date hasn't been posted in ET. It would actually deal with much of the fuzziness that presumably some have at the point of an action. At any point when action (trading) is initiated, the EQ is likely to be anxious for profits to immediately accumulate. The DOM and/or T&S detail is to Monitor the minority shift BSize/ASize which then follows through to the Deciding Action to stay on the Right Side. IF1, IF2 is a hyper reduction so that the drill is straight. With the aquisition of high skill, it is concievable to drop the IF1, IF2 and just SCT the DOM and/or T&S by staying on it's Right Side (a la Sexy Idea thread). The Right Side is always the minority but it is not as obvious as some have posted across ET (Scientist included). I'm still doing labwork on it and it requires ZERO data loss, hence some of my posts around ET on data loss items. I currently use a variant of IF1, IF2 on the 15M bars (hyper reduction) in order to capture at least the ABS(CLOSE - OPEN) of every 15M bar. Maybe this will raise some brows as to why SCT spectrum is broad.
MAK!
If I understand what you are saying, you raise an interesting point about whether we can reach a super efficiency by going to and staying on DOM (which I take to mean Bbid/Bask only) and disregarding bar to bar comparisons. To me, this is going beyond even Perspective C (bar to bar comparison of faster bars within the bar), to which my gut says is a tough path to go down in search of better performance, at least with respect to the ES. My experience tells me that coarse monitoring is always essential, even for an RHR method such as SCT, and on days like today--neither a W nor M--how much more can SCT extract over sitting in the tape on the slower fractal? Nonetheless, I am interested in hearing more details about what you are saying, and do realize that I may be overly restricting what I read from you.
In any event, I do feel as you do that there ought to be more to APA than what's been written so far, or at least in implementing APA. In practice it is not an infrequent occurrence that price will return to the entry price, and even play around there a bit, prior to settling on a direction. I do have ideas about monitoring other things in addition to position relative to entry price, and I think it can be detected, through coarse monitoring, that some APAs, strictly defined, need not be implemented at all, and I think this can be said for IF2 as well.
Moreover, with respect to the IF2 rule itself, I wonder whether IF2 gets me in at the best spot, since it seems to me that reversing on the BO of the prior bar going the other way is trading on the shorter length of the original parallelogram, and that even though the reversal gets me in on the right side of the market with respect to the new parallelogram, I enter on the left side of that traverse channel and have to wait out the left to right traverse that sometimes occurs within a bar or two or even the same bar. Even here, I do have my own ideas about detecting when the left to right comes right away and when no chance of a wash will arise. The rules are, however, straightforward and do not contain any qualifications, although I know that as with all truths, it cannot be true for me without putting it through my own experience, and I have yet to do this.
Hopefully I have written something that can be understood by others to further this discussion. It is rather late in the night but I feel it is more important to put this out here while I can rather than wait for tomorrow and run it through a couple of tries when it is likely I will change my mind for the reason it will take too much effort to put my thoughts on the subject into words that others can understand.
