PVT stands for Position Vector Trading. It is used to trade a high quality universe of stocks
Their particular characteristic is that they are repeatable and reliable. These two characterisitcs make it possible to trade them effectively and efficiently.
For me, position trading is done in channels that are projected into the future and the price-volume relationship is what is used to deal with price movement as bars form and the drawn channels move into the present from the future.
several indicatrs compliment the above for various reasons.
A Daily Analysis Sheet is used to keep things up to day for people who have jobs or trade full time. There is also an Initial Analyis Sheet that is used to qualify sorted stocks. One element of this is scoring which is a three variable binary system that "counts" the natural cycle of a stock's price movement.
The thee questions that are answered by scoring as vectors(magnitude and direction) are:
1. Were in the cycle are we?
2. What is next in the cycle? and
3. How fast is the cycle moving?
This was named long ago "Tomorrow's Newspaper Today." Now it is PVT for short.
Over the years this has been reduced to mechanical systems and the sheets have been automated using excel and import/export stuff. It is widely available worldwide.
This all forms a "template" for trading on any fractal in any market it turns out. For people who want to become excellent traders, the way it is done is to trade stocks and build your mind. This is not possible for all people, however due to the nature of how the mind works. It happens that it becomes "too late" for a class of people who have had "experiences" that close down the mind to further development.
Basically, I get all the blame for this phenomena and that is just fine with me. It saves me time in dealing with it. My agreement with ET precludes my commenting on the specifics of this difficulty and its specific examples which is a great out for me as well.
The "template" is applicable to Seamless Continuous Trading after the mind has been built in PVT trading.
I have not gotten to the SCT level here in discussing it in detail. SCT is an expert application. But by using parts of it, a person can assimilate all the piecs and become expert in terms of knowledge, skills, and experience as a high velocity trader.
I did give you a good overview of PVT and as a person goes to expert, he uses a few knacks here and there to keep his capital producing a lot of return based upon optimizing. Effectiveness and efficiency allows a person to not have any involvement with the conventional orthodox financial industry foundational paradigm. I never went that route so I did not recognize how it can affect the mind's processes regarding effectiveness and efficiency for a long time.
SCT trading using the template is an optimizing strategy applied to the leveraged markets from a neutral biased vantage point.
Seamless and Continuous are the words that describe this. It involves 5 degees of freedom as seen as inputs and outputs. The black box wiring so to speak. The template is inside.
Continuous refers to the fact that price is always giving profits through its change over time. A basic tennant is that SCT keeps you in the market all these times of price change.
Seamless refers to the trading strategy based on staying on the right side of the market at all times. Since, like coins, there are but two sides it is a binary seamlessness and optimizing it just a timing concern from a neutral bias viewpoint.
NOW is where making money is optimized. A bar is forming at all times. Using the template, it may be understood that the annotations projected into the future (channels on three levels and internal patterns and formations) are always there and they steadily move into the present where they contain the bar that is forming.
A routine is used to deal with making money: monitoring sets of data; analyzing the data to have a conclusion; decision making from the cnclusion and fnally using these beliefs to bahave to make money (taking timely aciton).
It the simplest way, this can be described as HOLDING and REVERSING as the future comes into the NOW where all trading takes place.
This is an exact fit with the P, V relationship.
A couple of details: holding and reversing is not atall like doing entries and exits. Optimizing is a foreign enterprize compared to the probability paradigm ofthe financial industry traditions.
Luckily, most of the time what I said above serves as a filter to generally avoid any serious considerations by people for whom it is inappropriate. But sometimes, there are people who see what the market offers and then they connect the dots and this stuff is very important.
There is a small third group who fail to be filtered and fail to understand that the time has passed for their participating in PVT and SCT; therefore, they conclude repeatedly and over and over something about their mental orientation.
