Socrates Examines Technical Strategy

You wanna know what is great about finally automating SCT?

I can quit trying to build my character (it was hopeless, anyway).

I don't have to draw all those multi-fractal channels and color them in just so (I now have more time to harass Neoxx).

I don't need all those extra monitors for YM and DOM and multiple time frames thereof (I can now use them to run multiple porno clips simultaneously)

I can ramp up my contracts (the $440,000 I made today alone adds 220, and soon I won't have to fuck with anybody at all, because I'll BE the market)

I will have a social life (Jack will now invite me to the gala openings of all his new institutes, hospital wings, concert halls, museums, and charity balls)

When I make enough money from NQ I am going to start limit order trading ES and totally fuck over all SCT traders (they'll learn about stops the hard way).
 
I would like to share with you how I developed the automated SCT code presented earlier (Socrates thinks he did it, but it was really me).

First I decided to take the modern software development approach: first build the interfaces and bare bones functionality, and let the client play with it and critique it. Then add functionality iteratively with client feedback until the client is satisfied with the result.

So I asked Socrates (in his head) what approach I should take philosophically. He said we must be parasympathetic and provide support, comfort and confidence. I don't mind telling you I have no fucking idea what that means, but I put the development PC on a sturdy desk on top of a pillow and connected to an uninterruptible power supply. Socrates liked it, but said it needed a finishing touch. He put a strip of 3M micropore tape over the air inlet.

Next I said to myself, this Hershey guru guy has been peddling SCT for a decade or more, constantantly tap-dancing his way out of objections posed by critics and scabbing on new functionality to optimize the unoptimizable. You see, I work in the defense industry, and you should see how code is written for the systems that are meant to protect us. Inventory code sends H-bombs on Hawaiian vacations. Targeting code kills friendlies. Wargames optimize to fight the last war.

So if he has been rationalizing and hacking for ten years, MAYBE HE HAS FORGOTTEN HOW IT REALLY WORKS.

So I went back to basics. Used price only. Showed the code to Socrates. Nononono! The algorithms have to be horizontal. Vertical code is conventional wisdom. So I took out all the carriage returns. Happiness. Fucking code is a single line 2000 characters long, but, hey, its horizontal.

For the second release Socrates wanted volume. So I wrote some ciircular code that looked like it used volume, but actually tweaked the price code to act as if it were responding to volume (don't ask).

After a few more releases to overtune it, Socrates was almost happy. He said skeptically, are you sure this code is undifferentiated? That it does not dwell in fear, anxiety or error? With a straight face, I replied, most assuredly. No conventional wisdom was used in the creation of the algorithms, it's all Hershey. You can see the results for yourself.
 
Quote from Socrates:

Aspiring traders are far better off learning the market by trial and error and seeking original solutions, rather than following a guru.
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Quote from Socrates:

I am of the sink-or-swim school of thought. I value the painful memory of horrible mistakes.... [C]haracter may well be improved by trading profitably.... elf esteem soars when you win consistently.
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Quote from Socrates:

Ehorn referred to my fondness for quickie low profit scalps. That is all I ever post because they give me an excuse to extole the virtues of my fraudulent systems designed for the desperate masses.
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ROFLMFAO!

Quote from Socrates:

Limit order traders in the ensemble will not LET market order traders in the ensemble extract net profits because they'd go out of business if they did. So if they detect a widely used profitable strategy they MUST frustrate it. He who has the gold makes the rules.
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Joe, at the risk of making a fool out of MYself, I respectfully disagree with your assessment. IMHO the market is driven by the hedgers, which hedgers must put on their trades irrespective of whatever one-lot pikers might or might not be doing. The "limit order traders" you are referring to are who? The floor traders? Market makers? As you said earlier, these guys are not speculators; they are perfectly content to take their bid/ask spread and move on.

Just my two cents (and probably worth a lot less cuzza currency debasement),

Big C
 
Quote from riskfreetrading:

successful strategists and successful technicians never live in the same place.

Compared to roads and intersections, strategists hide at intersections, technicians follow the beast from intersection to intersection, in the direction of the beast.

The rest are the unsuccessful of both kinds. They represent 90% of all population, yet they lose. In a democracy majority rules, in trading majority lose.
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Thanks for the reply, rft.

Would or should Mr LJYoung, be referred to as a strategist or a technician? I personally believe he is a hopeless technician (not his fault), the reason being for this is that he 'anticipates' technicals, which is like forever 'doing the market tightrope', hahaha!

He has not yet gained a strategic mind and probably never will if he does not ever learn to cope with the present facts that underly the technicals.

He is doomed to a market always in retrospect. Naughty JH, should teach his students the full facts and not lead them on in a manner as cruel as he does.


Great thread by the way!


Dackster.
 
Quote from Spydertrader:

Such a sad commentary this thread of yours hypo.

Less than half a decade ago, you could have whipped the ET faithful into such a frenzy by summoning all manner of sock puppets and motivating usernames from all corners of ET....

Fast forward to present day and one notes both the quantity, and (more significantly) the quality, of those who answer your siren song have diminished significantly....

Page views (the ultimate arbiter of interest) remain next to non-existant....

- Spydertrader
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Hey Spydie, it WAS the holidays.... some of us sock puppets have lives...

Regards,

Big C
 
Big C, thank you for your kind remarks. But I am merely an unfraudulent Jack Hershey. The sole difference being that my humor is intentional.

If you like my humor, you should have been alive 60 years ago. I am the last of the classically-educated humorists.

Re hedgers laying off risk in the index futures, I agree that they form the majority of limit order traders, that's what futs are for. My point is that they don't want to have to PAY for the insurance. If you eat the spread, you pay THEM for the insurance. YOU make more than a tick, it starts to cost.

But I waste my time with trifles here. I must get ready Monday to trade 720 contracts. Shortly I will make Baron a ridiculous offer for ET and its mailing list of 30 active members. Then I will shut it down and burn the list. As a social disservice. If Jack is only found on ET, he will disappear forever.
 
Quote from jack hershey:

To take the market's offer, some arbitrary decisions must be made. It is also true that to take the market's offer, a partnership with the market is essential. The basis of the partnership is not determined intellectually.

The mind becomes differentiated as consequences of many prior decisions. This differentiation denies that person the ability to set up and conduct a partnership with the market.



Hello, Jackie.

You really now how to 'blind' those poor little students of yours, don't you?

I like you Jack, but sometimes you really are a naughty boy.



Respectfully,

Dackster.
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Nonononono 666! I refuse to PA Deco. You are on a roll with a heretofore hidden talent! You could be a 21st Century Homer composing grand epic pomes in limerick form! Do continue! But save them off line, as this thread hasn't much life left in it.
 
Moderators, technical content comin' atcha.

My championing of the use of poor downtrodden Joe Doaks' Ternary Decision Theory for stock investing found so little support on ET that I abandoned the thread in a s(h)nit. But I am reserecting it here as an index daytade biasing tool because this threads readership seems to be appropriately credulous. Herewith my badvice based on the green-light-go attachment that not only have DJ stocks turned, but you should be prepared to adopt a long bias during the day. $SPX is almost identically up, and $NDX lags by only a day. I myself own two Dow stocks, PFE and VZ, neither of which I recommended to ET because they were just too good an opportunity at the time.

Why, you may ask, am I writing this? Why indeed are YOU reading it?

Jack's oft repeated critique of TDT is that it leaves money on the table. My riposte is that TDT at least gives an unambiguous buy/sell/stand-aside signal, late or not. If you used it to swing trade index futures or index ETFs in the recent decline, you would have made a shitpot of money.
 

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