Spydertrader's Jack Hershey Equities Journal II

[Doxie]

Quote from mischief:

I'm having some initial success and would be happy to share my results if anyone is interested. I'm using Amibroker and IB.

I'd love to hear what you're doing. I used to have an automated thing going with Wealth-Lab and IB, but when your internet connection goes out (we live in the boonies and are lucky to have cable modems at all!) the whole thing comes to an abrupt standstill that has to be rebooted. I've heard that the versions of Wealth-Lab after the Fidelity deal don't work with IB, but I haven't personally tried it since then.

Before that I'd used the Excel DDE spreadsheet with IB, but I haven't tried that lately either. It had the same problem if the internet went out, although it wasn't quite so bad.

Anyway, it's been so long since I've tried it I'm ready to try again! Thanks for sharing

 

[Spydertrader]

I purchased a few shares of NTRI this morning receiving a fill price of $37.77 USD. NTRI resulted from observing the Final Universe looking for equities which set up according to Jack's 'Bruno R' post. I continue to test this method of Watch List creation, and it continues to show results.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1005677>

 

[cnms2]

I reviewed the 'Bruno R' post, but I don't know what you mean by "this method of Watch List creation". Please elaborate. Thanks.

Quote from Spydertrader:

I purchased a few shares of NTRI this morning receiving a fill price of $37.77 USD. NTRI resulted from observing the Final Universe looking for equities which set up according to Jack's 'Bruno R' post. I continue to test this method of Watch List creation, and it continues to show results.

- Spydertrader

http://www.elitetrader.com/vb/attachment.php?s=&postid=1005677

 

[Spydertrader]

Quote from cnms2:

I reviewed the 'Bruno R' post, but I don't know what you mean by "this method of Watch List creation". Please elaborate. Thanks.

Journal One provides step by step instructions for creating a Watch List of stocks for daily monitoring. Journal One focuses on monitoring stocks which find themselves "In Dry Up" on the night before. In contrast, Jack's 'Bruno R' Post creates a watch list of stocks by focusing on the technical indicator set ups. Although Volume does continue to play an important role, with Jack's 'Bruno R' post, we focus more on locating equities which have already started to "make the turn." We base such set ups on MACD and Stochastics (5,3,3) and decreasing volume. Last night, I created a list of equities which appeared (to me at least) to match the set ups described in Jack's 'Bruno R' Post. Last night, NTRI appeared on my list. Today, I monitored these equities for volume changes during the morning. NTRI provided a volume signal at 10:36 AM. Since I had price improvement, I entered into a Long Position with 200 shares of NTRI.

I hope that helps explain my thinking.

- Spydertrader

 

[cnms2]

Thanks! As always you took time for a clear and nice explanation.

I wonder if my observation is correct: Jack gives more importance to EPS and RS in building his quality universe, while you ponder more on ranking (cycle repeatability) and signals (MACD, and Stoch).

So Jack tries to get an edge by playing (only long) stocks that are poised to go up (high EPS and RS). Your approach also accepts stocks that are not that bullish anymore, but have a history of good tradable patterns. So with your approach you may trade (long) stocks that are headed down, on retracements.

By adding channels as an intermediate and short term trend detector, your ranking universe could be traded efficiently both long and short. In this situation EPS and RS will provide an additional edge only to the bullish stocks. But you'd avoid trading retracements.

Quote from Spydertrader:

Journal One provides step by step instructions for creating a Watch List of stocks for daily monitoring. Journal One focuses on monitoring stocks which find themselves "In Dry Up" on the night before. In contrast, Jack's 'Bruno R' Post creates a watch list of stocks by focusing on the technical indicator set ups. Although Volume does continue to play an important role, with Jack's 'Bruno R' post, we focus more on locating equities which have already started to "make the turn." We base such set ups on MACD and Stochastics (5,3,3) and decreasing volume. Last night, I created a list of equities which appeared (to me at least) to match the set ups described in Jack's 'Bruno R' Post. Last night, NTRI appeared on my list. Today, I monitored these equities for volume changes during the morning. NTRI provided a volume signal at 10:36 AM. Since I had price improvement, I entered into a Long Position with 200 shares of NTRI.

I hope that helps explain my thinking.

- Spydertrader

 

[Spydertrader]

Quote from cnms2:

By adding channels as an intermediate and short term trend detector, your ranking universe could be traded efficiently both long and short. In this situation EPS and RS will provide an additional edge only to the bullish stocks. But you'd avoid trading retracements.

Ding! Ding! Ding! We have a winner!

Excellent observation. Jack's (brief) instructions regarding the shorting of Hershey Equities remains attached in Journal One. I follow a similar methodology when shorting. The next step (for me at least) involves merging the instructions provided by Jack in his "Too Long" Post into this whole paradigm. Adding the acceleration of both volume and price should improve profits significantly, but still requires additional testing before I can ramp up to full scale positions. I continue to work on testing these principles. To follow up on the NTRI Trade, I sold all 200 shares of NTRI when price started exited my short term channel receiving a fill price of $38.38 USD.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1005839>

 

[Spydertrader]

Quote from Doxie:

I used to have an automated thing going with Wealth-Lab and IB.

If you don't mind me asking, how did you work around the WLD constraint of having to wait until the current bar closed?

- Spydertrader

 

[Spydertrader]

Monday Dry Up Stocks

BOOM BTUI CKCM CTHR ENG FORD GROW IIJI NGAS TIE VPHM

- Spydertrader

 

[tradingbug]

Quote from cnms2:

But you'd avoid trading retracements.

I think it may depend on market conditions and its' current opportunites. I looked at some of the stocks that Jack had posted he bought in M.I.F. . Some were bought whithin a short IT. Specifically, he went long for the retrace of a short IT trend(successfully). This was during a bear market so maybe that is all the opportunity that was provided during that time.

Putting your capital in the best opportunity available should be #1 since time is not recoverable. I hope to have this belief from experience rather than reading. lol.

 

[tradingbug]

Another thing is the steepness of the IT. I find less is more optimal(including short ITs). Often, the stocks with the highest EPS and RS have very steep ITs. Not the best for natrual cycles imo.