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Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
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For those who have had some difficulty with drawing channels, you might review the Channels for Building Wealth v2.2.pdf. In addition, Jack describes the channel drawing process, step by step, in DbPhoenix's Determining Trend Thread linked by Nwbprop in Journal One.
I recommend reviewing the 'Determing Trend' thread first. Then, if you require additional input, review the 'Channels Doc' linked above.
- Spydertrader
I recommend reviewing the 'Determing Trend' thread first. Then, if you require additional input, review the 'Channels Doc' linked above.
- Spydertrader
Thanks mischief. Greatly appreciated.Have you ever thought of breaking up your exit trades in 2 portions ie 1 is a trailing stop and 1 is a stop at breakeven? This might help if 1 is not able to monitor the market at all times.
Quote from mischief:
I'll consolidate both replies into one post..
John
Yes, I have done a bit more work on the scripts. I got pinged as a 'pattern trader' because I manually entered one too many trades and my old script had a couple of 'unusual' flaws that triggered too many same day exits. As a result, I had to sit out for 3 months. A very expensive oversight let me tell you!!!
I can't recall which version I posted last, but this one checks for gaps, has a more sophisticated money management system and also limits the number of positions I enter in a single day (to avoid the pattern trader issue). I have also removed the need for a loop to calculate cumulative volume, which should make it run a bit faster.
If you want a copy, PM me and I'll give you my e-mail address. I get enough spam as it is without adding to it by posting my e-mail address in a public forum!
With regard to Amibroker, the standard version will do everything you need to do to run the scripts, but the smallest timeframe it uses is 1 minute. I personally would recommend the 'Professional Edition'. It doesn't cost THAT much more and the 'real time' functionality may be useful in the future. In addition, Tomasz does such an outstanding effort with the software for such a low price, I wouldn't begrudge him the extra license fee. I'll be paying for an upgrade as soon as my current version expires regardless of whether I need it or not, as my way of 'supporting' him.
Billp,
My initial stop loss is 2%. I did extend it to 4% for a while to avoid same day stop outs, but the system performance deteriorated substantially. Now I just enter fewer trades. Bear in mind that I've only switched on real trading again in the last 2 weeks after an 'enforced' trading break.
As soon as my trade has moved above the entry price, I move the stop to break even. The philosophy here is I'd rather take a wash than a loss. If the stock is only a couple of cents above, I'll leave it at the 2% level, this is a bit subjective.
After that, I just leave the stop at break even and wait for it to hit my profit target. If it doesn't, I'll generally exit after 4 days. This is an area I need to work on, since I've noticed that if it hasn't hit the profit target after 4 days, it usually retraces and I get out at break even, which gives up the profit at 4 days that I usually have. I've been tending to hang on for a couple of more days in the 'hope' of hitting 10%, which I need to stop doing.
I don't have the stats to hand, but will try and calculate them over the next few days. Subjectively, a good number do hit the 10%.
The next thing that I want to do is to start trying to automate the rocket and iceberg trades. With Amibroker, you can automatically generate trendlines and compare price to these lines, which THEORETICALLY will allow you to automatically look for FTTs. I can't see however how I could automate FTT trades on the ES or YM. Perhaps when my equities method generates enough cash, I can quit work and trade the 'night shift!'. I certainly love this stuff more than my job (even though work pays pretty well.)
Hi Billp,
I'm not a fan of exiting in multiple lots. Van Tharp demonstrated convincingly (to me) that scaling out reduces overall profitability. I'd rather just take my 10% and move onto the next trade. Besides, the stocks we trade are so volatile that any trailing stop would have to be extremely wide if you wanted to hold for anything longer than a couple of days.
I'm not a fan of exiting in multiple lots. Van Tharp demonstrated convincingly (to me) that scaling out reduces overall profitability. I'd rather just take my 10% and move onto the next trade. Besides, the stocks we trade are so volatile that any trailing stop would have to be extremely wide if you wanted to hold for anything longer than a couple of days.
Hi Spydertrader,
Thank you for producing and maintaining this excellent journal.
I hope you will be continuing this journal next year. If so, will it be possible for you to describe Jack Hershey's methods for futures trading (SCT, FTTs, etc.) as you have so kindly and clearly described his equities trading methodology on the opening post of this journal. It will be most helpful for people who are interested in his futures trading methods to have access to its description in one place and will serve as a starting point for discussion and iterative refinement.
Best regards,
-kk70
Thank you for producing and maintaining this excellent journal.
I hope you will be continuing this journal next year. If so, will it be possible for you to describe Jack Hershey's methods for futures trading (SCT, FTTs, etc.) as you have so kindly and clearly described his equities trading methodology on the opening post of this journal. It will be most helpful for people who are interested in his futures trading methods to have access to its description in one place and will serve as a starting point for discussion and iterative refinement.
Best regards,
-kk70
Quote from KK70:
I hope you will be continuing this journal next year. If so, will it be possible for you to describe Jack Hershey's methods for futures trading (SCT, FTTs, etc.) as you have so kindly and clearly described his equities trading methodology on the opening post of this journal. It will be most helpful for people who are interested in his futures trading methods to have access to its description in one place and will serve as a starting point for discussion and iterative refinement.
Next year (2007), I plan to split off the futures Discussion in a separate Journal from Equities. Although the two methods do overlap, having two different threads should minimize any confusion for those at different points on the trading education continuum.
- Spydertrader
Ya know Spyder, I gotta say.. you are the man. Your contributions are very, very admirable.Quote from Spydertrader:
Next year (2007), I plan to split off the futures Discussion in a separate Journal from Equities. Although the two methods do overlap, having two different threads should minimize any confusion for those at different points on the trading education continuum.
- Spydertrader
Keep up the great work,
-kt
Quote from ktmexc20:
Ya know Spyder, I gotta say.. you are the man. Your contributions are very, very admirable. Keep up the great work,
Thanks for the kind words, but the real credit belongs to traders, such as yourself, who share their efforts here on a daily basis. In case anyone missed it, Click Here to read another post from Jack where he describes, in great detail, how one should view the market. Instead of the 'gambling paradigm,' try to view the market from a perspective of "taking water from a fountain." Just reach out and grab it.
- Spydertrader
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