Spydertrader's Jack Hershey Equities Journal II
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I was an option market maker on Euronext Amsterdam when there was still a trading floor, I am not an market maker anymore because screen trading options was not my cup of tea so to speak but I was and am a follower of the markets both intraday and EOD so I still trade but its not my full time job anymore.
For anyone thinking of applying Jack's Methods within the options marketplace, not all Hershey Equities have derivatives. However, one could employ an options strategy (between buying calls and / or puts) at specific time frames to obtain low risk profits from the market. The difficulty resides not in the developing of such a strategy, but rather, in obtaining the options at sufficient value to maintain appropriate risk parameters.
- Spydertrader
mischief,
Thanks for your reply. Actually i don't trade futures (at least not for the time being). I'm just trying to understand better the stocks movement and know that 1 way of doing it was to understand scalping method better. Was trying to apply futures scalping method (based on Spydertrader's method) to equities.
Thanks for your reply. Actually i don't trade futures (at least not for the time being). I'm just trying to understand better the stocks movement and know that 1 way of doing it was to understand scalping method better. Was trying to apply futures scalping method (based on Spydertrader's method) to equities.
Hey Spyder,
you haven't posted any equity trades for a couple of weeks - I know you have been trading the futures... can you give us a general update on how it has been going?
Personally I have been using the Unusual volume correlation table and have found it a very valuable addition to the toolset - suffice to say that it will take the method to another level entirely in my opinion... If I remember correctly, you were testing it also...
Regards.
you haven't posted any equity trades for a couple of weeks - I know you have been trading the futures... can you give us a general update on how it has been going?
Personally I have been using the Unusual volume correlation table and have found it a very valuable addition to the toolset - suffice to say that it will take the method to another level entirely in my opinion... If I remember correctly, you were testing it also...
Regards.
Over the last few weeks, I have tested numerous methods with respect to using the Unusual Volume Spread Sheet previously posted within the Journal. In addition, I recently added MACD Histogram and Stochastics parameters to the mix in an effort to improve performance and reduce the number of false signals. While I have additional tests to perform, so far, the results do look promising. For my tests, I have chosen the cutoff time as 11:30 AM. It appears as if the signals generated early in the day have a greater chance of continuing onto profitable trades. Next week, I plan to reduce that time further to 11:00 AM, and evaluate the results as well.
With respect to futures, the results (so far) continue to go very well. Unlike in Hershey Equities, trading on an FOMC Day produces rather nice profits. While I still have much to learn before I can build up enough confidence to trade consistently, the experience gained from trading Jack's Equities method has proved invaluable to me.
As always, I plan to pass on what I have learned once I have attained sufficient knowledge to answer questions intelligently. Until then, keep the focus on how price, volume and the sequences of indicators cycle with respect to the Final Universe of stocks. Review each chart every night, practice drawing the channels (for short, intermediate and long term trends) and try to anticipate the future price action - using the tools provided within both Journals. The experienced gained from successfully practicing these drills becomes invaluable - and profitable to your trading account as well.
Good Trading to you All.
- Spydertrader
Spyder,
thanks for the reply, I am glad everything is going well.
Regarding the correlation table, I have been doing the same thing as you, taking signals only until 11:30 AM. I will take a signal after the close of the first 30 min bar as long as prorata volume is there as well as all other parameters of the method, and price formation being optimal.
I continue to look at every chart in the Final Universe and update the channels each night, so when a volume trigger occurs, a quick glance at the indicator values and the chart is all that is required to make a decision.
Adding MACD and Stoch parameters to the correlation table sounds interesting... hmmm
Thanks again, and continued good trading to you also.
I had the following trade signals today using 'Unusual Volume' for the volume trigger with Price, MACD Histogram and Stochastics (14,1,3) confirmation parameters.
NWRE
Time: 9:45 AM
Price: $12.01
Direction: Long
GMXR
Time: 9:45 AM
Price: $31.66
Direction: Long
CBEY
Time: 9:55 AM
Price: $22.23
Direction: Short
ISE
Time: 10:05 AM
Price: $39.96
Direction: Short
TRLG
Time: 10:05 AM
Price: $17.60
Direction: Long
- Spydertrader
NWRE
Time: 9:45 AM
Price: $12.01
Direction: Long
GMXR
Time: 9:45 AM
Price: $31.66
Direction: Long
CBEY
Time: 9:55 AM
Price: $22.23
Direction: Short
ISE
Time: 10:05 AM
Price: $39.96
Direction: Short
TRLG
Time: 10:05 AM
Price: $17.60
Direction: Long
- Spydertrader
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