Spydertrader's Jack Hershey Equities Journal II

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Greetings folks,

I've been learning JH's method for several weeks through these excellent journals. They are impressive and people on these threads are very helpful. To give something back to the community, I wrote a small app to generate Final Universe and Dry Up each day and post it on my website. It may mitigate the pain to prepare it every night manually. The site also contains a wiki and a forum in order to manage information collected from different sources. Everybody is welcome to post messages, write articles and work on wiki book on Jack Hershey Equities Method.

I hope it helps.

Steve

http://www.networknt.com/wiki
 
Quote from Mercury77:

BTW do you still trade the original set ups discussed in journal 1 or are you more and more trading the Bruno R set up instead of the original set up? Thanks in advance.
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I still trade primarily off the Volume Signals outlined throughout the Original Discussions in Journal One. However, in an effort to improve performance, I use the various sequences of Indicators, as well as, additional 'trigger' parameters (Unusual Volume) in an effort to increase profits.

If you see yourself having difficulty with 'Bruno R' or other chart pattern set ups, I recommend taking a step back and focusing on the more 'beginner level' rules. Adding additional trading parameters isn't an either / or issue. One doesn't simply trade beginner, intermediate or advanced level set ups. Rather, the various methods blend into a seamless methodology whereby the trader simply 'knows' what best trade to take base on the information appearing 'at that time.'

The 'Bruno R' set up provides an opportunity for entry 'at the turn' of a stock's natural cycle. While definitely providing increased risk on entry, 'Bruno R' also provides opportunity for improved reward. To 'see' how The 'Bruno R' set up can bring about an Equities Rocket, open a thirty minute chart of SMDI (Monday, July 3, 2006) and notice the Indicator changes. (See attached.)

The Dry Up Rules discussed in Journal One provide an opportunity for a new trader to enter and exit based on high probability of profit. Designed under the premise of showing the new trader early profits (in an effort to self motivate towards learning more difficult concepts), one should master the first steps of trading before moving on to additional concepts. In short, I find it best to crawl, before walking, running or flying.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1121312>
 

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Quote from Spydertrader:

I still trade primarily off the Volume Signals outlined throughout the Original Discussions in Journal One. However, in an effort to improve performance, I use the various sequences of Indicators, as well as, additional 'trigger' parameters (Unusual Volume) in an effort to increase profits.

If you see yourself having difficulty with 'Bruno R' or other chart pattern set ups, I recommend taking a step back and focusing on the more 'beginner level' rules. Adding additional trading parameters isn't an either / or issue. One doesn't simply trade beginner, intermediate or advanced level set ups. Rather, the various methods blend into a seamless methodology whereby the trader simply 'knows' what best trade to take base on the information appearing 'at that time.'

The 'Bruno R' set up provides an opportunity for entry 'at the turn' of a stock's natural cycle. While definitely providing increased risk on entry, 'Bruno R' also provides opportunity for improved reward. To 'see' how The 'Bruno R' set up can bring about an Equities Rocket, open a thirty minute chart of SMDI (Monday, July 3, 2006) and notice the Indicator changes. (See attached.)

The Dry Up Rules discussed in Journal One provide an opportunity for a new trader to enter and exit based on high probability of profit. Designed under the premise of showing the new trader early profits (in an effort to self motivate towards learning more difficult concepts), one should master the first steps of trading before moving on to additional concepts. In short, I find it best to crawl, before walking, running or flying.

- Spydertrader
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Thanks for your answer. The Bruno R set up is almost like I trade now. I trade mostly momentum stocks in a nice up or down trend that pullback or rally for a couple of days. The low stochastic value makes it easier to see the pullback or to scan a universe for possible pullbacks but normally with some experience a look at the chart is enough to know where the stochastic could be. I enter normally the day after the lowest low is made and the high of the previous day (day of the lowest low) is taken out combined with a stochastic value at or below 20 on the daily chart. According to this rule you could have entered this stock at june 15 th and at june 29th. You can combine this with a stochastic reading that is above 80 and a positive macd both on the 30 minute chart for confirmation. I am working on the volume confirmation part because that is totally new for me. What I really like in the Hershey method is that the foundation on what its build is sound and logical. Sorry for my English but its not my native language.
 
I have deleted the following symbols from my Final universe.

BNT CKCM CNTF CTHR MIND MTEX

Each of the above equities found themselves out of the Final Universe for failure to maintain rank. Additional equities find themselves without rank as well, but I have chosen to leave them inside the list for now. Several stocks appear to find themselves in the middle of a possible 20% price run currently. As such, I'll let the current price run play out before making the decision to eliminate.

- Spydertrader
 
Quote from Spydertrader:

I have deleted the following symbols from my Final universe.

BNT CKCM CNTF CTHR MIND MTEX

Each of the above equities found themselves out of the Final Universe for failure to maintain rank. Additional equities find themselves without rank as well, but I have chosen to leave them inside the list for now. Several stocks appear to find themselves in the middle of a possible 20% price run currently. As such, I'll let the current price run play out before making the decision to eliminate.

- Spydertrader
More...

Spydertrader is it possible that you give me the most recent final universe so I can make a start with the Hershey method. Thanks in advance!
 
Quote from Mercury77:

Spydertrader is it possible that you give me the most recent final universe so I can make a start with the Hershey method. Thanks in advance!
More...

ASPV ATHR BBC BTUI CBEY COGO CTRN DXPE ENG FTEK GIGM GMXR GROW HANS IIG ISE IVAC JOBS LMIA LMS MEK NCTY NGS NTG NTRI NWRE PWEI RACK REDF SFCC SMDI TIE TRLG TSCM TWGP

The following stocks currently find themselves without a rank:

HANS ISE IVAC NGS NTRI PWEI TRLG TSCM TWGP

- Spydertrader
 
Quote from Spydertrader:

ASPV ATHR BBC BTUI CBEY COGO CTRN DXPE ENG FTEK GIGM GMXR GROW HANS IIG ISE IVAC JOBS LMIA LMS MEK NCTY NGS NTG NTRI NWRE PWEI RACK REDF SFCC SMDI TIE TRLG TSCM TWGP

The following stocks currently find themselves without a rank:

HANS ISE IVAC NGS NTRI PWEI TRLG TSCM TWGP

- Spydertrader
More...

Thanks!
 
Methodology explanation of last posted results

All Long entry:

Entry:

PREREQUISITE - Stock must be in DU

1. LBDU Volume Threshold exceeded before 10:30 AM Eastern Time
2. Current Price > Previous Day Close
3. MACD (5,13,6) Histogram > 0 (positive on a 30 minute chart)

I mistakenly programmed the MACD to be:
EMA(5) - EMA(13) and my results were surprisingly similar
to the correct MACD calculation EMA(5)-EMA(13) - EMA( EMA(5)-EMA(13), 6 )
results.

I now keep track of both methods.

4. Stochastics (14,1,3) %K line > 80 (30 minute chart)

Day 1 Hold:

1. Average DU Volume Threshold exceeded by 11:30 AM Eastern
2. Else, Exit

Day 1 EOD:

1. FRV Threshold exceeded by 4:00 PM Eastern time
2. Else, Exit

Day 2 AND ON

1. Rules documented at end of Journal 1
 
Just a quick FYI ...

Monday's half trading day produced lower than normal volumes for The Final Universe. As a result, remain mindful of an overabundance of Dry Up Stocks. We see similar effects around the Thanksgiving Holiday every year.

- Spydertrader
 
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