Spydertrader's Jack Hershey Equities Journal II

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Bah, ok I'm kind of spamming now but I am back reading through Journal 1 and actually just came across this quote:

Our system generated three possible trade signals from the list of five Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.
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It's on page 186:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777&perpage=6&pagenumber=186

So maybe it is LBDU before 11:30, after all...

Edit: (removed another ref to LBDU)
 
Quote from 7cal:

It's on page 186:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777&perpage=6&pagenumber=186

So maybe it is LBDU before 11:30, after all...
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I was confused initially with the time of LBDU until I got further through Journal II.

I believe Spydertrader changed the LBDU from 11:30 AM Eastern Time to 10:30 AM Eastern Time in an attempt to reduce the number of False Breakout(FBO) trades.

Check here for clarification.

So, its LBDU by 10:30 AM Eastern Time , DU by 11:30 AM Eastern Time , or FRV by EOD.

Sorry for the confusion...
 
Awesome, thanks alot for that link. That intuitively does make more sense, or else the Equities Chartscript in Wealth Lab really wouldn't need to show all 3 DU volumes.

Well back to the reading...
 
Quote from 7cal:

I have been flip-flopping on whether 'low band threshold' is in fact LBDU, or just plain old DU. Intuitively it seems like it should be DU, but the 'low band' part is the 'LB' of 'LBDU', so I'm not sure.
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7Cal,

LBDU is a derivation from Spydertraders work on DryUp. You can see from reading the journal that Spydertrader spent a great deal of time trying to derive a single measurement for DU, and came to the conclusion that there was none. LBDU is a standard deviation band that captures 95% probability of DryUp. His discussion on the topic can be found here

Cheers,

Cipherscribe
 
Thank everyone for the clarification on DU/LBDU and their timing.

The difference of "gap opening > 5%" and "price rising > 5%" has also clarified.

I still read jounal I to catch up. But it is indeed a long journal.

It also become more clear as I read spyder's earlier post. He use FRV to avoid risks, and give up some ealier gain. His target return rate seems to be 10%. Jack seems use Stochastic and his golden eye. He enter ealier, and expect 20% return. For a lazy beginner like me, maybe I should target 5% --- that is exactly what I got from XING. :) Using Jack's theory, the key of the game is "exponential", not the "rate" of the return.
 
Quote from ulmer:

I am new to here. I read the first 150 pages of journal I, and then jumped to the last few pages of journal II since I cannot wait to trade.
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I cannot place a great enough emphasis on the importance of building a strong foundation by continuing your training. Avoid the temptation to move along the continuum without a complete skill set. Take the necessary time to hone your skills before jumping into the deep end of the pool. The market does not care about your level of preparedness. You should.

Welcome to the discussion, and Good Journey to you.

- Spydertrader
 
Thank you for the advices. I did spend a lot of time on these 2 jounals, and will still do it. I also create FinalUniverse daily, and use your list as a benchmark checkup. But indeed, my "mileage" is low.
 
Quote from cipherscribe:

Would you see the current volume levels as low? I would have regarded them as quite healthy after the recent DU. On the daily chart, price and volume second derivatives on on the incline also, which (I think) reflects a healthy acceleration of both volume and price.

Any reason why you choose to close out after 3 days?

It helps me, and I am sure others have an interest in this XING position.
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Sorry for the slow response. From Friday market close until Sunday afternoon I try to stay away from my machine. :D

I agree with your comments on volume. As for "3 days" it was simply and estimate of when price would hit the left line of the channel. It got close enough for me and I got out early that morning.

Good trading to you.
 
LQDT came up on my scan for new Final Universe candidates.

It does have rank, but the volume is just above the minimum of 200K/day.

The float numbers from yahoo and msn are 25,817,000 and 7,831,600 resp which are vastly different but still within the nominal range.

This stock trades on nasdaq.
 
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