Spydertrader's Jack Hershey Equities Journal II

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"JOHNPINOCHETT"

Go thru the post for 8833broc and you will find a list of stocks that were traded each month on the "DU" criteria and the TA setups. Rockets, etc, type set ups are not included. I keep a relational database that tracks the traded stocks and probably can get you additional information, in the format that you want, that is not in my posts.

Let me know how I can help
 
I have COGO, GMXR, SMSI on my watchlist for today.

I would be interested to learn how people decide how many shares to allocate to each trade they make. Since I'm a complete beginner, I haven't allocated more than 100 shares to each trade thus far.
Thanks :cool:
 
Quote from 8833broc:

"JOHNPINOCHETT"

Go thru the post for 8833broc and you will find a list of stocks that were traded each month on the "DU" criteria and the TA setups. Rockets, etc, type set ups are not included. I keep a relational database that tracks the traded stocks and probably can get you additional information, in the format that you want, that is not in my posts.

Let me know how I can help
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Thanks!
 
Quote from TokyoWarrior:

I have COGO, GMXR, SMSI on my watchlist for today.
More...

I have the same.

I had AP as well but it doesn't meet the cutoff for average daily bottom. Shame as the daily chart looks like it is ready to pop to the upside. However, as stated many times...don't invent things....

After all, I don't want to be "taken care of" by my platoon buddies.....:)

Did anyone else fall out of their chair because they laughed so hard at that part of the journal? I think it was in journal 1.
 
Quote from TokyoWarrior:

I have COGO, GMXR, SMSI on my watchlist for today.

I would be interested to learn how people decide how many shares to allocate to each trade they make. Since I'm a complete beginner, I haven't allocated more than 100 shares to each trade thus far.
Thanks :cool:
More...

Jack advises with futures, that you stick with 1 contract until you've doubled your money three times, and taken the doublings out three times.

i.e. 5k -> 10k, take out and spend 5k. Repeat 3 more times.

Once you've done that, you are ready to start increasing size.

YMMV, but I'm doing something similar. Yes, it takes longer, but it helps to reinforce your emotions that you can do this, and it's not hard.

With equities, it might take a really long time to do this exactly as laid out, but it's a place to start with. Once you feel you are confident and ready to increase your share size, there are a number of ways you can scale up. Both journals discuss some methods for determining trade size, IIRC.
 
Spydertrader, I recall you saying that DU as currently calculated is the average of the lowest bars for the last three months. I'm trying to create your DU formula in Tradestation. After averaging the last three months how do you arrive at the lower and upper range of DU?
 
Quote from TokyoWarrior:

I have COGO, GMXR, SMSI on my watchlist for today.

I would be interested to learn how people decide how many shares to allocate to each trade they make. Since I'm a complete beginner, I haven't allocated more than 100 shares to each trade thus far.
Thanks :cool:
More...
For each strategy that I trade, I allow for a fixed level of risk which is a function of the amount in my account. As I earn more, the proportion remains constant so the risk will slowly increase. If I put on losing trades, then the amount I risk will decrease.

I started by risking a miniscule amount for each strategy and then after I've put together a string of trades which were profitable, and during which I followed my rules (very important!) then I increased the proportion of my account that I would risk.

I think some people are currently risking about 1-2% of their account per trade, but I'm not in their league yet. For my big trades which have a positive track record, I'm risking 0.25%. I would like to boost this up over the next year or two, but I don't want to rush anything. I started trading this system with much larger risks and it played hell with my brain. Personally, I learn best when I focus on one thing at a time, so to learn about the system, I tried to eliminate the fears of loss.


BTW: some of the stocks you'll trade will be $10, some will be $50. I like to keep the risk constant, so my position size will be five times larger for the $10 stock than for the $50. It helps when you gather statistics, so that a half dozen winners in cheaper stocks aren't dwarfed by a couple losers in expensive stocks.

Good luck!
 
Hi Spyder,

Thanks for the charts.

In this chart you show a FFT, followed by a 2nd FFT and a 3rd FFT before a breakout occurs. How would this be traded? Did you wait through the CCC for the final BO or did you trade through this choppy mess with a number of wash trades?

Thanks again.
 
Quote from qed:

Spydertrader, I recall you saying that DU as currently calculated is the average of the lowest bars for the last three months. I'm trying to create your DU formula in Tradestation. After averaging the last three months how do you arrive at the lower and upper range of DU?
More...

Once I have 'Average Dry Up' calculated, I use statistics to capture the Low Band and High Band Numbers. Simply look at the chart script code for the math behind these calculations.

{Dry Up Calculation}
AVERAGEDU:= (DU1+DU2+DU3)/3;

curVol := VOLUME(Barcount-1);
DUBand := AVERAGEDU*0.4986;
DUHigh := AverageDU + DUBand;
DULow := AverageDU - DUBand;

I coped the above code directly from Chartscript Version 4.1

- Spydertrader
 
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