Spydertrader's Jack Hershey Equities Journal II

[dhammer]

I have one more request for a document. I am looking for a channels document that is about 50 pages long. I have found pieces of this document on msn group but I still am missing about 40%. Any help is appreciated. I am struggling in my trading and hope this document will help clearify some questions.

Thanks,

dhammer

 

[Spydertrader]

Quote from dhammer:

I have one more request for a document.

I believe the folks over in the Futures Thread recently discussed this document. Unfortunately, I do not think Jack completed all parts to the document (if memory serves). However, you may find some of the missing parts posted in that thread. Start at the last page and move backwards. I think the conversation occurred within the last week.

Hope that helped.

- Spydertrader

 

[Spydertrader]

Final Universe Update

The following stock has been ADDED to the Final Universe List as of 2005-11-01: BOOM.

- Spydertrader

 

[bdolnik]

Tons of buy signals today, huh? I bought SNHY @ 24.99

 

[Spydertrader]

Quote from bdolnik:

Tons of buy signals today, huh? I bought SNHY @ 24.99

The system provided many profitable signals today. As I type, your SNHY trade continues to remain profitable - an excellent trade thus far. I hope others made money today as well. Keep up the great work.

- Spydertrader

 

[Spydertrader]

I hope many of you enjoyed today's price action with respect to Hershey Equities. The system triggered a number of signals which proved profitable. Congrats to those traders who traded today's signals.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=886124>

 

[sempiternal]

I have downloaded 3.0.0v chartscript in to my wealth-lab but when I run it on my list of symbols the chartScript comentary that list the volumes doesn't show up any where that like it does when I use the web page version it shows up below the chart.
Is there any way I can activate this to show up in the Wealth-lab installed on my computer.

I have been using your system since june with good success. Thank you very much for sharing it.

The one difference I use is for setting my stop loss. I set my stop at the low of the last 15 minute bar prior to the entry it seems to work well.

 

[Spydertrader]

Quote from sempiternal:

Is there any way I can activate this to show up in the Wealth-lab installed on my computer.

When using Wealth-Lab Developer, the Dry Up Volume numbers appear in the Commentary Window. Activation of the Commentary Window occurs by clicking the Commentary Window Icon at the top of the WLD Menu Toolbar (the icon resembles an old 1950'2 era microphone). One can also activate the Commentary Window by holding down the CTRL + ALT + C keys on the computer keyboard.

Hope that helps.

- Spydertrader

 

[acesheet]

SpyderTrader said:

Excellent results thus far Acesheet - especially since you only trade these methods part time. Thanks for sharing. You may experience significant improvement in your win / loss percentage if you incorporate a few small augmentations to your methodology. In the first few posts made by Nwbprop (See beginning of Old Journal), he used trendlines to determine where price fell within the overall trend. Avoiding the purchase of a stock with a price at or near the upper channel boundary, often saved me from experiencing a reversal. Once I began regularly using this practice, my losses decreased in number. In addition, reducing the the total amount of each loss improves your profitability. You might test various risk parameters in order to reduce the overall amount of each individual loss. If you can reduce your average loss to a level of 2% or less, you can see the net effect of increased overall profitability. A 1% improvement might not seem like a whole lot at first, but over time, the dollars do add up.

Again, great trading so far, and keep up the excellent work. I look forward to your future updates.

Thanks SpyderTrader. I'm really impressed with this system. It really has a lot of potential. One thing that I noticed about my results is that I seem to have a lot more trades than you had posted. For example you had posted 61 trades after 42 weeks and its only taken me 15 weeks. That seems a bit odd, although what I'm doing is a little different than what you were doing. The trade setup is basically the same, however.

Do you think using the channels as a guide to when a trade might be too risky would account for this?

Some of the differences that I'm doing are:
1) I calculate DU levels as a percentage of the 60 EMA of volume and FRV as a multiple on the 60 EMA of volume. I based my multiples of the 60 EMA after doing some statistical work on all the stocks you had on deck from the final universe and the hotlist in the last journal.
2) I also use 11:30 AM pro rata FRV as my breakout buy trigger. I use the stochastic and MACD histogram filters with + price as filters on the buy. (its 0.308xFRV)
3) I don't use a final universe or hotlist, I simply scan my entire universe of fundamentally culled stocks for Rank and for DU nightly. Its about 200 stocks or so that meet various earnings and RS criteria (I'm using Reuters Powerscreener and MSN's screener). I update this fundamentally culled list on a weekly basis.
4) I'm allowing myself 5 open positions at once. Positions are equally sized at $1000 each. I expect to increase the position size as the account grows (paper right now).

I do have to work on loss limiting using some sort of initial stop. I know how powerful that 1% can be. Your success rate is phenominal as well and that sure doesn't hurt.

Thanks for the encouragement.

- ace

 

[Spydertrader]

Quote from acesheet:

Do you think using the channels as a guide to when a trade might be too risky would account for this?

Thanks for detailing how your methods differ from those I have used in the Journal. As always, I appreciate the contributions you have made.

A few items come to mind which may explain why you have experienced significantly greater numbers of signals with your slightly different methods. Although I posted the results for one full year of trading, I did not trade every week. I frequently travelled to Florida, The Dominican Republic, and a few other states during the year I posted trades. In addition, I used Average Dry Up Volume in the beginning of the Journal. Using Average Dry Up Volume as an entry trigger produced significantly fewer trade signals than Low Band Dry Up Volume. Also, I only occasionally posted short trades generated by the system as the Journal focused primarily on the long side of Jack's Methods. Throw in my decisions to 'override' the system based on what I thought I knew, and you can see how the number of trades I did not take begin to add up significantly.

Irrespective of the iteration used to trade, the same goal remains in effect - making money. As long as your methodology continues to provide you a level of profitability you enjoy, no need to focus on slight differences in the number of trades. A small adjustment here or there should improve your overall profit. Once again, keep up the great work. You (and the many others who do not post as frequently) remain an example to those traders only in the initial stages of beginning their own journey towards profitability.

I look forward to your future updates.

- Spydertrader