Spydertrader's Jack Hershey Equities Journal
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Up to now I have got only DCAI with the required volume, but with an upgap of more than 5 % => no trade.
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Apart from the daily business, I have noticed a huge number of questions meanwhile concerning the method. Maybe I begin with some of them and add more from time to time. I know that I have to wait until Spydertrader will be back, but I also know that there are a number of other guys here who trade the method as well and therefore maybe can answer to some of these questions:
1) Whose idea was it to keep the "tenured" stocks in the final universe regardless of what sort of criteria they meet or not!? I mean does it really make sense to assume that if a trade happened to close out with a nice profit, that the probability for a future trade in the same stock is higher due to that fact?
2) From my point of view it seems to me that clearing the final universe on a daily basis makes more sense than cleaning it only once a month on a "jour fix". I think stocks that do not fulfill the requirements, have no right to stay within the list. Any arguments on that?
3) What happens to a position that reached the FRV on the close and therefore stays over night on the next day? I mean, if it doesn't make the FRV on day 2, is it a sell at the end of day 2 then or not? And what about day 3??
4) Formerly there was the list with the "sevens", "ones" and "zeros" as shown for instance on page #165. With what sort of program was this list made and how? Don't tell me with the excelsheet called "master template" as this doesn't work. It ends up with a weird error message.
5) On the same page, there were stocks with the "DU cycle method" listed. With what kind of program was this list made and how? Wealth-lab or Excel?
6) What's the criteria to keep a stock for more than the initial day (overnight) in general? Only the FRV volume or also MACD and/or Stochastics and if yes, on a daily basis or 30min chart?
I know, a lot of questions but as I told you to improve the method and get along with suggestions, it is necessary to first understand what's exactly going on.
Cheers
Odelys
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Apart from the daily business, I have noticed a huge number of questions meanwhile concerning the method. Maybe I begin with some of them and add more from time to time. I know that I have to wait until Spydertrader will be back, but I also know that there are a number of other guys here who trade the method as well and therefore maybe can answer to some of these questions:
1) Whose idea was it to keep the "tenured" stocks in the final universe regardless of what sort of criteria they meet or not!? I mean does it really make sense to assume that if a trade happened to close out with a nice profit, that the probability for a future trade in the same stock is higher due to that fact?
2) From my point of view it seems to me that clearing the final universe on a daily basis makes more sense than cleaning it only once a month on a "jour fix". I think stocks that do not fulfill the requirements, have no right to stay within the list. Any arguments on that?
3) What happens to a position that reached the FRV on the close and therefore stays over night on the next day? I mean, if it doesn't make the FRV on day 2, is it a sell at the end of day 2 then or not? And what about day 3??
4) Formerly there was the list with the "sevens", "ones" and "zeros" as shown for instance on page #165. With what sort of program was this list made and how? Don't tell me with the excelsheet called "master template" as this doesn't work. It ends up with a weird error message.
5) On the same page, there were stocks with the "DU cycle method" listed. With what kind of program was this list made and how? Wealth-lab or Excel?
6) What's the criteria to keep a stock for more than the initial day (overnight) in general? Only the FRV volume or also MACD and/or Stochastics and if yes, on a daily basis or 30min chart?
I know, a lot of questions but as I told you to improve the method and get along with suggestions, it is necessary to first understand what's exactly going on.
Cheers
Odelys
Quote from odelys:
Thank you smtrader for your help on the excel sheet and the commentary on the block trade issue. Should have left out the EZPW⦠Every day I am learning something new
The excel spreadsheet still doesn't work, even after pressing "FILL" for a second or third time. Anyway, I found a solution for me and that's what counts in the end.
I'm sorry I couldn't help more. I am glad you found a solution. I hope that the spreadsheet has helped you cut down some of your preparation time.
Correct me if I am wrong, but I think these are the SVRZ equations that SRVZ and Sypdertrader worked on some time ago. They use calculations that Jack originally used in TC2000. I tried to use them myself, but stocks were rarely in dry up using these formulae. I believe that up until recently, before his new culling methodolgy, Spydertrader posted which stocks were in dry up according to the SVRZ equations...
Jack mentioned a number of time that he sometimes broke his own rules for stocks that had performed well, but did not meet all the criteria of the Hershey stock selection, naming then "tenured" stocks.
I think you need to go to the first page of this post and start reading all the background information that Spydertrader has provided. Jack originally created the 7-0-1 listing method, and it has been Spydertrader's contention that he created it as a teaching method. It is a clever way of sorting the stocktables.com information into what best respresents the 3 most advantageous positions in a stocks cylce. The spreadsheet you mentioned was a macro that makosgu created in order to automate the process... he has many versions, but I believe the v.17 or 18 still works but only for listing 7-0-1's.
However, the fact that you ask this question tells me you have not read the background information. I would highly recommend that you do so, or you are wasting your time.
Quote from Spydertrader: DU Cycle is an average of the lowest volumes inside the last 5 cycles before breakout. DU20 should closely approximate the results obtained from The Wealth-Lab Hershey Chartscript (not exact, but close). The DU Cycle Method for Dry Up Volume calculation was obtained from an earlier version of either Max Gainz or Vorzo's Chartscripts on the Wealth-Lab.com web site.
If you review all of Spydertrader's posts, he has answered this a couple of times.
If you really want to know what's going on, go the the first page of this journal and read ALL of the background posts, webpages and information that Spydertrader provided.
There are a few questions I left out that may be better answered by Spydertrader.
Hope the rest helps!
smtrader
Thur. Test Culling Method
ANIK 5
CUTR 5
DCAI 7
ELOS 4
FORD 4
MCRI 7
MFLX 2
MIKR 0
PACT 5
PRFT 4
TRGL 0
UBET 0
USG 7
VDSI 5
XXIA 5
http://www.mbtrading.com/k9/K99.asp
ANIK 5
CUTR 5
DCAI 7
ELOS 4
FORD 4
MCRI 7
MFLX 2
MIKR 0
PACT 5
PRFT 4
TRGL 0
UBET 0
USG 7
VDSI 5
XXIA 5
http://www.mbtrading.com/k9/K99.asp
@smtrader
I read them all. But it's hard to remember everything as I read them all in three days...
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Another thing: I read that the methodology can also be traded on an end-of-day basis (with positive results, but not that positive as when trading intraday). Questions:
1) What is the requirement to take a trade on an end-of-day basis? Only the FRV or also MACD and/or Stoch?
2) Is an upgap allowed?
3) What's the time to hold the position (4 days like in the other version)? With the same profit target(s) and stop loss?
Actually, I took a trade on DCAI on the close of Wednesday and sold them out yesterday with a profit of more than 1 dollar or an amount of more than 4000 $. A nice trade and therefore I would like to know if it was against the rules or not...
CU
Odelys
I read them all. But it's hard to remember everything as I read them all in three days...
#############
Another thing: I read that the methodology can also be traded on an end-of-day basis (with positive results, but not that positive as when trading intraday). Questions:
1) What is the requirement to take a trade on an end-of-day basis? Only the FRV or also MACD and/or Stoch?
2) Is an upgap allowed?
3) What's the time to hold the position (4 days like in the other version)? With the same profit target(s) and stop loss?
Actually, I took a trade on DCAI on the close of Wednesday and sold them out yesterday with a profit of more than 1 dollar or an amount of more than 4000 $. A nice trade and therefore I would like to know if it was against the rules or not...
CU
Odelys
Then I apologize. I am surprised though, as it took me three months to read all of Jack's and other's usenet posts and websites listed below:
http://groups.msn.com/JackHersheysS...ion=get_threads
http://sputnick5.www8.50megs.com/
http://mycoolstars.hypermart.net/
http://groups.msn.com/ShortTermStoc...age.msnw?&pps=k
http://www.elitetrader.com/vb/showt...&threadid=23543
http://www.elitetrader.com/vb/showt...ershey+Equities
http://tinyurl.com/6956z
1) If FRV is reached by EOD all the same parameters must be reached, price appreciation, + MACD and Stoch above 75, etc.
2) If it gapped up 10%, I would suggest avoiding the trade, the risk is greatly increased.
3) Jack always taught 6-8 days max, in order to increase "money velocity". However, I believe when Spydertrader went back and looked at his Hershey trades, when he shortened the time period to 4 days max, his performance improved. This is a personal choice, and could differ from person to person. However, it does significantly increase the compounding effect (positively or negatively).
If DCAI reached FRV by EOD, had price appreciation from the prior day close, positive MACD, Stoch above 75 then you followed the rules. Congratulations on the winning trade!
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