Spydertrader's Jack Hershey Equities Journal

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Quote from Spydertrader:

One afternoon in the Autumn of 2003, I logged into the Paltalk Chat Room in order to test the software. As I logged in, only one other name appeared in the Chat Room in addition to my own: Jack Hershey. Over the next thirty minutes, Jack and I discussed a variety of topics. Flying Gliders, His vision for creating "pockets of wealth," Automation of the Hershey Equities Method, and the story of his journey trading the markets to name but a few of the topics covered. Jack asked only one thing of me. He requested that anything I developed pertaining to his methods, I freely share with anyone with an interest. "No proprietary stuff."

Without hesitation, I promised Jack I would do as he requested: help others to learn as he once assisted me. My viewpoint on sharing methods stems from my real world experience with sharing "best practices" in the business world. I freely shared my formula of success with anyone with an interest. Over the years, I arrived at the conclusion that even when I provided a detailed road map to success, the vast majority of people would not do the effort required to follow the path to success. Out of every ten people, One individual will determine they already have achieved a level of success, and require no additional improvement. Two will dismiss out of contempt that which they didn't understand. Two will actually evaluate the plan, but determine arbitrarily, "the plan won't work, or won't work for them." An additional two begin the journey but fail to travel beyond the initial first few steps. Two more progress a great deal along the path to success, but allow an outside influence to take them off track in some fashion. Out of the ten, we have one individual remaining, that possessed the required motivation, willingness to improve, and work ethic required of a successful individual. I have witnessed the same paradigm repeat over and over again within a community of traders.

As a result, I continue to share my methods for trading the Jack Hershey Equities Method knowing full well the vast majority of individuals reading will fail to make the journey.
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Thanks for sharing, but I am one those persons who will share trading ideas upto a point then I have to stop, cause really successful trading system should not be shared in the public forum or it it will stop working in the future.
 
Okay, so based on your comments, if you found something that would make this a "really successful" system, You would not post it. correct?

One has to wonder if you would go so far as to offer posts that would move the system development in a negative direction in that case?

For myself, I have my own reasons for helping people. I have looked into the idea that edges can be arbitraged away, and find that although the possibility exists, this is not the only way for a systematic edge to disappear. In fact, periodically every statistical edge that I have investigated disappears, and without warning appears again. If you stop and think a moment, it is just common sense. Trading after all, is done by humans who have a limited life, and whose interests change over time. Further the economic landscape changes periodically including elements like tax law and composition of markets themselves. It is just my opinion of course, and I encourage others to do their own thinking on the subject, but I have come to the conclusion that the popular concept that a system will stop working if others find out about it is an "urban myth", nothing more. Thanks, Lefty
 
Quote from Lefty62151:

Okay, so based on your comments, if you found something that would make this a "really successful" system, You would not post it. correct?

One has to wonder if you would go so far as to offer posts that would move the system development in a negative direction in that case?

For myself, I have my own reasons for helping people. I have looked into the idea that edges can be arbitraged away, and find that although the possibility exists, this is not the only way for a systematic edge to disappear. In fact, periodically every statistical edge that I have investigated disappears, and without warning appears again. If you stop and think a moment, it is just common sense. Trading after all, is done by humans who have a limited life, and whose interests change over time. Further the economic landscape changes periodically including elements like tax law and composition of markets themselves. It is just my opinion of course, and I encourage others to do their own thinking on the subject, but I have come to the conclusion that the popular concept that a system will stop working if others find out about it is an "urban myth", nothing more. Thanks, Lefty
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He shared his trading system with few, then it was revealed to public by sobs (including variations). Now he had to close two funds with huge loss.
 
Quote from manz66:

Thanks for sharing, but I am one those persons who will share trading ideas upto a point then I have to stop, cause really successful trading system should not be shared in the public forum or it it will stop working in the future.
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Again, we will have to agree to disagree on this very point. Jack Hershey developed this system in grad school back in the 1950's. He has shared this sytem with countless individuals since that time, yet the system continues to work. Jack has posted his methods via USENET since 1997 (according to my research), and on two different MSN web sites since 2001. Jack's level of posting here on the ET web site can only be described as prolific. Still, the system continues to work. Countless other web sites contain archives of Jack Hershey posts, and other web sites teach similar methods (http://www.CANSLIM.net) as the ones delineated in this journal. Again, CANSLIM and The Jack Hershey Equities Method both continue to produce profitable trades after years of sharing in public forums methods to successful trading.

Certainly, the ability to form one's own opinion entitles the individual to share openly (or not) their successful trading methods. However, a conclusion that suggests sharing in a public forum results in the detriment of trading profits fails in the face of the mounting body of evidence (at least with this methodology). By your own admission, "a really successful trading system should not be shared in the public forum or it will stop working in the future." Then, why bother to read any public discussion regarding methodology? Aren't you experiencing a colossal waste of time by doing so? Might the methodology fail before you have learned the system? before you have even finished reading?

The decision to withhold a trading methodology or share publicly one's methods remains a matter of individual choice. While we may disagree on the results of such a choice, I begrudge no one their decision, and continue to assist, in any way possible, those interested.
 
Sevens - Ones - Zeros
PACT - DRIV - DDN
NGPS - UTHR - CMTL
ULCM - CRDN - MDRX
CIB - UNA - CTSH
ARTI - DECK - HUM
CREE - SINA - LCAV
PHS - EAGL - ALDN
TNP - FFIV
AMX - JUPM
LCAV - MRVL

Hotlist

PACT
NGPS
ALDN
JUPM
FFIV
SINA
DECK

Watch List

IDSA - DU Cycle
BCSI - DU Cycle - DU5 - DU10
LWAY - DU Cycle - DU5 - DU10 - DU20
GMAI - DU Cycle
TRMM - DU Cycle - DU5 - DU10
EVCI - DU Cycle - DU5 - DU10
FFIV - DU Cycle
ENWV - DU Cycle
HANS - DU Cycle - DU5
SINA - DU Cycle - DU5 - DU10
BAMM - DU Cycle
DECK - DU Cycle
NTES - DU Cycle - DU5 - DU10
NVEC - DU Cycle - DU5
LSCP - DU Cycle
DPTR - DU Cycle - DU5
LIFC - DU Cycle - DU5
ANIK - DU Cycle

SRVZ Wealth Lab Equations - Dry Up

BAMM
ENWV
MKTW

G33M4K Score for the above Stocks

BAMM - 0
ENWV - 3
MKTW - 2

Gallas2 "Keep an Eye on These" Stocks

NAVR (Attached)

*** DECK has been added to our Final Universe List

(VSEC, IDSA, HRT, LWAY, NVEC & NGPS have float outside normal parameters)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=641415>
 

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Quote from Spydertrader:

Again, we will have to agree to disagree on this very point. Jack Hershey developed this system in grad school back in the 1950's. He has shared this sytem with countless individuals since that time, yet the system continues to work. Jack has posted his methods via USENET since 1997 (according to my research), and on two different MSN web sites since 2001. Jack's level of posting here on the ET web site can only be described as prolific. Still, the system continues to work. Countless other web sites contain archives of Jack Hershey posts, and other web sites teach similar methods (http://www.CANSLIM.net) as the ones delineated in this journal. Again, CANSLIM and The Jack Hershey Equities Method both continue to produce profitable trades after years of sharing in public forums methods to successful trading.

Certainly, the ability to form one's own opinion entitles the individual to share openly (or not) their successful trading methods. However, a conclusion that suggests sharing in a public forum results in the detriment of trading profits fails in the face of the mounting body of evidence (at least with this methodology). By your own admission, "a really successful trading system should not be shared in the public forum or it will stop working in the future." Then, why bother to read any public discussion regarding methodology? Aren't you experiencing a colossal waste of time by doing so? Might the methodology fail before you have learned the system? before you have even finished reading?

The decision to withhold a trading methodology or share publicly one's methods remains a matter of individual choice. While we may disagree on the results of such a choice, I begrudge no one their decision, and continue to assist, in any way possible, those interested.
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Amen, brother. :)
 
Okay:
I have learned something important from you. First, I did not know that Jack used this "method" to manage a fund or fund(s). Also I did not know that the fund(s) absorbed losses and shut down. If that is true (I have no reason to assume otherwise), then there are many possible reasons why a profitable strategy could show loss and even have to shut down. Most folks would assume that a profitable strategy would like the "goose that laid the golden egg". Nothing could be further from the truth. Actually the profitablility of a strategy depends in large part on numerous factors including market liquidity, execution skills, capitalization, hedge requirements, etc. This is in fact why successful funds do "whatever it takes" to keep good managers on their team. Personally I like what I know of the basic concepts. In fact, I am sure that with some modifications, there are several funds that use a version of this system right now. As with most things, the devil is in the details. This is why I have expressed questions about the way to determine both the "dry up" and "first rising volume" levels. Anyway, I am wasting your time. I appreciate your providing an honest reply. Best Regards, Lefty
 
Quote from Lefty62151:

Okay:
I have learned something important from you. First, I did not know that Jack used this "method" to manage a fund or fund(s)...Lefty
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lefty, he was refer to somebody else, Jack called himself an 'amateur' thus there was no possibility of him to manage OTM.


Re: Look at Richard Dennis of "Turtle trading system fame"

Quote from manz66:

He shared his trading system with few, then it was revealed to public by sobs (including variations). Now he had to close two funds with huge loss.
More...
 
Thx Nkhoi,

Appears you and I were making the same clarification at the same time... I'll remove my post

Regards
G33M4K the Newb
 
Quote from Lefty62151:

Okay:
I have learned something important from you. First, I did not know that Jack used this "method" to manage a fund or fund(s). Also I did not know that the fund(s) absorbed losses and shut down.
More...

For clarification, Richard Dennis had to "shut down his funds after taking on large losses" according to manz66. Richard Dennis developed the Turtle Trading Method. Jack developed his system - a precursor to the one we currently trade - as a Grad Student in the 1950's after one of his professor's enlightened him to the possibilities of the stock market. Jack has traded profitably ever since revising his system somewhat with the invention of additional tools (Tc2000 vs stocktables.com) and / or development of superior indicators (i.e warden's Balance of Power). Perhaps, DKM can further clarify this, but I don't believe Jack actively managed other people's money. Rather, Jack knew many brokers and funds that "piggybacked" off his trades. While this clarification doesn't change the premise of your post, I wanted to clarify any misunderstandings.

- Spydertrader
 
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