Spydertrader's Jack Hershey Equities Journal

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Quote from nzbryant:

Spyder

When you look for entry confirmation (using volume, stoch, and MACD), what intraday bar length do you use - 30 minute?
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I monitor each stock using a thirty minute chart. Once the system triggers a signal showing price improvement (and after checking both MACD and The Stochastic Indicator), I look at the ten minute chart. I want to see improving price on the ten minute chart as well as the thirty minute chart before entering into a long position - a basic "stairstep" type of look.

Each trader has to determine which timeframe (Jack called them fractals) works best for their own particular style. An old habit leftover from my days trading the Exchange Traded Funds (DIA, QQQ & SPY) caused me to use the one minute chart when I first started to trade Jack's Methods. I didn't have the success I anticipated using the one minute chart. While reviewing some of Jack's older posts I re-read Jack's advice on the thirty minute chart, and as a result, I finally changed to the thirty minute chart, and have never looked back.

I still use the one minute chart (even with all the extra "noise") when trading other methods, but not these methods.

I hope that helped.

- Spydertrader
 
Quote from nzbryant:

Thanks. Off-topic, but what other methods/securities do you trade?
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While waiting for a signal from The Jack Hershey Equities Method, I trade a "Gap Open" Method focusing on large (10% or more) gap open stocks (both long and short) for the first thirty minutes of the trading day. I'm looking for stocks that break the "most gaps fill rule" and continue to trend in the direction of the gap during the first thirty minutes. By continuously running a scan to detect these stocks during the first thirty minutes of the day, the number of possible candidates decreases, until by 10:00 AM, one or two candidates remain (some days none remain). Hold time for these trades range from 3 minutes (shortest) to 4 hours (longest) selling at the first pullback.

Another method I have traded in the past involves trading the ETF's in the direction of the daily trend. This method requires automation to trade effectively and improve profits, but I have yet to find the time to create an automated program to perform the tasks.

- Spydertrader
 
Interesting.

1. What software do you use to scan for gaps?
2. Why does the ETF method need automation? Seems simple enough to do manually(?)
 
Quote from nzbryant:

Interesting.

1. What software do you use to scan for gaps?
2. Why does the ETF method need automation? Seems simple enough to do manually(?)
More...

I used to use an online web site that provided free daily scans of gapping stocks both long and short, but unfortunately, they changed their business model to include pay for service. Since their fees far exceeded the value of the data they provided, and they expressed to me their unwillingness to negotiate a fair price for their services, I created my own scan for free. The attached file contains the two scans I use with the FREE Deluxe MSN Screener. Remember to sort the results by percent change in price. One could also use the Wealth-Lab Equations used by SRVZ (in addition to the Wealth-Lab realtime scanning feature) to create a customized gap scan. The last two signals in the SRVZ Dry Up and FRV equation chartscript (what I call test equations) contains stocks that gap open by 5% and 10%.

The system requires automation for speed of execution when certain things happen during particular trading days. You correctly observe that on straightforward trending days, speed of execution has little effect on profits. However, on days where the trend begins in one direction and reverses, speed becomes increasingly important. The more reverses that occur, the greater the role speed (and slippage) plays in the amount of profits derived. The system requires no "thinking" on the part of the trader. Simply follow the rules to the letter (without ANY variation) and the system remains profitable. Automation eliminates the human error variable and increases profits. In addition, automation would allow the program to run while the trader focuses on other trading methods.

- Spydertrader
 

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Quote from Spydertrader:

While waiting for a signal from The Jack Hershey Equities Method, I trade a "Gap Open" Method focusing on large (10% or more) gap open stocks (both long and short) for the first thirty minutes of the trading day. I'm looking for stocks that break the "most gaps fill rule" and continue to trend in the direction of the gap during the first thirty minutes. By continuously running a scan to detect these stocks during the first thirty minutes of the day, the number of possible candidates decreases, until by 10:00 AM, one or two candidates remain (some days none remain). Hold time for these trades range from 3 minutes (shortest) to 4 hours (longest) selling at the first pullback.

Another method I have traded in the past involves trading the ETF's in the direction of the daily trend. This method requires automation to trade effectively and improve profits, but I have yet to find the time to create an automated program to perform the tasks.

- Spydertrader
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I think you are going to like QCharts. You can load a quote sheet with NYSE/NASDAQ stocks with unfilled gaps.

Give it a shot.
 
Quote from Spydertrader:

While waiting for a signal from The Jack Hershey Equities Method, I trade a "Gap Open" Method focusing on large (10% or more) gap open stocks (both long and short) for the first thirty minutes of the trading day. I'm looking for stocks that break the "most gaps fill rule" and continue to trend in the direction of the gap during the first thirty minutes. By continuously running a scan to detect these stocks during the first thirty minutes of the day, the number of possible candidates decreases, until by 10:00 AM, one or two candidates remain (some days none remain). Hold time for these trades range from 3 minutes (shortest) to 4 hours (longest) selling at the first pullback.
More...

I'm sorry, I don't quite understand. Are you waiting for the stocks to fill the gap? Would it be possible to post a chart of one of your successful trades? If this journal is an indication, then there are many to choose from.

Another method I have traded in the past involves trading the ETF's in the direction of the daily trend. This method requires automation to trade effectively and improve profits, but I have yet to find the time to create an automated program to perform the tasks.
More...

Can you kindly elaborate on this?

As always, thanks very much in advance.
 
2005-02-15, Wednesday - Lists

I used RS and EPS Settings of 90 for the following lists

Stocktables.com
Sevens - Ones - Zeros
PTRY - ANTP - MIPS
MFLX - CMC - MEE
EPAY - WITS - MRVL
NTAP - MT - TIBX
FLSH - UTHR - LSS
VTIV - TRGL - IPS
PMTI - WWCA - USNA
NSS - HLIT - HOLX
MTEX - NGPS - ISRG
ADBL - SNDA - WCC

Wealth-Lab Chartscript/Manual
Hotlist

ANTP
NGPS
TRGL
MFLX
MIPS
ADBL
SNDA
PMTI

Wealth-Lab Data/Yahoo Data
Watch List

GOAM - DU Cycle - DU5
PACT - DU Cycle - DU5
ANTP - DU Cycle
TASR - DU Cycle
NGPS - DU Cycle
KEYW - DU Cycle
INTN - DU Cycle - DU5
ELOS - DU Cycle - DU5
BCSI - DU Cycle - DU5 - DU10
EBKR - DU Cycle
COGT - DU Cycle
HRT - DU Cycle - DU5 - DU10 - DU20
ULBI - DU Cycle
GMAI - DU Cycle - DU5
IDSA - DU Cycle - DU5 - DU10 - DU20
SINA - DU Cycle
HLIT - DU Cycle

Wealth-Lab Developer Data & Equations/G33M4K Equations
SRVZ Wealth Lab Equations - Dry Up (with G33M4K Score)

NGPS - 2

Eyeball
Gallas2 "Keep an Eye on These" Stocks

COGT (Attached)

Yahoo Data/G33M4K Equations
Dry Up Stocks with G33M4K Master List Score of Zero

TASR
INTN
ELOS
COGT
GMAI
ULBI
HLIT

Stocktables Sort/Yahoo Data/G33M4K Equations/
Test Culling Method with Score Hotlist

ELOS 0
HANS 0
KEYW 0
MT 0
SNDA 0
TRGL 0
EZPW 1
EXM 2
TOPT 2
MIPS 3
MFLX 7
PMTI 7

(GOAM, ANTP, NGPS, ANGO, HRT, IDSA, MT, HLIT, TRGL have float outside normal parameters)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=687677>
 

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