Spydertrader's Jack Hershey Equities Journal

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2005-04-25, Tuesday - Update

The following commentary pertains to the use of The Jack Hershey Wealth-Lab Chartscript Culling Methodology as described in previous posts. As previously indicated, this automated culling methodology remains in the development and testing phase. As a result, I have taken no trades based on these methods - irrespective of signal generation.

This morning I monitored two lists of stocks (14 total equities): Those equities finding themselves "In Dry Up" and and the remaining equities from this morning's Hot List (not "In Dry Up").

Dry Up Stocks

BCSI EXM GDP MFLX SIGM TRGL

Remaining Hot List Stocks

DCAI FORD MCRI PARL SNDA TOPT USG XXIA

Our system failed to generate any trade signals from the Dry Up Stocks as actual volume failed to exceed calculated "Low Band" Dry Up Volume prior to 11:30 AM for any equity in this group.

However, for the eight Remaining Hot List Stocks, we did see the generation of numerous possible trade signals - seven in all. I have outlined these signals below.

No Signal

PARL

The following equities triggered a trade signal when actual volume exceeded calculated "Low Band" Dry Up Volume. However, we eliminated them from further consideration based on the reasons outlined below.

No Price Improvement

SNDA TOPT XXIA

Negative MACD

USG DCAI

Two equities met all criteria at time of signal generation: FORD & MCRI.

The signal for FORD occurred at 9:31 AM, and price at time of signal generation held at $16.65 USD. MCRI triggered a signal at 10:29 AM when price held at $19.56 USD. Both equities met volume, price, MACD and Stochastic requirements.

First Rising Volume (FRV) targets

FORD - 386,981
MCRI - 359,292

Previous Day Scores

FORD - 7
MCRI - 1

I hope you find the above information useful.

- Spydertrader
 
..... and the original method with 7-0-1??

Did you stop trading it? If not could you please proceed with its reporting!

Thank you Helmut
 
Quote from hpeganz:

And, the original method with 7-0-1?? Did you stop trading it? If not could you please proceed with its reporting!
More...

I based the The Jack Hershey Wealth-Lab Chartscript Culling Methodology on a variant of the "Test Culling Method" posted previously. Over time, I began to notice certain differences between our "Default Methods" and those of the "Test Culling" Methods. Namely, the default methods failed to capture all available ranked stocks on any given trading day and present them for analysis. As a result, we missed opportunities to profit.

No, I have not ceased trading the original three list (7 - 0 - 1) method, but culling the original Stocktables.com list into three separate lists prior to the creation of a hotlist, is a tool Jack Hershey used to simulate score based on a stock's position in the Stocktables.com initial sort. Hence the sorting by "% volume change." Currently, we calculate Score through the use of various Wealth-Lab Chartscripts. As a result, creating a simulated score by observing list placement, is a step we no longer need to perform. In addition, we often miss a stock or two by creating three lists of ten (we stop picking after 10 stocks). The stocks we miss, often have rank, and occasionally trade eligibility.

By skipping the three list creation step, we capture all ranked equities making the stocktables.com initial sort. As a result, we increase our trade opportunities. Since eliminating the creation of the three lists does not fundamentally alter how we arrive at a list of stocks to trade (at worst it increases the opportunities), it only makes sense to use a time saving method over a method that no longer serves a purpose.

So you can see by example, using the three list creation for hot list formation yielded the following Hot List for today:

ANTP FORD ANIK MCRI SNDA

We would have removed ANTP and ANIK for Float and Average Daily Volume failures leaving us with only FORD, MCRI and SNDA in our Hotlist for today. Instead, we had a greater number of opportunities available to us today by using The Jack Hershey Wealth-Lab Chartscript Culling Methodology.

The decision to utilize any number of variants and methods of The Jack Hershey Equities Method remains one of personal choice. One should use methods that correspond to their comfort level and trading style. However, after seven months of posting different variants (3 lists, eyeball, srvz equations, manual calculation, test culling, etc.), why continue to track methodology that uses significantly more time to arrive at a similar result?

I anticipate additional changes to the methodology as we move forward based on discoveries made by individuals developing their own methods, after they review and analyze the Wealth-Lab Code, or after they read an updated opinion from Jack himself. I plan continued adaptation as a means by which I can continue to anticipate the receipt of profits.

As always, I welcome contributions to the Journal, and I encourage you to post whatever methods you choose to use. Feel free to post your three lists daily as well.

I hope you find the above information helpful.

- Spydertrader
 
Quote from Spydertrader:

So you can see by example, using the three list creation for hot list formation yielded the following Hot List for today:

ANTP FORD ANIK MCRI SNDA

We would have removed ANTP and ANIK for Float and Average Daily Volume failures leaving us with only FORD, MCRI and SNDA in our Hotlist for today. Instead, we had a greater number of opportunities available to us today by using The Jack Hershey Wealth-Lab Chartscript Culling Methodology.

- Spydertrader [/B]
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I am a little confused by this statement... are you stating that you no longer cull the hotlist for float and average daily volume constraints?

I understand removing the 7-0-1 sort, in fact, I removed this myself some time ago in order to create more opportunities with stocks that were in the same quality category (90% or 80% RS and EPS growth). But, I also cull out any stocks that don't fit the float, average volume, $10-50 price range, etc., criteria in an effort to reduce risk as Jack espouses.

Let me know if I misinterpreted your statement.
 
Quote from smtrader:

I am a little confused by this statement... are you stating that you no longer cull the hotlist for float and average daily volume constraints?
More...

I apologize for the confusion. No, I don't mean to imply that I no longer cull for float or average daily volume. By using the Jack Hershey Wealth-Lab Chartscript Culling Methodology we arrive at a greater number of Hot List stocks, and as a result, a greater number of trading opportunities. By creating three lists of sevens, ones and zeros, we limit the number of stocks we can include in our daily Hotlist to those ranked stocks appearing in our three lists of ten. Comparing the two methods of Hot List creation:

Three List Creation Hotlist

FORD MCRI SNDA

Hershey Wealth-Lab Chartscript Hotlist creation

DCAI FORD GDP MCRI MFLX PARL SNDA TOPT TRGL USG XXIA

Again, I apologize for the confusing comments, and trust you'll find my comments above more clear.

- Spydertrader
 
Spydertrader,
Somewhere before I read that you can do the culling you did with stocktables.com now with qcharts. As I started today a test with qcharts do happen to know how it is done, because I saw the hotlist feature but I am not sure if the hotlist could be altered etc.

Best regards, Helmut
 
Spydertrader,

Are you still using QuoteTracker for alerts? If so, do you come across situations where your alert doesn't fire for some reason? I would say about 1 in 20 of my alerts don't fire (that I have noticed). I'm working on it with QT, but was wondering if you have noticed the same.

Does anyone know of streaming charting programs similar to QT? I am not familiar with any of the alternatives, and QT is nice b/c it's free. :D

Thanks!
smtrader
 
Quote from hpeganz:

Spydertrader,
Somewhere before, I read that you can do the culling you did with stocktables.com now with qcharts. As I started today a test with qcharts do happen to know how it is done, because I saw the hotlist feature but I am not sure if the hotlist could be altered etc.
More...

I can't say exactly how one would go about this, as I have very little experience with Qcharts (less than 2 months). I can tell you how I use Qcharts. Start by creating a layout that contains Stock Symbol, EPS, Float, and Average Daily Volume. Once completed, save this layout for future use. From the Stocktables.com web site, download the data in excel format. Open the stocktables.com data and copy the symbols list. Then, open notepad.exe and copy those symbols from stocktables.com into notepad. Save the notepad file using whatever name you like, but use a .csv extension. Import this file into Qcharts. Sort for EPS, Float, and Average Daily Volume - deleting equities that fail to meet the minimum parameters. When finished, export the data into the same file into which you copied the Stocktables.com data and click yes to overwrite. Reopen this file and copy the file symbols. Paste the symbol list into a Wealth-Lab web site watch list, or create a new Data Source in Wealth-Lab developer. Run the Chartscripts.

Hope that helped.

- Spydertrader
 
Quote from smtrader:

Spydertrader,

Are you still using QuoteTracker for alerts? If so, do you come across situations where your alert doesn't fire for some reason? I would say about 1 in 20 of my alerts don't fire (that I have noticed). I'm working on it with QT, but was wondering if you have noticed the same.
More...

Yes, I still use them, but not as frequently as I used to. With the "Low Band" Dry Up Volume, signals often develop early in the morning. I just watch the screen and volume numbers rather than have a need to set an alert. I only set an alert now when I need to leave the screen for any length of time. I have had this happen on occasion, but not in quite some time. I simply attributed it to a bug in an earlier version of Quotetracker. If you find anything out, please alert us to any fix available.

- Spydertrader
 
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