Spydertrader's Jack Hershey Futures Trading Journal

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Quote from cnms2:


I don't use IF1 IF2 APA. I look for BOs and FBOs of channels, tapes, formations, and bars.

I don't think there is a set of rigid rules you could follow. Besides a few basic concepts, this method seems to me more about putting you in the right state of mind to see what's happening and to act accordingly.
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Thanks cnms2. I had a pretty good idea of how you enter from previous charts you had posted. I was just wondering about the reversals. I figured it was probably based on similar criteria as entries Actually IF1/IF2 are breakouts (close and bar high/low) if my understanding is correct. :D

I am certainly am not looking for a set of 'rigid rules' but do feel a more formal approach for the DA part of the MADA equation would help with discipline. Not sure if you saw what I wrote about being an early or late trader. I am an early trader I am thinking that by forcing myself to wait for tape BO, formation BO, IF1, IF2 - whatever - it will force me to be a later trader but also a more disciplined consistent trader.

So for example, monitoring detects intrabar shift in gaussians so possibly dealing with a FTT. Wait for 2minYM tape RTL BO or potential FTT bar BO to enter.

So to re-iterate not looking for rigidity just considering more formal procedures for converting analysis to action. Trying to keep out of the rabit hole which can suck you in if you are particularly sensitive to the intrabar ebb and flow:)

Cheers.
 
Although I don't use IF1 IF2 APA, I think I understand it correctly. It uses only ES' price action, and if executed correctly can't fail. In my opinion, if you learn to wash, the IF1 IF2 APA is practically riskless. It would be even more so if instead of reversing with APA you just exit (no loss) an wait for the next bar. I've never done the "learning to wash" drill recommended by Jack, but it is high on my list of priorities. It is also of paramount importance (as it is for all of JH's method) to pay attention to the market's pace (volume) and stay out when this is bellow your level of expertise.

Regarding the early / late trader, in my opinion it is important to be consistent: don't change your style from one trade to another based on your guess or hope that the next trade will be longer or shorter. If you're an "early" trader both your gains and losses will be smaller, if you're a "late" one both will be larger. If you're an "early" trader you might have a better wins / losses ratio.

It is more important, in my opinion, to properly execute your sweeps (coarse, medium, fine) reading the market signals correctly and reacting accordingly. This doesn't mean to trade ES by proxy: based only on YM's signals. When ES 5 min shows change (coarse) you go to YM 2 min (medium). If this also indicates change you go to finer tools. I currently don't use any finer tools, but once I have my current level down cold, I'll try to gradually integrate the other tools too.
Quote from BlowFish:

Thanks cnms2. I had a pretty good idea of how you enter from previous charts you had posted. I was just wondering about the reversals. I figured it was probably based on similar criteria as entries Actually IF1/IF2 are breakouts (close and bar high/low) if my understanding is correct. :D

I am certainly am not looking for a set of 'rigid rules' but do feel a more formal approach for the DA part of the MADA equation would help with discipline. Not sure if you saw what I wrote about being an early or late trader. I am an early trader I am thinking that by forcing myself to wait for tape BO, formation BO, IF1, IF2 - whatever - it will force me to be a later trader but also a more disciplined consistent trader.

So for example, monitoring detects intrabar shift in gaussians so possibly dealing with a FTT. Wait for 2minYM tape RTL BO or potential FTT bar BO to enter.

So to re-iterate not looking for rigidity just considering more formal procedures for converting analysis to action. Trying to keep out of the rabbit hole which can suck you in if you are particularly sensitive to the intrabar ebb and flow:)

Cheers.
More...
 
Recently I have been finding the ES more 'sufficient' on the whole. I'd like to think this represents progress:). I actually maximise my ES window quite a lot of the time now (I like big as my eyes get worse!).

I do glance at the YM when I anticipate end points or to confirm a stall is in fact a stall (often much clearer on YM as you get a retrace on non dom volume).

I would at some stage like to fold in finer tools but am in no rush. I have to say I'd rather get to grips with DOM / T&S rather than STR/SQU. I am unclear how STR/SQU can provide insufficient information. As far as I can see it either supports what you have anticipated or doesn't. I guess if it doesn't you go deeper.

Cheers.
 
A very sincere thankyou to you all and best wishes to you and your families this Thanksgiving Day.

What moved me from where I was to where I'm going, was the recognition that JHT eliminates the problem of chop - anathema to the edge trader. The attachment is self-explanatory and I hope helpful. As always, if you wish, please correct anything I've said, with vigour.

lj
 

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:) :) :)
Quote from Grob109:

... There are a lot of carpenters in the world with 20 years expereince and that experience is the first year repeated 19 more times. This is what ET person often typify in terms of experiences. ...
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Here is a diagram that I drew of what my understanding of IF1/IF2 and APA is. The drawing is based on a long orientation.

I am not entirely sure if after APA one goes exclusively into IF1/IF2 mode or if APA is an option depending on entry point.

In the drawing I have a sequence of APA -> IF1/IF2. However, after the APA action one could potentially go in APA again since the reversal entry point (in my drawing) is going to be crossed before reaching the close of the prior bar.

Experts that have used or use APA/IF1/IF2 want to chime in.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1688680" width="400">
 

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Quote from cnms2:

Although I don't use IF1 IF2 APA, I think I understand it correctly. It uses only ES' price action, and if executed correctly can't fail. In my opinion, if you learn to wash, the IF1 IF2 APA is practically riskless. It would be even more so if instead of reversing with APA you just exit (no loss) an wait for the next bar. I've never done the "learning to wash" drill recommended by Jack, but it is high on my list of priorities. It is also of paramount importance (as it is for all of JH's method) to pay attention to the market's pace (volume) and stay out when this is bellow your level of expertise.

Regarding the early / late trader, in my opinion it is important to be consistent: don't change your style from one trade to another based on your guess or hope that the next trade will be longer or shorter. If you're an "early" trader both your gains and losses will be smaller, if you're a "late" one both will be larger. If you're an "early" trader you might have a better wins / losses ratio.

It is more important, in my opinion, to properly execute your sweeps (coarse, medium, fine) reading the market signals correctly and reacting accordingly. This doesn't mean to trade ES by proxy: based only on YM's signals. When ES 5 min shows change (coarse) you go to YM 2 min (medium). If this also indicates change you go to finer tools. I currently don't use any finer tools, but once I have my current level down cold, I'll try to gradually integrate the other tools too.
More...

Doing wash trades is useful to get the sweeping routine imprinted. I plan on practicing them when there's low volume in order to improve my trading during that time of the day.

The most important thing however is to learn how to hold during large moves. This is the time where money velocity is fastest and where holding a position is safest, yet paradoxically this is also the time where I'm most eager to reverse.

What I'm practising at the moment is to add contracts to my position on point 3s, the moments where volume picks up after a retrace and break outs. The basic idea behind this is to increase leverage when risk/reward is best. In order to do this properly I have to learn how to hold first.

The ultimate goal would be to remove the early/late trader personas from my psyche and to adequately peform the action the market asks me to.
 
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