Technical Strategy

romanus · Nov 2, 2008

Quote from Neoxx:

Thanks, Romanus. So there's more depth than I realized.

I thought it was simply a case of tapes forming traverses, which, in turn, form channels. I hadn't realized that traverses could occupy different fractals. Having missed the traverse annotation of the blue channel, I assumed that Spyder was referring to traverses as faster fractal traverses, and while I've not been following the IR thread, I had always construed his admonitions for students to avoid 'jumping fractals' as jumping from traverses to tapes.

10/31, beginning 12:50 OB: blue trendlines represent "5 min ES Traverse Level fractal" Traverse, NOT the channel. Olive, orange and olive again trendlines represent traverses on faster fractal (2min YM) as they don't have the completed sequences required of "5 min ES Traverse Level fractal" Traverse.

romanus · Nov 2, 2008

Quote from charts:

... I believe that the 1455 ends the (whatever) green faster traverse sequence, not the blue one ...

14:55 is return to dominance and 15:05 is signal for change in blue "5 min ES Traverse Level fractal" Traverse (Peak Volume)

palinuro · Nov 3, 2008

Quote from bi9foot:

Spydertrader described the method to calculating pace lines in this post.

The pace levels I posted are calculated using the method described in that post.

I believe due to limitations in TN Spydertrader uses a different method. From my investigations, it looks like 1600 bars are used since I can generate the same pace levels as TN.

I cannot speak for Palinuro's code since I have not idea how it is calculated.

I use the pace values calculated using the method described by Spydertrader. I calculate new values about one a week.

Just to clarify, I use the same method, as can be seen in the code. But as I indicated before, the number of bars used depends on how many you load into your NT chart, so it's up to you. The values are recalculated each day.

Edit: you also control the start and stop times, so whether or not to include the opening and closing bars, etc.

- palinuro

Neoxx · Nov 3, 2008

Quote from palinuro:

Just to clarify, I use the same method, as can be seen in the code. But as I indicated before, the number of bars used depends on how many you load into your NT chart, so it's up to you. The values are recalculated each day.

Edit: you also control the start and stop times, so whether or not to include the opening and closing bars, etc.

- palinuro

You probably already told me that but I failed to take it on board.

I'd only been loading 3-days of data onto my charts in an effort to stop NT slowing down/freezing up, so no wonder my AutoPace lines were skewed to the extreme short term.

Thanks for the repeated clarification.

Neoxx · Nov 3, 2008

Quote from romanus:

10/31, beginning 12:50 OB: blue trendlines represent "5 min ES Traverse Level fractal" Traverse, NOT the channel. Olive, orange and olive again trendlines represent traverses on faster fractal (2min YM) as they don't have the completed sequences required of "5 min ES Traverse Level fractal" Traverse.

Thanks for the added insight, Romanus.

I'm not going to pursue this particular avenue, because I think Jack's whole intention with this approach was to eschew semantics and mechanical analysis, instead focussing attention on holistic analysis, perceptual learning and unconscious mind differentiation.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2104533>

Neoxx · Nov 3, 2008

Here follows a short distillation of some relevant posts:

MIND BUILDING

Drilling achieves focus and crystallization. There are six crystal forms. One thing that makes these forms show uniqueness is contamination by foreign objects. I do not want to see any more foreign objects in this multilevel crystallization building block processâ¦

â¦We will not use tabs to note a rule set because we are not building a rule set, we are building the mind instead. We tab aha's and religious experiences. we tab when something we are drilling on goes from short term memory to long term memory. If something doesn't stick we just need more drills.

BINARY VECTORs

The binary vector approach is intentional. It keeps us in the non probabilistic state. You MUST understand the difference between simple binary and binary vector. By using binary vector we add another dimension to the elements we measure.

Vectors give magnitude and direction instead of just being scalar quantitiesâ¦

â¦(See information theories respective main branches of probabilistic and non probabilistic. Wiki is a good starting point for those who can handle higher maths like quant stuff.)

VOLATILITY and OVERLAP

As we now ease into the overlap and volatility, we get a cluster of price data elements that help inform us of the relationship of bars during the traverse trending and we begin to see how the dominant and non dominant have their flavors and personalities. All of this knowledge translates into technique as time passes and the differentiation of the memory increases.

It will soon be like knowing who is the composer for any pianistic composition and further who is playing it and what the chamber in which he plays is like as wellâ¦

â¦We sit on the forming bar. we look back to see how its going relative to the prior bar and we keep track of how long the forming bar is and where it is forming relative to the three boundaries you are ALWAYS ANNOTATING.
AS WE LOOK AROUND AT THINGS WHILE being THE BAR, WE KNOW WE KNOW WHAT IS GOING ON.

â¦Volatility is measured in tics and there is a go/no go aspect of using volatility as a gate in the ATS. When a given level of volatility is reached, after a given skill we trade the volatility as limited capacity (pace gated) internal trading on the envelope of the overall market capacity.

â¦By having the pair of overlap and volatility rolling we will be grooving on "adjacent" bar "knowledge acquisition".

STILL TO COME

My plan over the weekend it to dump two textual themes into the thread because they fit into the name "Technical Strategy".

One will emphasize "People" and the other will emphasize the "deliverables" a name for the four overriding themes required to have any system of trading. I will contact a couple of people who volunteered to zip or do something to them so they can be fit somehow in to the ER attachment limitations.

Neoxx · Nov 3, 2008

So with the volume vocabulary, we had increasing/decreasing to express the magnitude, but also connected V to P and introduced a directional component via the colour coding, and refined the information further with the use of peak, trough and the descriptors of trendline bounces and gaussian shifts.

So with volatility, we can start with increasing/decreasing, but would then need to add a directional component in order to go from simple binary to binary vector. So perhaps that means that colour-coding would be useful for volatility too??

Neoxx · Nov 3, 2008

Quote from Jack Hershey:

...This chart has carryover included and it has a lot of pepe script. You can see that Pepe script gives a lot of logging information...

...Pepe scripting. What if all remarks columns were there? You have great logging!!!

Neoxx · Nov 3, 2008

Another compilation of comments from the earlier parts of the thread...

LOGS, MADA and MIND BUILDING

â¦What you view at any time is only 10% of your PERCEPTION. IF you do not build your mind purposefully, you have a bad situation to deal with BECAUSE YOUR MIND IS NOT CONTRIBUTING THE INFERENCE that is required to match up with the sensory inputâ¦

â¦The new point 3 requires a point 1, of course. the beginner uses the old point 1 since it is available. This is in coding ATS's is what is called a look back decision. The blue channel is precluded for this reason since there would not be a look backâ¦ So for the boot camp I will introduce a concept and a technique of logging the distance back the non-stationary window goes back. It will be a checkmark in the left margin of the logâ¦

â¦Naturally, you would do a distribution of the usage of the V vocabulary and the P vocabulary and determine the cross correlation and the statistical significance. Maybe notâ¦

â¦At some wonderful point, the emphasis of trading moves from one part of the log to another. It is like the established skill sets get differentiated and it is time, because your mind demands it, to differentiate in the mind places that have sprouted in parallel with the basic trunks already strengthened in by structural shortcuts in synaptic interconnectednessâ¦

â¦The rapidity and diversity of paths keep the "use it or lose it" phenomena very operational as more and more of the training wheels come off. Your original vocabulary gets to be a multi-use vocabulary and it becomes much more differentiated as well. It is still all there and in use AND the balance of connectedness makes you able to withstand more and more G forcesâ¦

â¦ the log row above the row you are filling in at any time. There is always a referent value for you to deduce a vector and magnitude fromâ¦

â¦You have to be on the right side of the market to make moneyâ¦ Binary. It is NOT a continuum of any sort. It is being told by the market that one side is the side until further noticeâ¦

â¦By keeping all of MADA on a binary basis, it is NOT possible to write down "I do not know at this time" in the volume column, the Price column, the MODE column, the Remarks column, the D column. If you know, you are able to appreciate and have gratitude for where you ARE. It is a BE DO HAVE orientationâ¦

â¦We are not in boot camp to be put in any position that you do not know that you know. It is a BINARY boot camp and not a probability or betting boot campâ¦

â¦Your questions are what you will get the answers to by GETTING YOUR MADA AND YOUR LOG UP TO GRADEâ¦

â¦YOU DO THE WORK TO GET THE JOB DONEâ¦

â¦We are not making up stupid rules or rule sets. We are building minds, more unconsciously than notâ¦

â¦As you work, and more and more remain restful and competent, you will begin to notice when the parasympathetic modus gets flaky. Here you see tinges of your past types of efforts creeping into the picture. If and when this is a conscious feeling, then bear down on adding more "color" to your columnsâ¦

â¦Iterative Refinement is a good place to go to pick up a print of the day for debriefingâ¦

EXERCISES

â¦In a couple of days we can use the boot camp to go through whole days in about 40 minutes as a drill in logging a whole day in 40 minutes using MADA at a fast rep rateâ¦

â¦We will use each chart that you prepare six more times; once for each level of skills and knowledgeâ¦

â¦We will be redoing the days of boot camp 7 times each as drillsâ¦

â¦Soon we will have all charts annotated and their respective logs. At that time we will be trading as advanced beginners, then beginner internals. We will repeat logging for each level for all charts from chart 1 onwardâ¦

PEPE SCRIPT

â¦If the lower right data block had the last three bars of data for P, V comparison you can see how the binary comparison column to column would come into play. If you trade at intermediate or above you immediately recognize how to use the binary comparison as the forming bar data changes. The use of percentages instead of an absolute is also there to give a relative feel for pace change if it is in the windâ¦

jack hershey · Nov 3, 2008

I have been attempting to post several documents I had prepared for doing the 30 day boot camp.

They are portrait or landsape 2007 Word documents. My post dissapears when a message stating the attachment is not the type ET accepts appears. doc is listed on the message as being acceptable. My word documents were saved with the .doc extension on them to the best of my knowledge.

Anyone knowing the workaround for this problem, please pm me.