Technical Strategy

New Machine


With enormous thanks to Ellis for all his assistance and expertise, here are the finalized specs:

  • Processor: Intel Core 2 Extreme QX9770 Yorkfield 45nm LGA775 3.2GHz 1600MHz FSB OEM EU80569XL088NL
  • Motherboard: Asus P5E3 Premium/WiFi-AP @n X48 1600MHz chipset P5E3PREMIUMWIFIAPN
  • Memory: Corsair 2x2GB matched pair DDR3 1600MHz 7-7-7-20 TWIN3X4096-1600C7DHXIN G
  • Video card: 1 x Gigabyte nVidia GeForce 8600GT 256MB GDDR3 2xDVI fanless 43W HDCP PCIe x16 GV-NX86T256H
  • Hard drive: Western Digital Caviar SE16 250GB 7200RPM SATA 3Gb/s 16MB WD2500AAKS
  • Hard drive enclosure: GUP-Japan Smart Drive 2002C
  • Optical drive: Samsung DVD±RW DL 22x 2MB LightScribe SATA black SH-S223Q/BEBN
  • Power supply: Corsair HX620W CMPSU-620HX
  • Power supply power cord: APC Power Cord, 10A, 100-230V, C13 to C14 AP9870
  • Case: Antec Solo quiet mini tower black 761345-18500-4
  • Case fan: 1 x Noctua 120mm NF-S12-800
  • Monitor: 2 x Dell UltraSharp 3007WFP-HC 30-inch widescreen 2560x1600 black LCD 210-17465
  • Keyboard: Logitech Media 600 920-000031
  • Mouse: Logitech G9 Laser 910-000173
  • Speakers: Dell AX510 Soundbar 520-10703
  • Microphone: Logitech Desktop Microphone 980240-0914
  • Processor heatsink: Thermalright HR-01 Plus
  • Heatsink fan: Noctua 120mm NF-S12-800
  • Fan duct: Thermalright orange 120mm Fan Duct for HR-01-775
  • Backside processor cooler: Thermalright IFX-10
  • Thermal material remover: ArctiClean Surface Purifier 2-PC-SET ACN-60ML
  • Thermal interface material: Shin-Etsu 1cc syringe X-23-7762
    Drive cables: 3 x 31" (79cm) SATA 3Gbit/s drive to motherboard latching cable, straight to right angle 30SR787YL
  • Backup drive: Iomega REV 120GB SATA internal drive 34184
  • Backup disks: Iomega 120GB Disk 5 Pack 34194
  • UPS: APC Back-UPS RS 1500VA/865W LCD 230V BR1500LCDI
    UPS Power cord: 4 x APC Power Cord 10A, 230V, C14 to UK receptacle AP9881
  • Surge suppressor: 1 x APC Performance SurgeArrest 8 outlets with Phone, Coax & Net 230V UK PF8VNT3-UK
  • Patch cable: Belkin High Performance Category 6 UTP Patch Cable 5 meters CNP6LS0aed5M
  • Operating system: Microsoft Windows Vista Ultimate 64-bit Edition OEM 66R-00838
  • Productivity suite: Microsoft Office 2007 79G-00007
  • Software firewall: Comodo Firewall Pro
  • Active antivirus / antispyware: ESET NOD32
  • Passive antispyware: SpywareBlaster
  • OS optimizer: TuneUp Utilities
  • Drive optimizer: PerfectDisk
  • Backup application: Acronis True Image Home
 
Spent much of yesterday working, and thus far this weekend, have been occupied with housekeeping and various technical and interface issues. Amongst these was the decision to switch to TradeNavigator for monitoring, though I may well keep NT/Mirrus for execution.

Even though Jack repeatedly advocated perceptual and experiential learning, and asserted that knowledge is not gained by reading, reading ANYTHING, I couldn't help plugging in a few searches to help fill the gaps in my understanding.

Amidst my search, I came across an enlightening post by BA_trader from '04:

...I think a better way of saying "recognizing whats possible" is
saying that Jack facilitates learning. He "reads" a person and
then presents material that will mostly likely lead to the person
making a step in gaining knowledge or an aha in their own mind.

So he is making you learn. TEACHing is yesterday's newspaper.
lol

Again - it's a cellular automata kind of idea... knowledge of
something is a continuum -- a closed system as he said. He
looks at you and says "what place are you in" and he looks
at "what is next door" in the continuum -- and he give you a
little shove. When you "get there" yourself it really sinks in
deep... you get knowledge that can lead to wisdom. Not facts...

Perhaps recording 'the process of skill acquisition' was intended as part of a formal accelerated teaching aid.

Aside from the copious translation and invention on my part, I feel that my lack of a systematic, methodical and analytical approach impeded the process significantly. It also seems that with the introduction of the YM, I reverted to the familiar and obstructive data-logging autopilot, rather than utilizing the YM for it's sole intended purpose, to act as an advance warning system at appropriate times.
 
Intermediate (repost)

Level 2 traverse trading continues as Beginner trading becomes a trader’s history. Intermediate trading contrasts with beginner trading in that “anticipation” becomes part of the inference of the trader’s perception. Because I could not get across what boot camp is in the first four weeks of the month of boot camp, I missed to opportunity to comment to recruits on how the drilling interaction relates to the Present and how “anticipation” works in the mind.

Here you see the four columns of Volume are duplicated and applied to YM as well as ES. Similarly, the three columns of Price are duplicated for and applied for YM price. These 14 columns are all interrelated and the frequency of MADA is such that for the first time a lot of “mental carryover” begins to occur. Usually I can get at this sooner but the boot camp didn’t pan out in terms of work and working frequency. If anyone does this level of logging, they will see what I mean and log notes and AHA’s on the backs of prior pages in the 4 daily log pages. This is where “you know that you know” really hits hard and makes it possible to be both relaxed and highly focused on carving turns. Most of the “premature” and “lagging” habits get automatic and personal attention by this time. As a note, in PA trading, by the time this much experience has been put in, bad habits get exacerbated instead. The “you pick your own exits” is the easiest quotable simple symptom.

The focus of two merged YM and ES markets where one is less differentiated (30 vs 500) allows a “natural” differentiation to begin in the mind. You shall begin to see the “equivalence” of exit followed by entry in the opposite direction.

Posting and interaction follow the same many parts of the day. Again an improvement in reversals is occurring and it is recognizable that there “never was any rush” in doing a reversal. In this log we pass over the “knee” of the learning surve and the added capability in annotating and logging and critical thinking is very notable. Everything is a “breeze and SOP; there are never, any more any surprises in making money and there is a strong recognition of how the market migrate and never jump around. A partnership that is recognizable has been formed.
More...
 
Quote from jack hershey:

Spikes

In intermediate we have YM telegraphing to the ES and the ends of bars that are extending the range or trand or traverse are important.

The end of the bar, where it is in annotating and where it is in the movement of a profit segment, is a TELL from the market to you for your data cluster and on to the A D and A of MADA.

Efficiency is the topic.

As a bar ends (or, latter in skills, in intrabar occurance occurs) it may reach its maximum volatility and the related volume is ending a surge on PRV, then you are haviing a first chance. In trading there are first and second chances given you. In between these you need to bear down as see that the first chance came and went. The first chance is over and you are anticipating the second chance coming up.

Presently, in boot camp both chances are just simply missed. effective means trading confirmed traverses after the end of a given traverse.

The first chance ends as price retreats two or more tics into the close of the bar.

The par of the bar from the end back to the close is the "spike" or lightening rod type apprearance of the end of the bar.

By recognizing the price movement into the end and back a tic, you look at the dynamic of the volume and see that volume confirms that the price is going to receed further.

Lets call the above "awakening to spikes".

You have awakened and now we turn to making money (batting).

We step back and reason critically to understand that SCT uses sequences and we talk in scientific terms about price and volume.

A bar is advancing the trend of the level under view. Relative increases in volume are used to advance price momentarily. This brief volume surge coming and going is volume accelerating then decelerating. Later, we see it all quite nicely in four concurrent other places. For now, we use the "awakening" narrative going forward in time and step back the "before" the spike began and use our senses to get the whole sequence down from pre spike to spike.

Two pre spike things: steady volume transition (dom or non dom), then a brief volume surge begining near the end of the bar (we now have YM, then ES doing this in stereo, as well).

The surge beginning takes us to the end of the price extension, we hit T when the volume surge extinguishes and the volume goes into an underdamped state to return to the pre existing volume transition of dom or non dom.

This was the (first chance.) The second chance is the C to O of the bars and the following extreme value of the second bar. After that it is an IBGS.

In this case on 17NOV08 we have a point 1 of a short traverse at the spike..
More...

My understanding of the purpose of this post (and the associated play-by-play commentary) is manifold: to enliven my mind to the fact that a tape is simply a traverse in miniature, ending on the climactic volume surge that would be called Peak Volume on a traverse level; to heighten my awareness of intrabar occurences on the bars that occur after sequence completion and signal change; and recognition of two distinct and specific windows of opportunity, which will gain much more relevance as tape-level trading usurps the current incarnation. Personal attention to 'lagging' habits.

This connects with Spyder's admonitions to fully master Monitoring before progressing, as it both underpins and enables everything else. Certainty that the sequence has ended (and a faster one is not concurrently underway), enables unmitigated attention to be placed on the bar/s that will change the right side of the market - first on the YM and then the ES - and enables recognition of the first and second chances for timely action.
 
Quote from Neoxx:

... Jack repeatedly advocated perceptual and experiential learning, and asserted that knowledge is not gained by reading, reading ANYTHING...
More...
I have been harboring a belief that quite possibly the only way to learn the methodology is by doing the drills (learning to monitor). This belief of mine has been growing stronger and stronger after I was able to achieve some notable progress following the regimen of unbiased annotation practice.

Since we are dealing primarily with visual recognition of patterns of price and volume, and there's more than enough evidence that the right hemisphere is tasked with with this particular process - it only makes sense to approach the learning with this orientation. Pattern recognition takes place outside of conscious awareness, therefore it is a pattern recognition process, not a reasoning process. A kind of pre-verbal understanding that yields insight may explain the repeated references to the "'know that you know'" state of mind.

The pattern recognition process is neither inductive nor deductive, nor is it rule based. If one is lost in unfamiliar territory and then all of the sudden arrives at destination, it is only due to pattern recognition ability of the right hemisphere. The dominant (left) side of the brain then says "Aha!" as if it saw the answer provided by the right hemisphere for the first time. Which seems to be the sequence for insight generation, where incubation takes place outside of conscious (in our case the right side of the brain).

Jack's references to neuroplasticity may be the missing link that allows one consciously regulate the unconscious process of pattern recognition.

Whether one choses to log or not to log, the primary subject of our attention is the chart - and it seems that the only way to develop the ability to "know that you know" is to keep reviewing charts.
 
Thanks for the insightful comments, Romanus.

To expand, I think we're dealing with a dynamic kind of pattern recognition, seeing things unfold, which is why Jack stresses the importance of real-time monitoring and references the three operators (spatial, movement and shape).

He also mentions seeing and hearing the market's TELLS, and describes four adjuncts which facilitate this (largely unconscious) process: price annotations, volume annotations, the platform and the log.

So in effect, while the absence of a log or the lack of comprehensive annotation may not seem harmful, by dramatically reducing the unconscious uptake of information, they may retard the entire process.
 
Quote from Neoxx:

Thanks for the insightful comments, Romanus.

To expand, I think we're dealing with a dynamic kind of pattern recognition, seeing things unfold, which is why Jack stresses the importance of real-time monitoring and references the three operators (spatial, movement and shape).

He also mentions seeing and hearing the market's TELLS, and describes four adjuncts which facilitate this (largely unconscious) process: price annotations, volume annotations, the platform and the log.

So in effect, while the absence of a log or the lack of comprehensive annotation may not seem harmful, by dramatically reducing the unconscious uptake of information, they may retard the entire process.
More...
For a beginner, who makes decisions at the end of bar, IMO it makes no difference whether a static or dynamic chart is practiced on. But a real time monitoring is obviously a must for next step. So, since people often do things without knowing it - people are actually know much more then they think they do. The sequences, which develops inside 5 min bar certainly register in the unconscious even if not noticed consciously.

As far as the annotations are concerned (including the bar coloring) - I believe them to be an integral part of patterns which brain has to be trained to recognize.
 
Quote from romanus & neoxx:

...
More...
... I guess what you two are saying leads to the conclusion that too much annotating automation might be counterproductive, as it short circuits the pattern recognition brain training ... automation inherently filters out price and volume nuances ... anyway, there is an analysis part of this method that's more than just pattern recognition, and that can't be successfully done without the good understanding of the PV principle ... :)
 
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