The Stochastic Indicator

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Quote from trendy:

Yep, exactly what I thought.
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Aww, come on Trendy, if this stuff were so bad, why are you still hanging out here six months later?

Jack has AGAIN mentioned the lack of volume today.

Being contentious about the issue will not make the volume pick up. We are going nowhere fast again today.

The losses we are taking now are no remote comparison to the gains we made just a few days ago.

Are you keeping you stop log BTW? No entries in quite awhile.
 
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Quote from bubba7

"If you were following the market on Wednesday, though, you would be looking at Thursday Am the same way. This would immediately put you on the 30 min."

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Thanx for the reply. Knowing a set of rules or guidelines is my first step. Forgeting to, reminding myself and integrating them into a daily habit is my second step.

I've noticed how when you do your preflight check list you always review in such a manner as to include the last four trading days. It seems that was has just transpired is just as important as what may follow.


thanx again for the reply
 
The journal post entitled Version I July, Part 16 is a good one on acouple of topics: Point 3 and stop logs and flaws.

I am down to 66 pages to do in Version I.

I will try to get version II done this weekend, health permitting.

There are several threads here running about how hard it is to make any money.

The edge stuff seems to be a real killer limiting mentality. I did not recognoize how trapped most people are.

Read some of these and see if you can get a perspective on how different SCT type thinking really is.

There's a lot of fear out there it looks like.
 
I will now do version II which is Version I with evertything killed except what I contributued and with all key words in bold

Version I was done to get the crap and redundancies out. It is a chronological file that has the learning from beginner to SCT expert in it. You can go there and see trades and learning the way it happened. It allows you to experience the process. There is no other way to get rich making money than to learn as a normal person does over 6months that it took us.

Version II is an articulation of how I go to beginners and bring them to expert. Just my steps as I continue to go to the place a person is in the process. The bold stuff is there to key you to the terms and definitions. All bold stuff is in monthly lists that cross reference. the bold presentation in the juornal gets you back by reference to the part of the process where it appears. There in that place you see it's context as part of learning.

Below is a follow on for you. What is next so to speak. It is a brief statement that gets the whole trading thing bounded all the way to the better levels of riskand money management.

Over 6 months I have introduced some newstuff to ET folk. It is in bold. Most poeple have blown me off so far. 4 out of 5 do usually. The latest poll fails to show this primarily because of its bias. it is biased to my favor sort of.

Read what is below. Only one person here has been there before it looks like so far. Experts use SCT. They are rich and have to use money making strategies not posted here.

The view ahead:

Preface on 09AUG03--SCT Trading.

The purpose of expert trading in futures indexes markets is to trade at the potential the market offers. When a market is seen as a dynamic model where money is transferred during change, then it is possible to design a method to continually extract capital from the poll that exists. Others supply capital into the pool.

The term we use here for this is SCT standing for seamless continuous trading. This is an expert level of trading reached by going through,successfully, several major levels (and minor levels within the major ones) where more and more of the market's operating points may be utuilized for making money. With SCT almost all of the market's operating points are utilized.

The process is actually segmented in several ways and on several levels. None of this is done in a macro analysis context. Only micro analysis may be used. The PT has surfaced in ET and so it's implications can be addressed as an annecdotal provision. PT determined that people in trading situations make judgements that can lead to decisions and behavioral action. They do this differently for case A and for case B that PT examined. The SCT is designed to utilize a combination of case A and case B. A synergistic effect results that exceeds the performance of the two independent cases under several hypotheses A+B= several times the sum. C,D ,E, F....etc result.

As a practical application

Taking segments of money out of the market occur depending upon the strategic modus in effect (either continuation or change). In practical terms, money is taken out at the end of each opportunity. Since the continuation trends usually migrate to the change modus which is a reversal strategy, more capital is extracted during the change modus.

People going through the levels of performance go through about 8 doublings of money velocity. The continuation strategy gets people through most of the lower levels of doubling. the combination strategy og continuation and change leads to other doublings. Finally experts accumulate enough capital to primarily deal with risk and money management as their primary strategic occupation as they trade under a mechanistic (totally software operated) regime. The principle construct for doing this is zone trading with multiple contract entities treated as independent segments of capital that are traded in the same market which is zoned. SCT precludes "edge" bullshit. As time passes and market operating points come and go. Segments of capital application begin in differing segments of time for market operating points (zones). As independent elements of capital, their individual risk is assessed and the respective sizing is determined. The effect of this is a "portfolio" of circumstances of application of capital. Think of it as a portfolio of stocks selected by FA and whose hold is determined by TA. In the case of a commodities futures index, there is one market and one entity. not like a stock exchange where one market trades many entities called stocks. In an index exchange there are entities as well. They are defined in FA terms as well. Each index market operating point has an a cell in which it resides and it is adjacent to other cells. This matrix map is exactly like a stock exchange where stocks of every FA description many be grouped. The FA analysis of stocks at any time in space yields a comprehensive assessment.

For the cells of the index market's operating points, there is an analogous FA description. This is where I collected the places for beginners, intermediates and experts to trade and moreso, not to trade. By defining the operating points of the market in a multidimensional matrix, you simultaneously create a risk matrix and a money management matrix.

FA descriptions of entities are what comprise portfolios. Risk manangement is conducted on protfolios for one purpose: to distribute risk.

ET'ers deal with non-portfolio risk in singular markets where they fart around with edges for this, that and the other and have only one application of capital at any given time because their edge is the only application they constain themselves too.

Zones have variable risk through out their run as they overlap each other. I only know one person here now who plays zones (16 applications max at any time) and he scales in and out of each application independantly. He feels it gets a little tricky when some of the zones are long and some are short at the same time. All of these considerations stem from one condition and consideration. The size of personal capital relative to the size of the capital any market zone is handling at any particular time.

This is inserted here today to set you up to consider the very important sequence of posts that follow. the posters are now on the expert plateau where SCT takes place.
 
Quote from bubba7:

cme-es03u-06ayg03 5 minute.jpg
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I have a few questions.

I need to spin out of Stochastics thread all the charts for six months so they can be printed as a simple reference book of charts.

I plan on adding a new set of charts as well the illustrate all the variations on the theme.

Above you see a chart I copied from an attachment and put in the text part of a message. It lost it's redness and it's clickability to bring up a chart.

I wanted to do a multi column posting of a chart book table of contents that acheived several things: listed chart in chronilogical order; specified the trader's level of trading;classified the chart as to type of trading; ranked the H/L according to a YDT rank from smallest to largest range; and other stuff.

How do I make the chart reference one that a person could click and print? Can I put it in a column?

When I edit all the attachments just disappear. I want to get them back as a bunch.

I did the version II edit for Version I over the weekend. It is 187 pages in 12 point at this time. I printed it 2 pages up, folded each pair of pages and stapled it as a 8 1/2 by 51/2 inch using under 100 pieces of paper. It is about an inch thick in black and white.

I am rewriting the 187 pages and doing the bold spin out.


To be helpful, could someone post the daily rankings of the ES mini H/L YDT. I will then design a classification and yield system for various ranges of H/L. there was a thread on this a while back. I would like the thread name and the name of the originator. I want to grab some of the more intellignet posts in the thread to become a forward to the Phase II Part E Chart Book.

I want to knock out the chart book ASAPso I can reference to it in the Version II re-edit I have under way. I am putting a short prologue into the version II so people can use the same chart set up the group is using and also know the primary set of trading signals right fron the onset of version II.

Thanks in advance.
 
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