Quote from roberk:
Good stuff!
Thanks.
Scientist is imparting to us a wholistic approach for DAX. I see he carries over a lot of stuff from his past posts for other markets.
Improving what he does really requires a focus on developing his personal efficiency for the range of market efficiencies to deliver profits. He discerns that the DAX yield is a little over twice the ES at this point in time and liquidity of markets.
I use a "yellow brick road" excel spread sheet for each market to check out the various fractal market and personal efficiencies.
The DAX shape of things for all of us it that scalping is almost ever present as an action on the carrier fractals that give DAX the more than twice the efficiency of the ES.
By trading the carrier as well as scalping there is an additional leverage available. Details of this are best seen on AMT's posts and scientist is not doing this as yet. I should use better instead of best. ET is not a best place.
Staying in (majority of contracts) the slower fractal trends that give the higher efficiency, then, as well, using fewer contracts to scalp on that carrier at high frequencies, compounds the extraction and simultaneously spreads risk. Each separate stream of capital application has it's own R/R characteristic.
I see that just two variables are needed on each carrier periodicity and that these pairs are not necessarily tightly linked. No nonsense regards this as bull$hit. To make my comment more reasonable for consideration, I will amplify it.
A theorist at Berkley, Alexander, deals in performance and the advantage of least connectedness as an advantage for success.
Scientist requested input, so this is mine.
I use pairs to minimally define. I will go through the fractals of DAX and define the pairs.
Pairs are elegantly limited to 4 combinations and permutations. they sequence in time it turns out. This is a profound element of making money.
I force you, sort of, to view what I say6 by my descriptions. It is important that you yield momentarily to this setting and environment. it is not going to trap you or disturb you any more than you want it to. I am not putting you at risk but I am attempting to open some views for you.
The slower fractals form plexiglass clear spheres outside of one another. You see clearly into the center where the scalping domain operates. By this and in this manner you have a province from outside to view scalping. There is, thus, and everpresent context. The context tempers the NOW. Scalping is asymptotic to NOW.
The pair for scalping is a price pair: cash and futures values. since change is the only way to make money. We look at their time based dynamic. All you do is look at the relative offset values and deterimine if their is a smaller difference (squeese) or a larger difference (stretch), all relative to the neutral value of the offset. This phenomena precedes the scalping opportunity. squeese is long and stretch is short.
The next sphere outward it the immediate trend pairing. Use the button plug in or the market depth. Bbid and Bask are the pair in the context of the portion of the depth presented to you. (only half of the story is on the screen). Size is the variable. The immediate trend is controlled by the least valued variable AND the filling in of values. You read it by watching the Bbid/Bask spread pair change. You always know what is next through the dynamic. The the pair changes leading to another adjacent pair. After the change is "sticks" or not. If not, the fillibration (you can laugh or smile) is between two pairs and they resonate in every changing periods of presence. You can see this immediate trend flowing along.
With just two levels of stuff, you have a context from the slower and a focus from the fast scalp center. I cheat a little. I use a leading pair of cash and futures values for my first pair. Example: INDU and YM04H as a pair lead the ESo4H scalp. Scientist covered the leading stuff of DAX for you already and other corroborated his view.
To further strengthen these two concentric plexiglass spheres, we add another which is asymmetric instead of uniform as are the first two. This larger sphere is the bane of most. And they also are not conscious of it's import and why it works against them pervasively.
The market flows with a propensity. But that also means, clearly, then that opposites do not apply. You must, for the moment, regard what I say to you. Flush it down the toilet, later, if you must. The most important fractal comes up here. It, of course, is the carrier of the two above periodicities. What makes it so important is that it is asymmetric reasoning wise. The two variables yield combinations and permutaions that are not opposites. Further, these two variables are the driving forces of any market. Price and volume.
For this set of combinations and permutations, I need to really plunge you into a thinking effort that is rock solid and unswerving in its logic. I will post it ASAP just to be able to separate it from the above temporarily. Later, I will try to amplify on scientist's posts here to give something specific to him to consider.