In gamma testing today we found that Dr. Mudgins' client was both fatigued and confused by attempting to use the studies Fatigue and Confusion in combination (the dimwit!). So I combined the two into a single study I call Fatigusion. (I could equally as well have called it Confugue, the marketing department will have to decide.) Snippet from NQ today attached. Top pane is Fatigue. Middle pane is Confusion. Bottom pane is Fatigusion. The lesson, I think, is that if you expect to trade at all you had best avoid fatigue and confusion.
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Trading Without SCT
- Thread starter Joe Doaks
- Start date
We have overnight made numbrous unprovements to the Undicator formerly known as Fatigusion (fatigue AND confusion). Marketing preferred to brand it as Confugue. Partly because it suggests the psychological condition of fugue. And partly because our French evaluator appreciated the prefix "con".
Unprovements included randomly tweaking the three constants used, and converting to a stoplight-like format. Orange indicates "stand aside". Blue denotes "trade if you dare". An astonishingly good example (not likely to be repeated) is shown in the attachment of the period of the FOMC announcment today. You can clearly see a tradeable runup, a period where the manual trader should stand aside, and the resumption of manually tradeable behavior.
As a reminder, fatigue arises from looking for a trade that isn't there. Confusion arises from rapid fluctuation in the potential trade direction. Times Pacific.
Unprovements included randomly tweaking the three constants used, and converting to a stoplight-like format. Orange indicates "stand aside". Blue denotes "trade if you dare". An astonishingly good example (not likely to be repeated) is shown in the attachment of the period of the FOMC announcment today. You can clearly see a tradeable runup, a period where the manual trader should stand aside, and the resumption of manually tradeable behavior.
As a reminder, fatigue arises from looking for a trade that isn't there. Confusion arises from rapid fluctuation in the potential trade direction. Times Pacific.
Attachments
Quote from Joe Doaks:
Doug, I am confused about your time stamp. I thought you were in Headsville TX (better known as Austin). I'll heap fulsome praise after I look at the chart. Thanks. Mike.
Joe/Mike,
those stamps are from IB and are I believe GMT. The first trade shown as 14:12:54 is actually 9:12:54 TT.
And, I don't live in Austin; I'm in a little town about 90 miles west of there.
The stamps are sometimes in local time.
Don't ask why as I don't know and IB has not answered either.
No trading for me today as it is Fed Day.
DS
Thanks for the compliment. I tend to trade from around 850am - 10:30am and then from around 1:00PM til the close. Times are Texas Time. I find the mid day volume is too low for my skill level.Quote from steve46:
Hey Doug
That a nice record your are compiling. Good job
I'd like to ask how you feel about your experience using this method....I tried it for a while and it worked pretty well. I noticed that the main benefit for me was that it taught me how to quickly orient myself to the open (using the "tape").
What I also found was that I made my money earlier in the session.
So I am interested to hear what your experience has been like
I don't want to give the wrong impression. I don't use it to trade now. I found other tools that I like better and that fit my termperment. But I think I benefitted greatly from the lessons learned while investigating it.
Steve
These methods have greatly improved my trading but I had a hard time adapting as I spent 10 years trading based on indicators.
Now I can quickly scan a chart, look for the channel, check the volume gaussians and decide on a trade. I do not yet subscribe to the continuation/change ideal but am getting there.
Most of my JH trading to date has been in stocks, as the formations generally are much slower to form.
The past couple of months I've been moving to futures, but am easing my way in as the pace is quicker and the losses can quickly mount if you pull away from the monitor or are distracted.
Good trading,
DS
Also, Doug, are you at liberty to say if you have ever met Jack in person? I am curious to know to what extent the persona he projects on ET represents his physical reality. I ask because I'LL never get to meet him, and I can't believe that he could really be like that in person, haha!
Quote from Joe Doaks:
Thanks, Doug. I want to study those trades as examples of real SCT-based trades. FWIW, my IB always matches the time on my computer. Best regards, Mike.
THey are NOT SCT trades, just me picking spots during the day using JH's ideas.
I've not met him nor Spyder nor anyone else involved in Spyder's threads.
I don't understande the IB reports as today it matched my computers time. I don't pay much attention to the times when I use these reports. NOw you got me wondering what is going on and I started a ticket with IB because of your damn question.
BTW. are you a Longhorn or Aggie fan? I'm for the Longhorns.
DS
Hi, Doug. I am not a Texan, I just live here, so no love for any Texas teams. Thanks for the clarifications on your trading style. And very nice trades, thanks for sharing. A couple of questions, if you don't mind. It appears that you have a fairly loose stop relative to my use of 3 NQ ticks, or $15, in the hope that on average I will get $20. Any comments on stop philosophy, realizing that pure SCT traders are so good they don't need stops? Also, are you deliberately trying to scalp rather than sweat out longer holds? Neither of these is a criticism, would just like to understand. The reason I ask the latter question is that I scalp because I am not very good at identifying the shape of the day. Best regards, Mike.
Quote from Joe Doaks:
Hi, Doug. I am not a Texan, I just live here, so no love for any Texas teams. Thanks for the clarifications on your trading style. And very nice trades, thanks for sharing. A couple of questions, if you don't mind. It appears that you have a fairly loose stop relative to my use of 3 NQ ticks, or $15, in the hope that on average I will get $20. Any comments on stop philosophy, realizing that pure SCT traders are so good they don't need stops? Also, are you deliberately trying to scalp rather than sweat out longer holds? Neither of these is a criticism, would just like to understand. The reason I ask the latter question is that I scalp because I am not very good at identifying the shape of the day. Best regards, Mike.
How are you able to live in Tx and not be a Texan????
I tend to use a trailing stop of about $50 per contract and usually exit before it activates based on PV. I am trying to get to the point where I use a very loose, emergency type stop (the kind to prevent a big loss in case your bladder screams EMERGENCY and you have no other option but to head to the head) and change position based on PV. I'm not there yet but am moving in that direction.
I need more testosterone before I venture into longer holds. I see the great potential. NOTE: I've done the longer holds in stocks with good success so I know the potential is there.
Good trading although not today for me as Vista did an automatic upgrade and Tradestation didn't like it. I will miss most of the AM action because of this; though I did make a couple stock trades.
DS
ps-as I was typing this, I took a short position in RRC at 63.53 and it is now at 62.97. So you can see, I trade JH/Spyder methods with confidence and with out looking. I did have a 1.00 trailing stop active just in case the bladder commanded action or I got too long winded replying.