Quote from Wide Tailz:
Offer of the market = daily range (difference between the minimum bid and maxumum offer for the day).
this is commonly called the crayola test. Draw the zigzags and use a string to add the vertical lengths together. Then take you value (H-L) and snip the string into lengths equal to the H-L. You will easily see you have a multiple of the H-L.
Binary vector = either up or down, depending on event based signal
this is the most common error of the CW of the financial industry. Trend monitoring and analysis is done using dominant and non dominant profit segments. The container, amazingly enough is the parallelogram which gives you the dominant slope and the non dominant slope. This is where the color coding of platforms may come from. When the market is moving from right to left it is a dominant move. Movement from left to right is non-dominant.
A binary is a cool non probabilistic zero risk no money management required context for making money. Long or short are common sentiment terms which introduce the vector nature. The magnitude of the vector is a velocity measure as you would expect. To determine your performance you compare your trading money velocity against the limiting case the market's money velocity.
Capturing offer of market via binary vector = event based trend following strategy on minute bars, encompassing daily price range.............
The container of the trend contains a series of events. Three moves always occur in a trend. To trade as an expert you carve the extremes of each of the moves of a trend. The nice beginner trends are somewhat unusual. (Google rockets.)
As a person goes from least skilled to most skilled he takes advantage of the interlocking nature of the fractals ORDER of events. When extracting 3 to 6 times the daily range, a person has moved to the faster of the observable trend segments. In ES this is 20 to 40 trades a day. It is common for an expert to make 80 points a day percontract and trade arond 250 contracts with little or no slippage and no losses. No stops, mo money management and no risk.
