Quote from Paddler:
Thanks for the detailed reply.
But I still wonder how your definition helps a trader to monitor the sentiment of the stock symbols in a quotesheet.
Don't we set the color of stock symbols to be determined by the comparison of current price and open price during RTH?
Trading stocks has the parts I mentioned.
as you ease into putting your capital in the market, you wind up with owned stocks and a "Hot List" from the Unverse selected by a filter composed of seven criteria.
If you have to go to work, you analyze each evening after RTH. In a few years, you do not need to work no matter how small you start.
Then you trade three ways using one algoirthm.
For position trading stocks, you put up panes fro each stock and arrange the panes so you can make as much money as possible. I use 30 minute charts and when I am going to take D and A of MADA, I go to 15 minute charts. All charts are colored black for owned stocks. All charts are colored red for Hot List stocks.
I am watching for the charts to change color. But to max the profits, I have to know BEFORE the color change to get the last drop out of the orange and at the same time not be faked out.
So I did the prep to get the color defined exquisitely.
I do not use open price for more than a second. I use a RDBMS which involves comparisons of adjacent bars: the forming bar and its prior measurable bar.
We are talking about how most traders fail by getting fooled. Randomness is not what fools traders. Randomness is a myth of CW and OODA betting systems. OODA is a bad idea and the CW wisdom is filled with myths and the record on trader performance is the result.
By taking 7,000 stocks down to 100 to 125, a person filters out all the myths by using the Scientific Method. This list of high Beta stocks cycles with supreme regularity. The IAS is automated so you can choose subsets of stocks for days and they are ranked for that day. THe picking of stocks is, again, exquisite.
You earned the right to trade while holding a job. Then trading was less profitable by a small amount and your goal was to build a profit cash flow that was large. William J. O'Neil started with 500 bucks and quit in 27 months. He took the profits and build his empire as we all know. Darvas built his fortune and kept dancing in night clubs with his patrner. I buought personal freedom and made what I made to support my life style. I wrote books after I did cutting edge problem solving.
When you trade you monitor and analyze.
At events of possible change in the algorithm, the gane is to stear and focus to be bale to carve turns. We are way past the myths of money management and risk management.
The faster charts called timeframes, move the observable trading fractal to a different observable relationship with other fractals. Stearing means go to wear the action is anticipated. Focusing is zooming in to the forming of the sub and sus sub fractals of the tading fractal. You can observe the multi sentiments on each.
All trades are enties and exits in stocks whereby all the fractals are "converegent". The money making is in "slow motion" becasue you have so much mental prowess to carry out laps in the MADA.
But you have to build your mind to have this prowess. The first opportunity to practie this level of prwess comes in fifth grade level mental development.
The OP is asking about rules and the solution is the routine. MADA is the mental routine. You learn to learn. Then you learn to hold and rverse as a mentality. For stocks it remains an entry/ exit but it is exquisite as a process.
Trading a position is an 1 and 1/2 long window.
