As we all know, there's been a lot of controversy on ET and elsewhere about Jack Hershey's methods. I've tried to shed light on the debate by backtesting those parts of Jack's stuff that I felt were described clearly enough to test... mostly rockets and the 0 to 7 turn of the price, volume relationship as described in Jack's paper, Catch Up With Tomorrow's Prices Today.
With respect to this thread... I don't feel Jack is facilitating the backtesting of PVT. So I suggested that we first take on something of Jack's that's related but much simpler... the price, volume relationship that Jack described in his paper.
I've done backtests of buying the "0 to 7 turn" using Spydertrader's code for the scoring and concluded that it doesn't give an edge as is. Of course, Jack and his people have said my analysis is flawed so I thought it would be interesting to explore this in more detail quantitatively.
I'm prepared to lead by example and cover some simple truths about the price, volume relationship that I'd support with simple but comprehensive backtests and analysis that anyone can replicate. These truths are simple and test out favorably over multiple parameters on large numbers of stocks under all market conditions.
Quote from Trader666:
Vikana, could we establish some ground rules please?
Trading is a bit hectic today, so i'll spend time on this after the close.
Here are my thoughts: I'd like the initial focus to be clarification of all details in JH PVT system. Definition of all terms (in a mathematical sense), definition of all rules etc. Jack started addressing my questions so I think it would be reasonable to focus on that.
I have no issue with disagreement, but let's leave the past alone. I'd prefer that we simply focus our energies on constructively deciphering the concept and system. Since PVT apparently is fairly simple, it would seem as if everything can be captured over a few days.
With respect to this thread... I don't feel Jack is facilitating the backtesting of PVT. So I suggested that we first take on something of Jack's that's related but much simpler... the price, volume relationship that Jack described in his paper.
I've done backtests of buying the "0 to 7 turn" using Spydertrader's code for the scoring and concluded that it doesn't give an edge as is. Of course, Jack and his people have said my analysis is flawed so I thought it would be interesting to explore this in more detail quantitatively.
I'm prepared to lead by example and cover some simple truths about the price, volume relationship that I'd support with simple but comprehensive backtests and analysis that anyone can replicate. These truths are simple and test out favorably over multiple parameters on large numbers of stocks under all market conditions.
Is that too offtopic?
Trader666: I think that's also a very good idea. But let's not intermingle PVT and the "0 - 7 system". If you like, you can start another thread and posts your collective results in that. I'll try to moderate that one as well, or maybe my co-moderator can assist.
I would really prefer to simply document the details of PVT.
Vikana, could we establish some ground rules please? Thanks.
Here are the ground rules found in the OP.
Forum dedicated to analysis and testing of Jack's PVT System.
To avoid all the usual banter associated with JH threads, I've agreed to heavily moderate this thread. Only content related to PVT, testing of PVT or clarification of PVT details are allowed.
Temporarily, I am taking you off ignore.
there are two methods in science for checking out stuff.
One is called analysis and the other is called synthesis.
Here we are dealing with content, testing and clarification as these activities relate to PVT.
FYI, PVT is a system and, as such, it has a structure, a process going on within the structure, and the process produces results.
As a matter of fact (this means that something has happened and the happening is tangible), there are several ATS versions of PVT that are used on various exchanges around the globe.
What "there are several ATS versions of PVT that are used on various exchanges around the globe." means is that individuals and teams of individuals have used the precepts of PVT and converted them to programs in code and those coded programs are in use where the creators have chosen to make use of them. these people are not exclusively based in the US.
You may or may not be aware of what I have stated. My statement to you is one made for the third purpose of this thread, i. e., clarification of PVT. This is a direct communicatin to you about the status of PVT that came about as a consequence of analysis od PVT and testing of PVT that was done to produce various versions of ATS types of PVT expressions.
This thread is going to be about the analysis, testing and clarification of PVT.
The people mentioned above have made contributions to PVT by doing coding to produce programs of high utility for making money.
This avenue is open to anyone and all of these "anyones" who have done work on the PVT system have gotten results that are in correspondence to the work they did.
In you case, we have asked you for years to post your code of the work you have done so it can be repaired in some way to get it to perform as do the other versions of PVT that have been coded. You have failed to post the code you produced.
You have induced vikana to agree to code for your audience. He has begun to ask questions to "clarify" and I have responded to each of his questions.
I have deleted the rest of your post from consideration since I am not going to give it any consideration.
I do not expect you to change your ways and post the code you created. I do not expect you to come up with a description of your equity curve either. I don't expect you to qualify it as to its statisitical significance since that is not a possiblity.
This is going to be a serious scientifically oriented forum and I am going to put you back on ignore the next time you step out of line.
....what is required is a strict set of rules for automation.. this is not an unreasonable request or anything that needs to be censored
Your request for "a strict set of rules for automation" is avialble from any formal or informal programmer education resource.
People train formally and informally to acquire the skills for doing automation of systems or for just doing independent rules whch are known "script or "snippets". you will find an abundance of these at wealthlab as they relate to PVT.
Should you have been asking about rules for automating PVT, those have been provided and, as a consequence, several ATS versions of PVT have been created and are in use as successful ATS's.
either way your request and what you think is a requirement has been provided and what was provided has resulted in successful operating ATS's.
Here in this thead the dicussion is related to analysis, testing and clarification of PVT.
From this point on absolutely refrain from addressing me in any way that can be construed as anything but positive and thankful. Do not ever make any personal comments whatsoever regarding anyone contributing to this forum.
Jack, it's great that you're participating here but that doesn't give you license to rewrite the past so I need to set the record straight... some of my analysis has been with Spydertrader's code and I've pointed that out many, many times, including to you directly. I could go on but would prefer to look forward, not backward.
Quote from jack hershey:
In you case, we have asked you for years to post your code of the work you have done so it can be repaired in some way to get it to perform as do the other versions of PVT that have been coded. You have failed to post the code you produced.
