Thankyou for your response. My main question would be is that I have found that there are not enough high quality stocks that break out for 10% moves while the general market is in an intermediate term downtrend. If I had a high quality stock breaking out of DU, I would take it. But, with the current market, I have not had a trade in a couple of weeks. Should PVT only be used when the general market conditions are favorable or are you taking other trades...specifically trades not out of DU when the general market is in a down IT trend. Important question, Does PVT really nail it 2/3s of the trading weeks per year and the other weeks lay dormant? You mentioned something about loosening the requirements to 75 for rs and eps. You also mentioned maybe elongating the universe by using daily graphs along with stocktables. I am just thinking of ways to enlarge my universe to take trades that take advantage of the compound interest formula. Doesnt bunching occur for short term BOs. I noticed IT BO trades often bunch together.
Some questions: 1. How do you make the A/D scoring asymmetric? 2. I see a function called "Accumulation Distribution". Do I have to use that one and then do a calculation like: IF today's AD value > yesterdays AD value THEN AD = 1 ELSE AD = 0 3. What are "money making velocities"? 4. How do you make A briefer and D wider? 5. What do you mean by "But there is not a three part system where there is space". I think you are referring to the trading cycle. Now that you mention it... How can there during 2 and 6 NEITHER be accumulation nor distribution. My calculation in above question 2 will always return either 1(=Accumulation) or 0(=Distribution)
Some more questions: 1. What are the tomato plants? 2. What are the three spaces? 3. "D to A begins, then a little A to D, then the last D to A". Are you saying this happens from 7 to 6 to 5 to 4? Or from 0->7->6->5->4->3->2->1-0-> and then another 7->6->5->4? 4. Which values to you recommend for DMI+ and which for DMI-?
PVT works all of the time. In trading, you edesign an algorithm and then you apply the algorithm to markets. PVT is the stock application and you make a fixed number of elements Universe first. I have about 100 stocks in the Universe and on Sundays a weekly batting order is set up. about 14 stocks are batting including two pinch hitters. The EPS and RS are percentile oriented and you adjust them to have the list 100 elements give or take. We are in a Depression that began in 2006 and will continue for 12 years until 2018, mimimum. This is cast in concrete. Use "Putting the pieces Together" to do the Sunday work and have the batting order set up. these two system elements prepare you for the events of making a high money velocity where the system is a 60 plus Sharpe Ratio atmosphere in a Depression. At some point SSR must be used for IT trading using a weekly chart orientation that parallels the PVT. Here the fractal is 4 1/2 weeks long for the long half cycle. Quality stocks are used. In this you tuyrn to the 197 sectors stocks are found in. Rsing sectors replace falling sectors. Quality stocks are found in the sectors. as you see by the sectors popular in the Universe. You watch leaders and trader laggers. All of this for a working person is 15 to 20 minutes a night after the sunday effort. The concept of not having losing trades comes from quality and the X over of money velosity as shown by the Rank value units (%/ day in profits) SCT always works in all markets and here you trasde both long and short. You sweep the excess profits above market capacity on Fridays. First you fill up to 12 streams in PVT. Then, you use all reaining swept capital in SSR. There is no upper limit on shares in SSR. For trading, we do not use market trends in our work. You can watch these to have a context for the mistaken views of the promulgators in the meadia that follows the CW of the financial industries.
Tomato plants are locus's in an example. the plant are n+1 in number compared to their separations n. Plants begin and end a row (trend). the three spaces are the three moves of a trend: move 1, move 2, and move 3. 3. the first list. 4. DMI + has a formula. It gives you the value you see plotted on the chart. When you add the pane that contians DMI+ and DMI- then you see the blue and the red line (defaults ,respectively). At some point you will become inclined to begin to get set up to trade stocks. Every week after Friday, set up a universe. Then set up a batting order of HOT stocks. Post it early on the weekend so I can fix your work to be able to use it during the week. Do you have a copy of "Putting the Pieces Together"? if so post it so others have it.
Nice try to place a subliminal invitation for action It is not that I don't want to "become inclined to get set up to trade" but there is also another inclination which asks me: First understand what you are doing and why before you even think about a trade using PVT. Found it: http://www.elitetrader.com/vb/showthread.php?s=&postid=3641022#post3641022 If there are "others", then I would love to hear from them and see them post as well.
After doing some debriefing on this statement, I was hoping you might elaborate on this particular sentence. "To decide to make money on a ST basis. you work inside the IT and LT. By picking stocks that have flat durations from point 2 to point 3 of IT channels, that specific time periiod has to be considered and evaluated. From this comes a strategy." Are you specifically trading within the flat durations from point 2 to point 3 and trading within that lateral period OR are you saying this particular lateral IT sets you up for a take off. Meaning, picking creme de la creme of the possible IT stocks about to take off to the long side. I have noticed that lateral short ITs often precede above average long ITs or are usually early bases in terms of the life of a LT up trend. I might be totally off with my thinking but wanted to ask anyway. Thanks.