You emphasized a quality universe multiple times and It seems that this is the lynch pin of PVT consistency. I was wondering if you could go over the fundamental analysis of what constitutes a quality universe. Thanks.
OMG... I promised myself to now focus on SCT not PVT. Instead I find myself reading through "New Concepts in Technical Trading Systems." by Welles Wider. Background reading for IAS automation: http://www.elitetrader.com/vb/showthread.php?postid=3720450#post3720450
1. What is the purpose of having DMI+ and DMI- on the chart? 2. The default setting for both is 7. Is that the one that should be used? 3. I supposed it is not used to automatically rank the stocks. Looking at both I would say it is an additional criteria that can be used in order to decide if one should trade that stock or not. For example if the stock reached DU but DMI+ didn't cross DMI- then don't trade that stock, yet. Correct?
Begin to trade and keep a journal of your profits. What you are gong to do someday is just get weekly Universes (the Universe columns are done mathematically for you all automatically.) On sunday you get out a yellow pad and duplicate my hand writing on one sheet of paper. Now you have four streams of captital (25% of total capital each). each stream has batters. You make up the batting order and you have a couple of pinch hitters. This effort lasts 1/52 of a year. As time passes, you double your money during the years as follows: 1 on day one>>>>2x's>>>>>>4x's>>>>>>8x's>>>>>>16x's >>>>>>32x's>>>>>>>>64's. Now it is the 19th of December and you take time off until the second week of January. You have followed five rules as a weekly and daily routine using a platform that does all the filtering and list making for you. On a daily basis you look at you HOT list and your OWNED list. Your broker sends you statements, etc.... Here is what you will find out. 1. As you keep 4 streams running they get larger each turn over. 2. When you get to the 8x's doubling you notice it does not TAKE as long to double as it did before. You CAN SEE BY NOW there WILL BE MORE DOUBLINGS in a year because of a phenomena called COMPOUNDING which I did NOT tell you about. 3. At some point you fiure out that you are making money faster than you have a NEED or WANT to spend it. So you see you can TAKE out your original capital and ONLY TRADE ON PROFITS. This has a BIG mental effect: YOU CAN NEVER LOSE MONEY BY TRADING. If you are single, this concept is too difficult for regular pussy to understand. But if you do find a group that understand this, then you can enjoy the element of variety for the rest of your life. 4. At some point you discover you can train your broker to do the work for you. He will be incentivzed since he is going to coattail his other big fish. If he lies or embelishes, then the SEC fines his ass. 5. At some point you learn that you do not have to trade every day. Deep sea fishing takes a week at a time. The Daytona 500 hundred takes a week as does the indy 500. I like deep water racing: Bermuda, EDLU, America's Cup. I had a US 122 King's Cruiser for cruising (think NYYC cruise from City Island , NY to Bar Harbor, ME or all the way to Isle d'Or, NS. I also did gliding; a GROB109 is low six digits plus hanger and plus tows. Do you ski???? 12 days at Mt. Blanc is fun and relaxing or do Ste. Savior or MT Treblant (the Riley's owned it in my day) just off route 11 in Quebec. 6. You have to live somewhere. It will NOT be the same place year 'round. Market's use math. You need criteria, filters, formulae, rules and strategy. I did that for you. Read "Putting the Pieces Together" every day for a week. Turn the pages by using illustration titles and a wrist watch. When I need the time, Liz reads her Rolex.
While waiting for Pete to finally pick up his phone so that I can import the necessary library, here is the final Universe for March 3rd.