we are trying to get a series of 10 days rolling. Attached is what we have to work with so far. As you see we do not have the volume slower fractal annotated as yet. My posting anannotated chart is unimportant. People just copy it and read the results. Doing the drills is what makes trading a possibility. Slowly the mind is built from the bottom up. it is a foundation. Adding the building blocks is related to levels of skills. Just getting to a place where a person can do MADA and have enough time during that process is a goal. The attached shows a volume annotation where PACE of volume is sketched in as the carrier. Carrier means the alternative to anchoring volume bars to an arbitrary horizontal line. The last part of the chart emphasizes how when PACE is in the basement to predominant activity is the horizontal case called the lateral. I used paint to draw the lines so they are not too accurate. Most platforms have cloning or duplicating to make things accurate. The significant thing on these posts is how the trader knows that he knows on the level he is trading upon. Carry over provides the day to day continuity and degapping is part of handling the placement of the three containers. K200 is a great instrument as we all will find out. Maybe we will be able to synch this market with the US market soon to get a full day of trading rolling for west coast folks.
While I head to the office here is how the rest of the day unfolded(still need to add the gaussians and the rest of the day)... Jack, thanks so far.
Hi Jack, please feel free to go as far and fast as you want. Please continue what you started in your first three/four posts of this thread and let the rubber burn. Acceleration, expansion, fanning, K200? I'm looking forward to it. In the meantime maybe somebody else can tell me something about M(ove)1 and M(ove)2? What are they? How are they different from any of the other moves? I had a closer look at Jack's "price containers" and the gaussians and especially at the gaussians there are two or three areas which are not really clear to me. I zoomed into that area and drew Jack's gaussians dashed and what I would have drawn solid. To focus only on that I didn't add the other higher level gaussians. Somebody has an idea why Jack would have drawn it that way and where you think my gaussians could be wrong? Thanks.
Here is a reference on k200 where redduke has put forth a lot of the information on the instrument. http://www.elitetrader.com/vb/showt...=155188&perpage=6&highlight=k200&pagenumber=1 This instrument is traded from 8pm to 2am NY time. In Tucson, this is 6:30am to 1:20pm and then 5pm to 11pm. By posting 10 trading days a trader can get oriented to the instrument. An effective way to acquire experience that is very purposeful would be to begin to learn commodities (after becoming gronded in stocks) with both the ES and the k200 since they do not overlap with respect to RTH's. To further compress getting to the knee of the competence curve. Starting by going through the past 10 days on both would afford the potential trader a CONTEXT for going forward. The topics for learning come under: I Markets, II Traders, III Daily Prep, and IV Making Money. The common elements for the four are drills, inference, differentiation, and rules. Drills are how experience is used. The mind is where the inderence, differenctailtion reside. Rules are used to dictate and define the practices of the trader. ATS's are built using the coding of logic from parts I and IV. If possible, I will try to convey the what, when, why, where, and how of the four parts so that they are understood. First, I would like to deal with the pattern for a moment. I have not been able to convey how to construct the pattern on each fractal in real time. Adjacent bars are used to construct on the fastest obeservable fractal. This means the ends of bars are important for geometrical reasons. We use parallelograms constructed from extreme points on bars. The parallelogram is extended into the future. If two bars do not work, then a third bar is added and used. Lets say a person learns to construct parallelograms and he understands the 9 cases and how they affect parallelogram construction. By this time he can recognize finite math is involved through a deductive process of critical thinking. Drills can be used to get the above in a person's mind. So I need the last 10 days posted by a couple of people who have different platforms. Lets post one day of a clean unmarked chart for just the RTH's of K200. then I will goose the situation to get the display to meet a minumum standard by adding the W, W, W, W and H.
I particularly like this attachment. It was posted after I posted an anwser sheet. My critique is that you have negelcted to include the trading fractal level on the short trading fractal pattern that began the day. You also left off the slower fractal that bounds the trading fractal. I am pointing out that with the last 10 days annotated that you have many fractals all nested as a consequnce of being able to see the nesting from the fastest observable to the very very slowest outer sheel of many nested fractals. ALL ON THE FIVE MINUTE CHART with interday degapping. Here is a concept. For the learning trader, questions can come up. They arrive from the mind when the mind needs something it does not have. The answer to all of the mind's questions is doing drills. When I do the W. W, W, W, and H, I put in your mind the answer to questions BUT the answer is not usable. Since you are just reading it and moving on. the reason you have the questions is because price is annotated differently than how the pattern is used to annotate. I annotated a chart, then you annotated it differently. If you do that, then you get to wait to learn what has been covered until it is covered again like I am doing now. the trading fractal is in the middle of the three fractals. It is constructed from the fast fractal and contained in the slower fractal. Where your question is, is located where the trading fractal is annotaed differently than I annotated the trading fractal. Outside the trading fractal you still have to put in the lines to designate the slower fractal. these are positive statements so that you mind processes them. If I tell you you didn't_____________, then you do see the positive of the negative statement. You have a lot of drills that you have not done. You are substituting what you want to do for the doing of drills. Your task is to use the platform which produces lines by cloning or duplicating to put in the first short trading pattern on the chart. To do this erase or delete the read line at the top representing the RTL and then erase the red line representing the LTL. After that find the ftt of the long fast fractal that follows the short fast fractal. Label each fast fractal ftt. These two containers and their ftt's define the points of the short trading fractal. Label the points as 1, 2, and 3. When the short trading fractal is there, you will see the initial FTT of the first short trading fractal of the day. When you see this FTT label it. This post is just words. It is not a drill. as you do the 10 sheets to draw the pattern, you will see that you have to lay aside a sheet or two, unfinished, because you did something different than on the original you are sensing. What is happening when you do things differently is that your mind's operators for spatial, movement and formations (or shapes) is not functio9ning as yet for doing things related to trading or drawing. Take any line drawing you see in an art picture book and turn it upside down and draw the upside down line drawn picture. Whne you have completed it turn iboth right side up and find that you have done a better job than you could by drawing it right side up. Why? the reason is that when you look at the right side up picture, YOU ADD TO THE PICURE THE INFERENCE OF YOUR MIND and you cannot copy as well as you can copy an upsidedown picture. You cannot duplicate the first short trading fracxtal pattern because you are looking at completed extreme points and letting your historically established inference interfer with drawing the pattern according to the pattern actual real and prescribed by annotaing rules. you take liberties with the rules anbd so far you cannot copyan answer givine to you before you did what you did. Mostly everyone else in this thread observing it is chicken to make the effort to mess up annotating and posting it. You and SKO get the rewards of my critique because it directly addresses where you are and the progress both of you are making. fat fractals create ftt's; that is their prsent purpose. these ftt's are the points of the trading fractal parallelograms. As these points begin to come into view, you get to annotate trading fractal parallelograms. They create FTT's (notice the Capital letters) that are the points of the slower fractal. this is how three nested fractals are built by deduction and using deduced rules from critical thinking. Some potential traders spend 10,000 hours doing things. Most do not think critically in a deductive mode. See traderzones for a classic failure. Look particularly in the current thread where he confuses macro and micro, before even expressing anything on the OP topic of trade mamagement. See three others post appropraite micro general and astute considerations of trade management).
My two above posts are purpose serving. One purpose is to scope and bound all trading. Another purpose is to point out how the mind is built using drills. My posts may seem long; they accomplish putting on the table the W, W, W, W and H. Many rules emerge for various purposes. None of them prescribe W, W, W, W and H to trade. The market dictates trades. The trader does a routine whereby he get the dictates from the market. My person icon is the bridge. Problem solving is my trade. You experience such solutions in your life each and every day. The bridge from the market to the trader is the differentiated mind. We are building a repository in the mind that automatically summons what is needed to match sensing to do the MADA routine.
I posted the CW oriented trader routine called OODA. John Boyd is creditied with creating it for training fighter pilots. MADA is different. It is binary vector based so it can use binary logic which is non probabilitistic. OODA is probabilitstic as you see. We create the nested volume, price fractals as an addition to Observation. The box labelled implicite we repalce with inference of our differentiation. Under I Market, we build a display that enables us to "see" the markets. It involves two screens of panes. For k200 few panes are in use at this point. right now we have a 5 minute set of P and V panes. On these panes, soon there will be three neasted fractals projected into the future. Mulitcolumn log will begin to appear as a consequence of their being filled in. The rows will be filled in several times for each bar to note the M. Under Analysis a record will be kept (on some columns of your log) to define which of H1 or H2 is in use; the row will contain the V and P ingredients that document the binary vectors involved in the PM (parametric measure). Decisions involve choosing the one to one coresponding item from a set of five elements. This makes it evident how different OODA is from MADA. Spend some time lo9oking at the reality of the Orientation part of OODA. Chances are you will ID immediately with the five nodes interlinked in Orientation. By using a log and having columns for the status of each fractal and making entries several times within each bar for the ordr of events of the cases, SCT trading comes down to only binary vectors whereby the finite set for M and the finite set for A are always, in a binary way in a one to one corrspondence of their elements. Our personal resourses, of cultural, genetic and experience, ar not part of M nor A. Instead, we turn to knowing that we know by our orientation to the order of events in the nested fractals. Analysis ends with "continue" or "change" on the trading fractal with a given sentiment. we know that we know: 1. Where we are in the pattern, 2. What is next in the pattern, and 3. How fast the pattern is changing. Our inference from our long term memory is summomed to deal with these three questions. D of OODA is to hypothesize (to determine the bet). D of MADA has nothing to do with anything except to decide among: Wait, Hold, Enter, Exit or Reverse. Normally we Hold for each row of the log. A of OODA is a behavioral action based on the bet is a bet is the decision. Most OODA traders are sidelined most of the time because of the two feedback loops of OODA and because after A the trader goes to OO to see what is happening. most OODA traders are what is called freak out traders. They act on signal input and usally a single signal that is edge derived. Read some of the ATS coding threads. If continue is an output of Ananlysis, then the D choice is to wait or hold; this provides "CLOSURE" for that lap of the routine. As logging occurs, a change window occasionally opens. depending upon skills the trader drills down pane by pane to do the effective and efficient action, either behavioral ot to achieve closure. Logging takes a trader across a row to the last A of MADA; he cannot do freak out. As he goes axcross he refers to the lines above. By doing the logging drill 50 times for 50 charts this becomes a way of becoming accustom to the rules of doing MADA. By doing the drill of the order of events for the three nested fracxtals, the trader learns that the three questions follow the rows down the sheet. All change happens on ftt's or FTT's. All FTT's have ftt's associated with them. All ftt's occur after point 3's. 10,000 hours for OODA is equal to 10 days of charts for purposeful drillers doing MADA. People put off dong a routine in trading for a long time. They usually do not think up a routine. Most traders deal in OODA probablitiy trading. Few traders use a non probabilistic based trading approach. MADA is a paradigm shift outside of the box of CW and OODA. No trading can affect the huge pools of capital. The Pool Extraction Paradigm is exactly what its name says. PEP is parasitic to the CW and its OODA. Our problem to solve is putting a new first recouse in front of the present first recouse there by blocking it as a choice. The process is called drills. Mental change largely occurs as we sleep. the bofy of unconscious input is process to be in parallel with the conscious seeds planted alonga continuum that ultimately becomes differentiation long tem memory.
Now is the time to put the foundation in place. At some point B2B 2R 2B followed by R2R 2B 2R followed by B2B 2R 2B...... becomes a part of the spectrum of differentiation. We are seeing frenchfry and SKO putting this pattern to work in the nested fractals by building fomr the fast fractal to the trading fractal to the slow fractal. The 9 cases are the only possibilites of adjacent bars. The forming bar relative to the prior bar goes through several mutations of cases as the bar forms. volume leading price dictates how the mutation processes as the bar goes to completion. PEP and it applications is like stepping through the looking glass. You may be starting from the OODA side. Most experienced OODA traders cannot build the diffentiation to over come the aspects and components of OODA. You may see the reactive nature of OODA. A fighter pilot is most concerned with winning the dog fight. (See bighog, et al). We are anticipatory, instead, when we use MADA. The binary vector orientation gives certainty. Knowing that you know gives sufficiency. Building PEP and its applications rquired deductive critical thinking. tranferring it requires the experience of dong drills. MADA has as its basis a pattern. the pattern is a product of critical thinking. All annotations, indicators and the order of events make it possible to have rule sets for each part of MADA. the result is that the market offers and dictates the taking of the offer. The pattern illustration connects the sweeps chart, the scoring and the order of events of the pattern. MACD, the slow STOCH and the fast STOCH are synchronized with the sweeps, scoring and the ordr of events. There are seven leading indicators of these items. The OTR, DOM and S/S panes contain some of these leading indicators. Part I Market is where the panes are presented. IV Making Money is where the MADA dwells.