The current mix of Q's allows us all to focus on becoming successful in any market anywhere and on any fractal if and when sufficient liquidity exists for that market. Bcoming successful has two themes: learning and its result, themental differentiation deployed in ucsonscious competence. Not all markets are coverd by IBD and its RS and EPS. If you read WJ O'N's bio (page 173 of "24 Essential Lessons for Investment Success"), you find he arrived on the scene (1964) well after his heros did and when they made their contributions. He refined the work of those who preceded him and makes a supporting contribution to the world's sectors of the financial industry. Markets now covered by IBD are all over the globe and you can do what WJO'N did before he provided his srevices to the US markets. Darvas, and everyone else was in this boat in the early and mid '50's and they succeeded by using a QA sort of the availalble stocks. The IAS can be applied anywhere just as the EPS and RS analysis can be applied anywhere. The criteria is Universal. The Universe comes from the IAS and the criterion of 5, 20% cycles in 6 months using instruments in the float and volume ranges with ownership considerations. These volume aspects set up the equivalent of a band pass filter, and as a consequence the instrumnent performance in a market context has a set of characterisitics. These have been verified by testing using a sample that is about 400,000 events. No changes in the characterisitics were made as a consequence of the test. what this means is that the characterisitcs were determined correctly and the vrification is an excellent corroboration matter. All of this foalls into the realm of science. The catenaries of individual stocks come from their fitting into the Universe criterion. This is a cart and horse consideration and in this case it is bilateral. Do not use this advantage if you cannot reason through its validity. Trader666 proved conclusively that using a lousy Universe and lousy timing will yield NEUTRAL statistically insignificant resoults. It is definintely MY FAULT that he could not get any results. He got no results and a person either recognizes his failure to get results or not. If a person follows Trader666 down the path of ignorance, it must be MY FAULT and those persons Can be blameless for their ignorance and irrational ways. WJO'N started with 500 bucks and in 26 months increased his capital by 20 fold. WJO'N used QA and a rotine for trading stocks similar to PVT. Davas used QA and "box" trading o achieve the same. Trader666 messed up and he, blames me. If you want to persis and belive the catenaries do not work, then do not use the Unusual Volume trading rule one pager on stocks that fit the Universe criterion. Those who practice PVT trading use it sucessfully on the stocks in their Universes as determined by QA criterion for Universe members. this is not depenent on EPS and RS. EPS and RS are very very useful for sorting stocks and many many methods of trading use the bsis of the EPS and RS as contributing facets for making money. As part of the IBD MeetUp, vidoes and transcripts were made. Also additional canned documentation served as an adjunct to those meetings. One such document was an analysis of 12 different methods of using stops for protecting trading in PVT. This document had tabular comparisons, examples of each method and web references to full explanations of theapplication of each method. The lower half of the IAS is devted to the method I recommend and the method is fully articulated in writing and in illustrations. A feature of the approach is to sample data and use an averaging techniques to assure success. In ET I have posted the pragmatic usage, IN ADVANCE OF ENTRY, all illustrated. This was used by the contributor of a chart, oft used here as an example of failure, to exit at a profit by using such protection. As a general practice, there are inherent difficulties in proving something doesn't work. Using the null hypotesis in science to do proffs is not the same as proving something doesn't work. Proving something doesn't work fits into the "stupid" category. In trading the bar for entry is pretty low and it is possible a lot of stupid people get involved and they do stupid things. Trader28 and trader666 and traderzones are profound example of this mental incapacity called stupidity. They get to be identified with the part of trading that is the stupid part as a consequence of their personal demonstrations. I will address how learning deals with knowing that you know about "correctness" next. Ignorance is a logical state for anyone browsing before considering learning. Once learning gets under way, avoiding stupidity is one of the concerns.
Parents are a great influence on the learningprocess of children. Fortunately for me, my father studied on his own for several hours each evening. As an MTS at BTL, he was studying cutting edge science and contributing to the knowledge base in several arenas during his life. One lasting observation he made was: "When you are learning, unassisted, the most inportant thing to learn is how to determine that you are learning, correctly, anything you are learning." Today we know how this self checking is part of anyone's informal learning processes. Self learning is based on critical thinking and critical thinking is a deravative of what is known as "mindfulness" and its subset, meditation. Fortunately, there is a plethora information on how people grow and these abundant stories show how all cultures have common traits that have been known since recorded history began. The footing is firm for assuring self learning is a almost automatic and successful process. The order of events in learning dos not deviate from a path long described for our cultures and societies. ead everything Campbell has written for starters. Also red Greek and Roman literature. Lets get "learning to trade" out of the way as an enterprize that leads to success. This side trip will make it easier to go through the six levels of expertise.
Appendix B of "24 Essential Lessons" lays it out in a few pages. I have observed 53 years of succcess in trading. As WJO'N points out he has seen fifth and seventh graders outdo the pro's any day of the week. Essentially, learning to trade is building the mind and the mind will NOT let you build it incorrectly. If a person is persitently doing things wrongly, it is because his mind is NOT built to any extent. Look at Trader666, Trader28 and Traderzones. they do things improperly because they have no alternatives. Their minds have not grown to the minumum level to be able to work in any way that relats to trading. You watched sappjason take a non critical detour to somewhere awy from building his mind. All of you KNOW, that you mind prompts you ALL the time as you learn. The mind is inhrently rational for growing itself into a better and better resourse. Irrational stuff will not find a place in the mind where it can settle and become the first rational recourse for your mental processes. All learning is an accumulation of knowlege that fits together with other useful knowledge. You are ALWAYS at choice to ignore the questions your mind brings up to further its growth. Learning purposefully and earnestly is like the Critical Path Method for becoming terrifically skilled and knowledgeable. So to become an expert trader, you must acquire the answers to the Q's your mind asks about. To focus on learning, you use the motivation of how money is made and how you think. Money is made through price change and how you think is doing things is knowing that you know as you do things. PEP and its applications is a simple approach all based on price change. for the model and reasoning scientifically the binary vector was dictated by the market. 4 out of 5 people reject this as not provd by non stratified reandom samples created by stupid people who do not know how to anaylze traders and trading. (See sappjason and his eroneous results on many topics). We focus on the pattern, MADA and our trading accounts growing according to our business plans. The pattern and MADA allow our minds to lead us in learning by answering the mind's questions which the mind designs to "put the pieces together. Market data gives us a lot of information all of which sum up to always knowing that we know. Learning is filling in the blanks effectively and efficiently. "Study" is what traderzones did to gt his 250,000 sale price for his approach which he successfully sold to people with 250,000 dollars and who believed his sales pitch. Learning is NOT studying the market to get an edge or a set of trading rules. We are working to reach a way to always have "resolution" about what is going on in the market. for any trader, he has a view of the markets that is a combo of leading, NOW and lagging facets. for SCT we only have about 10 to 12 leading indicators of the ES price pattern going on. This means the mind can get all the answers to its questions. People go along generally do what they want and sometimes they let the mind ask the questions it needs answers to. trained professional people are usually very ggod at what they do and usually are not good at trading. WJO'N points out the why's and wherefor's of this. We need to GET AWAY from the pfofessional skills and knowledge type of stuff and get down to "resolution" of the mind's needs. So I hve gone down to the granularity of the markets Anhd we have the panes that display the market down to this granularity in several ways. we can see what is going on and now all we need is the matching stuff from the mind that allows us to know that we know. What to keep and build upon is detemined by the basic processes of the mind. the mind is in working order even before we begin to learn. By NOT using this mind operating system, we defeat the learning process of building a comprehensive and automatic long term differentiated memeory. Lets eexamine doing "rsolution". when you are in a state where you do not know right from wrong, it is becasue something is missing. Resolution is an acquisition program under the control of the mind. the stages of resolution we will call : Awareness, compassion, and wisdom. Look them up in a context of mindfulness.
Awareness is a state of mind where the mind's questions are on the table and anything thought up for consideration and associated with a topic of interest IS OFF THE TABLE. Lets take up the thought: "I can't trust myself when I am trading". this is not a mind's question. It is a question that "comes to mind" with respect to making your account larger or smaller. Take it off the table. Our viewpoint is that profits take care of themselves ; the trader's job is to know that he knows what is going on. We have tools to know what is going on. We build those tools.
You can look at the six basic streams of considerations of what got you to what you are today. Take all of that off the table. Don't review what and how those six streams work. sit and look at your screen and see what is on your mind's mind and do NOT think about what is on your mind. we are beginning resolution. At any time you MUST be able to collect a complete loggable data set that has one and only one match to an element in the Analysis set of MADA. This is true at 300 seconds.... one minute latter, three minutes later and at the last part of the 5 minute bar. the next bare the timing is at 180 seconds and 60 seconds.... Why? because that is the nature of the intergration of 5 min and 2 min bars. what is happening inbetween these cast in stone seconds as you "work? It is changes in the patterns. Is your mind knowledgable about the change order of events in the successiion of patterns? Why isn't it? the snawer is that you will NOT let your mind either ask questions or keep spraying you with "incoming" knowledge it makes available in a timely manner. Logging allows your mind to ask questions. Do you write down "looking for" in the rows below the row you are filling in? Do you keep the symbol set available near the forming bars so you can just slip it into its permanent position in the order of events. How does drilling down to fine resolution follow a critical thinking order of events? It is NOT rules. A person sits from a bar (37) and goes through 5 to 7 bars doing aoccational behavioral actions that do not make money. What is your mind asking you for that it need to do its mindbuilding job? If nothing is being asked for nothing is needed. If you mind is not working, it is stalled and frozen because you are insisting on dealing with stuff that needs to be taken off the table.
As a compare and contrast with professions and with trading as an expert, lets look at the two as embodied in one person. Lets say further that the person takes on a new task of making his trading fully supported by technology as it is available today. Three modes of personal operations are involved. im my example I will chose a bank loan offer as the profession and the guy graduated from Wharton. In this example I can relate since I was an ADJ at U of P and a staffer at UCSC so I associated (worked with profressionally by putting in time) with LLC's comprised of Wharton profs who provided financial services to the best corps in the world. This bank officer is getting paid to make money for the bank doing loan approaval and passing bundled loans on to an operation in cherry creek which packaged debt. prescriptively to those who "made money" by holding debt and providing capital in return to the bundled debt providers. On weekends watching football included having rocky mountain oysters chef prepared for us rooters and routers. Why can't this guy trade successfully in the markets? He is not trained and he doesn't know how to "get smart". how dod wharton get him a job and a successful career in doing bank loans? He got formally trained after getting into wharton because of his undergraduate performance. He "gamed" education successfully. How does he "build" the technical support system for his trading activities? He "games" learning computer science and gets the tools to build the support system. And then he has to apply the tools to build the pragmatice support system. What he learned about "gaming" learning can work anywhere in any application simply because he has the brains. Now lets lok at the missing link in this example. He does not know how to trade as an expert in a manual manner. If you can get into this thus far, we can mount the resulution effort and get this bright guy to have his support system. There is a bridge. The bridge is simple and as yet unknown to the person. Without the bridge he cannot get to be an expert trader in markets.
we give this person a display system. We give him a routine to follow. finally, we give him the means to build his long term memory to trade as an expert. As this is completed he can use his compter science to build his support system and make money as an expert more or less autoimatically. Why is there no shortcut to building the support system by just coding it up usi8ng computer science? That Q iand its answer is the major answer that ET provides to all. The guy cannot let the thinking process begin and go to completion. It begins with awareness goes to compassion and reaches wisdom as we already know. Getting to beginning with awareness was easy to do in his other "gaming" learning endeavors. He is bright and he can "fit" into the learning system which creates success through testing and doing practicums on the knowledge content in existing systems. Testing leads to self trust because there is pragmatic "proof". Meditation is the path to Awareness. The bridge begins to be built by being alone of being guided in a group to learn to look at yourself. "I couldn't just starting to trust myself right off; it took time." A person needs to self test himself to know that he is learning something correctly. Anything that is incorrect doesn't work. Look at Trader666 proving that. Look at trader28 mimicking Trader666 every day. It is definitely insane to do something over and over and expect a different result. the bridge begins with awareness of the mind and how it does things. I referred to the monkey mind before and I struck out in getting across in how you let that mind do what it wants and let it have the attention it demands. when you do this "Yessir" and let it control you, the monkey mind is happy. We are doing something else to become expeert. When expert is reached, then and only then can the technical support system be built using computer science tooling. Meditation coherence is measurable using the EM wave PC metering. 80% coherence is common when meditation is being done. what is the result? The person is now crossing the bridge and he is AWARE OF WHAT COHERENCE FEELS LIKE AND THINKS LIKE. having this conditional criteria he can reagrd everything subsequently as on the path to expertise whereby he is acquiring the knowledge and skills to rip on up through all the levels of expertise. The "trust" in this process and how it appears in the paace is also well known and well described. "Acceptance preceeds" the appearance of trust and we get that by awaerness first as George's father would say.
The four topics that follow are : learn to annotate, learn to analyze learn to decide and learn to act.
A mother brings two oyung sons to a WJO'N dail long traing. Seventh graders beat pro's using CANSLIM to trade stocks. WJO'N asks why did she bring her sons. she says I made over a million dollars using your approach so I want them to learn it. See pages 145, etc of 24 Essential Lessons...... Here we begin to let the mind go to work after awareness is established. after thye bridge of listening to the mind is in place. fifth and seventh graders can do parallelograms by using their established long term memories. Parallelograms contain the pattern. the pattern is the referent space for the pattern. you are using binanry everything which is condu sive to application is computer science. Continually fucking up parallelograms on all levels is not something which needs to continue much longer. for anyone, OCD's excepted. elementary school teachers tell their students to stop fucking up their parallelograms and they stop. what is nice about an enclosed space is it's certainty. If aperson is not certain whether priceand volume are in the pattern in the parallelogram, they look elswhere where certainty is found and their mind becomes AWARE of this certainty. Accepting the certainty leads to taust and and trust leads to more than awareness. It leads to compassion. I am an example of compassion. what it means to me is that I am certain about whether I am inside a parallelogram or not and I have the advantage that I know that parallelograms overlap. Lets go through the "boundary conditions" of parallelograms. where does this subject come from? It does not come from the monkey mind. It comes from the minds proclivity for getting anwsers the mind needs to fill in the pieces of what the mind is building. The test for correctness is "does it fit?" with what is already there through the mind's processing. Take trader666 who failed mentally to understand that in a cycle each part of the cycle is equally present during the flow of the cycle. In his quest to blame others, he did not deal rationally with his mind's questions. He said "yessir" to his monkey mind and fucked up the rest of his time spent. He should go to a WJO'N class and sit next to seventh graders and watch them learn. A person starts anywhere to do parallelograms. He does it until his mind is finished asking questions it needs answers to to fill in all the pieces of parallelogram annotating. As in the example of the bank loan officier, the bank loan officer is not learning to "game" learning to trade. Nor is he trying to devise rules for doing his computer schience based technical support system. He can't build the technical support system until his mind is build to trade as an expert. Why are we working on parallelograms? this is done because the deductive reasoning done in a scientific way came to the deductive conclusion that parallelograms are the only container, they over lap and they contain only one pattrn. the bank loan officer has never been asked at wharton, or anywhere else to think up paradigms or models or anything scientific. Computer scientists do do science but it is according to tenchnilogical hard, soft and other wares. computer scientists "game" learning computer sciences. Resolution for parallelograms involves just drilling down to the granularity of the markets. We need to engage markets and making money with each other. We do this through the mind building process. Awareness of the market's offer becomes more and more clear through the container aspect of the parallelogram. It also becomes more clear by the order of events of the logging. logging is made convenient by having a vocabulary for the columns of the log. and a vocabulary for the parts of the parallelogram and the parts of the p,v pattern. In one of the meditation centers of the world, fpor 5.000 years about five basic approaches to meditation have gone through systematic refinement. Practitioners take their time. There are also martial arts that originate in those places. they are interwoven with the meditation based thrusts. In martial arts, success takes care of itself. the practitioner's job is to be very comptent in knowing that he knows what is going on and just using his learned martials arts to succeed. This is precisely parallel to PEP and its applications. Wharton does not teach trading, meditation or martial arts. It teaches bright people to make fees and commissions in the financial and busiess industries by being best organized and "biggering". Big is beautiful in business. And small is beautiful is science. Read "Small is Beautiful, the story of intermediate technology (Appropriate Technology) by E. F Schumaker. NCAT is a place where the CAP programs in the US support poor people as an outgrowth of OEO founded by the late Seargent Schriver under the JFK admin @ EOP.