Getting down and dirty is where the rubber meets the road ...

Discussion in 'Strategy Building' started by charts, Mar 31, 2010.

  1. Thanks so much.

    As you see we now have a price scale and the volume pace is being done on a look up chart basis. (Check for horizontal pace line shift occasionally.)

    The time of day is a helpful reference for better understanding the daily catenary and the anticipation of expectd news.

    k200 is a tradable instrument. We can determine its capacity as we go along. Based upon the offer, we can come to understand adding of contracts from profits.

    I will note how acceleration , extension and fanning works as a way to gain more effectiveness and efficiency in trading.

    I'll use portions of this to make various points. Take a trip through the bars and find each of the various cases. Look for OB's and Sym's and Stitch's in particular. Notice how translation is response to volume.
    #41     Apr 13, 2010
  2. This post is on part IV Making Money. By going to the goal of trading and building an approach for taking trades, it may be possible to ascertain the "why" of a lot of the tooling used to make money.

    three tools will be mentioned in this post: the sweeps chart, the volume monitoring chart and the basis of the relationship of volume and price bars to the market PACE.

    This is a repeat text since I lost the text for some reason the first time I wrote it.

    The sweeps chart is nine tables that illustrate going from coarse to medium to fine in the process of MADA.

    the volume monitoring chart shows the path of volume from the beginning of a bar to its conclusion. Samples are taken and plotted about 10 times during the volume bar formation.

    Two matrices are used to record the realtionship of price to PACE: volatility crossed with PACE and overlap crossed with PACE.

    PACE is done with a record taken from 1600 most recnt bars and decils are the basis of the PACE divisions: VDU, DU, Low, Medium. High and Extraordinary. The most recently posted chart shows the rainbow of the PACE deliniations.

    As a result the two matricies show vertial and horizontal Gaussian distributions on each matrix. The mode and mean is well defined for all columns and rows in each matrix.

    Logging is done during each bar's formation while trading and doing MADA.

    On the volume display you see the rainbow of the market PACE. Also you see the "shadow" of PRV as the actual volume accumulates.

    The trader uses a trading strategy based on his accumulated skills. Here in this post, I work through using SCT to trade k200 on several skill levels by going through the day's volume catenary in the CONTEXT of market pace.

    The volume monitoring sheet is divied vertically into zones that are skill diffrentiations. You can review the 30 most common edges and use the sheet as a Venn diagram to define the regions for trading the various edges. The conclusion that can be drawn on a macro level is that edge traders can get in trouble when market PACE changes after their repsective entries. Almost no edges articulated deal with the shift is risk as a consequence of market PACE change. That is years into the future for financed research.

    On the posted annotaed chart, we saw the beginner and more skilled traders enter on the open in bar 1 or bar 2. The trade was short. Lets delve into the tools used to trade K200: MADA and the finite sets of each part of MADA.

    The VE caused the entry under E volume (use the first letter or couple of letters to differentiate PACE for logging). A trader knows where price is on the nested fractals. As the bar opens its relationship to the parallelograms on each fractal is clear. The future price volatility is also clear from the 1600 bar lookup that is updated bar by bar.

    Where on bar 1 or 2 is the entry taken. for reference you can refer to typical prints of mine with respect to the moment I determine to enter in SCT trading on the ES. the K200 is no different in terms of the open entry. You can note that I am working through degapping still as I deal with being in the market and on the right side of the market. think of it as like a traffic light chaning as the market opens and you proceed confidently as you move through the intersection following the rules and regulations of being a driver.

    Long is the trade for experts and it is short, a little later for lesser skilled and at the time of the expert's first reversal. this has been narrated in this thread previously. Go through your 3 ring binder, locate the narrative and hi-lite it as a reference. You can also add notes on the back of prior pages.

    With E volume known 12 seconds into each bar and displayed as a shadow, you know how the bar is going to turn out immediately. Volume is leading price as you see.

    After the entry, you are looking for the order of events to unfold. For an expet he knows that he knows he is going to reverse on the VE appropriately. The beginner is required to get organized and settle into the day with his engine hitting on all cylinders.

    Everyone is probably able to conclude that the bar is going to be labelled with respect to price and volume according the the ordr of events. after all the labelling to be used is already in the log at some point in the bar.

    What is the bar relative to its prior bar; it has changed sevral times. Wecome to trading. I believe as you read this you are getting the message about "knowing that you know". Leaving the intersection is easy as you follow the signal from the traffic light. you drive defensively and SWEEP the scens according to a routine. IT is DEFINITELY NOT OODA.

    IT IS a MADA experience. When you do MADA you do an informal MADA. You do not hypothesize and test the intersection. Instead, you take certain and sufficient data by monitoring; you get the analysis element form the finite driving set of options and use the CORRECT one for the situation by DECIDING. Your behavioral action relfects this decision. In rapid fir you repeat MADA over and over as you drive.

    In trading, your skill set determines how you trade. You enter when you know you know not before. You hold doing MADA as long as you know you know as you procede through the order of events of your skill level.

    Ends of patterns is where trades occur. The purpose of the trade is to be on the correct side of the market. The trade window opens, stays open and then closes. On the referenced chart a beginner holds through a series of ffaster fractal ftt's to get to the FTT of the trading fractal. An expert has done a tradepriorto the short trading fracatl beginning pattern. he trades on each point of the trading fractal: 1, 2, 3 and FTT.

    So far the annotaed charts for that short had volume shortsightedness and the RTL could not be determined on the othr annotated chart. this puts these potential traders in a place where they get a signal from the market that tells them one thing: they do not know that they know at some point. when you do not know that you know you sideline and simply go to work on getting back on tack.

    When you are back on track, you go into th market and keep on track.

    A beginner is going to an FTT. An expert is going to an ftt.

    This is an overview. Next I will get down to details. the NLP picture is a picture of using tools to trade and always knowing that you know on your skill level. K200 is very tradable; SCT on K200 in an application of the PEP.
    #42     Apr 14, 2010
    Sprout likes this.
  3. In trading, doing a routine is the driving force. Equipping your self to trade focusses on building the mind to have inference to match what you sense. Drills are what builds inference.

    when drills are done, you will experience questions arising. The answer to the questions comes from doing drills.

    As you watch a bar form in real time it goes through mutations. the beginning case is matched to the PRV of volume so you know how the price bar case is going to turn out.

    This experience is called "anticipation".

    As you become more amd more earnest and purposeful, you will notice that you cannot do everything in a smooth orderly manner. This is called "growth". As you do MADA you find out that it has rules and doing trading is NOT rules based. This is part of the primatur of PEP and its applications. Knowing that you know all the time replaces the rule based trading approaches of CW and its modus OODA.

    As you proceed you will begin to notice that your viewpoint of other alternatives changes.

    Obviously the pace of this thread is limited for several reasons. Imagine what it wouyld be like if 10 near past days of trading were posted as complete clean charts. They are not available now because it is not important enough. If they were then by next Monday a lot of people could go through the expereince of being up to date on nested fractal on many levels.
    #43     Apr 14, 2010
  4. This is a zoom in post.


    By filling in the PRV progress on volume and noting the mutations on price, you get to see the nested fractals projected into the future get filled as the future moves into the present.

    A beginner is dealing with following all the rules within each component of MADA.

    Annotating requires that line segments be completed or extended periodically. This keeps the order of events at a conscious level in terms of dominance and the part of the pattern under way. CONTINUE is most often the result and H1 is at play. Money is being made.

    For beginners, holding through the non dominat part of the trading fractal can be affected by regarding things that are emotionally related.
    At some point, the deductive process underway, becomes the more important foundation for the emotions.

    When it soed, then the CW and OODA researched emotions are no longer present. Should they appear, this is a signal that kmowing that you know is back on the table and you are being told to shape up in your efforts of the moment.

    I'm sure that from reading the posts and even just the titles of the threads in ET, that it is clear how not knowing that a trader knows is the primary topic of potential traders. Apparently, there is a lot of learning going on with respect to being in the dark while money is at risk.

    Adjusting to holding and reversing is part of MADA. Being on the right side of the market implies being IN the market. The emotions of trading can come from knowing that you know or they can come from another source. In OODA and CW type trading, emotions come primarily from using the account performance as the measure of a trade. The two factors are stops and targets. By laying these aside, a trader can focus on making money instead.
    #44     Apr 14, 2010
  5. First try...
    #45     Apr 14, 2010
  6. Zoom into the first part...
    #46     Apr 14, 2010
  7. polford


    10 days of K200 (zipped)
    #47     Apr 14, 2010
  8. AllenW



    This may be slightly off topic since it is a different market but I think it applies to the discussion---
    The situation in the attached causes me great frustration. This morning I recognize the completetion of the pattern R2R2B2R at the blue arrow. I see the B2B across the RTL and am anticpating the 2B at the red arrow but instead get the increasing red????
    Then after I decide it must have been a "what wasn't that" I see VE on two levels (blue elipse) and spend the next hour or so looking for M1 and M2---but alas I do not see them(maybe they are there but??)
    Where am I missing it?
    Thanks---I really do appreciate the current discussion
    #48     Apr 14, 2010
  9. AllenW


    #49     Apr 14, 2010
  10. AllenW


    Here is a better chart--sorry

    #50     Apr 14, 2010