Just found this thread. Thanks Jack for the post above. Your ideas are always refreshing and some of the best food for thought. I have a quick question. In reference to position trading, while working with a sample market of 30 or 40 instruments. How do you view the "always in" methodology in this case. If you have six posistions open maximum at any time I wonder if you think that using SCT type trading is feasible in this scenario. (or is having six positions open at all times the equivalent to SCTing one market) Thanks.
great question. the PVT, at expert is all in all the time too. The quickest answer in the camtasia called putting the pieces to gether. Where we centered on the "unusual volume chart for the trading sequences. The six positions open that divided the capital is the equivalent. I haven't introduced in detail as yet the "cross over trading and the neutral bias trading where trading short is a factor. What it comes down to to emphasizing the exponent of the compound interest formula. We go from 40 to 60 quite easily by being sharp. At some point the aspect of having to do scaling in and out becomes a reality. when this is apperant that it is a modus, then you are shifting blocks of money out of one stock into another. It is a laced operation. basicaly you have on unusual volume the SIGNAL that the door is open and there will be a price breakout in the am within an hour to hour and a half. You also see what you own is not making the increasing PRV so that stock is peaking. you use 10% of cumulative volume as the amount of blocks you can be running in each. i use an example at the stream limit of 100,000 shares. the exit takes 30 and the respective entrance was 20 So you are blockiong out and blocking in using the cummulative volume and the block sizes shouwing on the T&S. Electronic is convenient these days. In the past it was a case of keeping your broker trained up and on the ball. i prefer women simply because they are reallly concientious and past being salesmen and schmoozers. So when you ramp up to becoming more efficient you look at some slight shifts I like to trade into the peak and that saves a day. I just leave stuff on the table it looks like but it isn't you gain another lap on the compounding every once in a while For entering, you can go to pm entries because you then have the money. and you know the "news" of the BO is going to be sniffed out by others and then the herd comes in. going in late afternoon set you up for front running the arriving herd on the next day Often this is a gap. Look at NTRI to see this last year. Those were 3 day trades that got the gaps. The result is true compression and having lots of days to add on the exponent. All three day trades is exponent of 80. And as you see on NTRI the take per cycle is up to 30% per shot. Over 12 days you did 4 cycles of three days each with 30% per shot. Personally, I appreciate your Q's. when you see people frequently who are doing these trades more or less indiepenently but also simultaneously, it makes for great conversation. I only meet every two weeks with them but they meet in between weekly. It is not like the ET threads. It is a very real world where they are doing this. In the "putting the pieces together" cantasia and its companion illustrated document that is an actual person, Tom, who is causing his capital to go to 10 times his starting capital in a fixed matter of time. we took 31 picures of the "batting order that day to see the action. In fact you see the hand written notes to set the days of an entire week up on a Sunday morning. This can be done twice in any year. My world is getting people to do this and then they can be free to help out others. This year I will finish writing, etc. I hope that the pragmatic examples of real people doing this in a real place become very helpful to others. Lo (1999, 2005, 2005) has figured out that people are capable (Adaptable). He is unable to address how because of intellectual constraints, but that is okay since others have done that. I will also shift back into an academic orientation as a sidebar and prove in our paradigm. Frankly, it could have been done long ago had I felt the urge. It is perhaps better to follow up on Lo's AMH (2005) with the pragmatic goods on the amateur retail reality of the potential.