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Inside Boolean Algebra.

Discussion in 'Professional Trading' started by Kurgan, Oct 11, 2012.

1. Kurgan

The essence(purposeful).''So i told you the three variables..."

P, V, A/D

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0 1 0
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1 0 0
1 0 1

1 1 0
1 1 1

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attached...

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2. Kurgan

Thanks Jack for your support.This simple task assigned to me was done by you,and assembled by me.At least we have a conception now,what the basis of the market is(in theory).Now,if you don`t mind a little practice?Knock...knock...May i come in?

3. Kurgan

Binary

First derivative maintains sign, second derivative is zero.

reference from the mathforum.org.

There also was said that:''but
if one uses these to confirm the presence of an inflection point, then you can get into trouble because none of these are necessary.''

Can you say why?Sounds contradicting.

Bohr syndrome;lack of knowledge

Repeated failure.

Now,can we make a step further from theory?

4. Kurgan

''attached...'' ''cycle''

Additionally,if you dont mind me asking,why there is no blue line of price in the second leg down in the pattern?Someone has missed to draw it?

5. frenchfry

You could also ask: Why do some lines have not the same length of price or the legs of the cycles?

6. jack hershey

I'm doing coding now and on a break.

so I just read the new thread.

I appreciate your work. It exceeds what I expected because you are revealing how you think about what is before you.

When I was learning theoretical Physics, the Professors were imported from the Nanhattan Project.

Bergman was an important teacher becasue he made students do things to help themselves keep moving forward. We had to work in triads (teams of three). Grading was a non issue since the incentivation was provided by our employer: go to any university, you have salary plus all expenses covered. your home is your decision employer pays for it. when finished you do what you want and work anywhere you choose. We will offer you more in everyway.

the triad was set up so one person colud just listen; another would listen and take important notes; the last member only took comprehensive notes. Then the class would be repeated without Bergman present and just triads sitting together.

Plus there was homework to do advanced problems where about six transalted books were the resourse.

All work on company time.

We were all in the top 3% of the GRE. I missed two questions because of "unit" problems so I was above the cut off.

after reading the above, I can make a point. for the learning you need to not draw in information beyond the scope of what is on the table.

how markets operate is simple but counterintuitive. I'll mark up your answers with the correct answers with all of this in mind.

7. jack hershey

The essence(purposeful).''So i told you the three variables..."

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Quote from jack hershey:

1. Determine the three variables of the market.

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P, V, A/D correct

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Quote from jack hershey:

2. Put them in the order of their relative frequencies.

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incorrect so erased. slowest is P, volume is 2x P, A/D is 2X V and 4X P

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Quote from jack hershey:

3. Use the results to be able to score where any instrument is in its trending cycle

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you used the binary "counting" of the combinations to get the decimal "score"

this tells you information and you have to study it thoroughly to get it to work for you.

Once you put the scores next to the 8 parts of the price. you see, for the first time how a full cycle of the market functions.

you find out a long is 7 to 6 to 5 to 4. You find that a short is 3 to 2 to 1 to 0.

I wanted you to go through learning this system of how the market works. So far you have not articulated any of this.

If you mind could do the drill of going through looking at three concurrent and one chnage at a time of the market variables, then, a whole new world can appear to you.

This world has its own language and its own mathematics.

By parsing each and every fact into its what, how, why and when, then you begin to see a very elegant system begin to rise into your consciousness.

most people never SEE the market.

Who here could do the maths to determine the consistent systemmic color of bars? About no one. this means almost no one can use bar color for anything in trading.

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Quote from jack hershey:

4.Now draw the pattern...

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8. jack hershey

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Quote from jack hershey:

here you get to see how "scoring" has several elegant mathematical properties.

I may have asked for some work to be done to show these but this is not a private school fifth grade class where screaming kids would be shouting out this and that. why do they delight and get so excited. they can still "SEE" things.

I used spacing to help a little.
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Quote from jack hershey:

You can see entries and exits are identical in one way. Which way?
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Binary

This is a universal anser that stares everyone in the face and they do not see it at all, ever.
the correct answer is that all three variables change simultaneously. So you see a person could code a system quite simply by just coding up this phenomena for any trading fractal he wished. But in this situation a person has to develop and design the functions and the operators and the resulting signals to have the ATS "show" the reversal at the proper time. At least this can put on the table what the problem is and what is required to solve it.

Why does a fifth grader scream with delight as she discovers this before the boys do? the reason is ,is tha she is looking what the class put on the blackboard and they are looking at nothing else. At some point most potential traders screw themsleves royally by doing inventions that step out of the box or what is relevant.

SPM was such a failure. Six cases were involved and a 7th was chosen and the method when down the tubes. read this failure unfold if it has not been deleted by now. A fifth grader would have stayed with the six cases and not gone to the mistaken 7th.

So you have to just keep looking at what we are talking about.

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Quote from jack hershey:

What is the common characterisitic for the inflection points?
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First derivative maintains sign, second derivative is zero.

reference from the mathforum.org.

There also was said that:''but
if one uses these to confirm the presence of an inflection point, then you can get into trouble because none of these are necessary.''

Can you say why?Sounds contradicting.

you did three things to not get the answer in this answer. they are: research, state a reference, counter with an invention.

the correct answer I was seeking and which is offered with excitement by young children is that two of the three are changing concurrently when inflection happens to the other variable (the one that makes the money). You can note some specific things about each of the variables that are underdiscussion. each variable oscillates at a relative frequency and the shift in the oscillation is significant. My comment could be judged as vague but it also for a learner be considered "leading" the person to begin to think about market, their variables and what, how, when, and why things happen the way they do. So I have given you an incomplete answer but I am asking you again to begin to think. If you do complete the answer by staying in the place of the discussion and using the additional information I have not laid out for you song and verse. THINK is the IBM slogan. That is why they signed me up for theoretical physics and why I know quants don't get the job done.

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Quote from jack hershey:

Can you now describe the mental shortcomings of the person who uses the early exit?
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Bohr syndrome;lack of knowledge

]True and they get caught in the inflection trap by "being" the vry people who cause the A/D variable to change suddenly.

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Quote from jack hershey:

Do you see why there is no differentiation of minds following the 10,000 hour futile path?
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Repeated failure.

Now,can we make a step further from theory?

there is one neuroscience based reason. they do not build their minds by having a collection of facts that can be put together in a continuum. that is, they have functions, operators and indicators (mathematically speaking) AND none of them can be assembled to form a system of any kind. you will notice these poeple are on the sidelines more than they are taking the market offer. they have two separate emotion sets: one for being in the market (fear anxiety, and anger) and one for the sidelines (relief from anxiety, and fear and anger). what allows the entries is fragments fitting together unimpeded; exits are paine driven. They have no connection between an entry and an exit. read the last five posts of wide tailz to confirm this comment. he explains how he feels in both cases and asks if anyone else feels the same way. It is not a good idea to tell him that trading as an expert is different than what he experiences.

Now you are at a point where with 25K you can make 1000% a year if you use a good Universe of stocks. A 1000% of your capital is where you are a year from acquiring that capital. the limit is 100,000 shares per trade. My best with 100,000 shares is just 17 points net for one trade. It took 31 partial fills.

9. jack hershey

All charts and maps have legends. So far you have not been using the chart legend but only using the legend you invented to look at what you want to look at.

As you see in words, the colors show when there is a persence of the color. The key word is "greater" it is almost a gerund but it is only an "er".

the three variables are shown on the chart. there will never be a blue for greater on price when price is not meeting the legend requirement.

It is ture that both long and short price movements can make money for us. that is probably why you will be in the market all of the time on any instrument that has enough other participants trading. there is a name for this phenomena and we use it as a go/nogo measure. think: liquidity.

If you wish to add the "making money" legend to your chart go for it. just pick a color and apply it.

10. jack hershey

the lines are difficult to understand.

I use NLP techniques to separate the workers and the non-workers.

therefore when a gerund for greater is not in vogue for a color; then the color is shown by its absence. take smaller as the opposite of greater. this stands for decreasing. decreasing is show boldly by no corresponding color.

try to take you mind back to fifth grade where your mind could look at a picture and see what was in the picture.

we are speeding up the learning process remarkably. viewers are seeing everything on the charts and showing their anxiety, fears and anger about all the things that are NOT wrong on the charts.

you can tell the process is speeding up because I have so much to explain per square hour.

this is really good. It is much better than people just expressing mistaken beliefs and telling me I am wrong.

As is well known, markets work best because the majority always have to be wrong for the knowledgable and skilled to make money in trading.

Back to coding for a while.

#10     Oct 11, 2012
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