Iterative Refinement

Discussion in 'Journals' started by Spydertrader, Jan 3, 2008.

  1. To describe SCT as a 100% rule based science is a misrepresentation as the system contains a discretionary component. The rule based component is certainly derived from the fundamental structure of the market. The rules are universal, repeatable and therefore scientific.

    The repeatability of these rules in trading is however dependent on a discretionary component. This component is a necessity when a trader applies the rules in order to see what is going on "NOW". Because the rule based system at times allows for multiple possibilities the trader is dependent on his experience and his subconscious ability to recognize patterns in order to construct a correct representation of real time events. This discretionary ability is trained by internalizing the rule based system and using it as a guide for the mind's subconscious ability to recognize patterns. As you can see in Neoxx's post pattern recognition feedback is experienced as an almost organic rhytm. Hershey refered to it in a bunch of posts as "sports memory".
     
    #12091     Jun 19, 2009
  2. Neoxx

    Neoxx

    What did the market say?

    There’s more to this than cold facts and frozen logic.

    Subtle differences, critical components, Jack’s circle… Trust + Tells = Value.

    C, T, A, G… the nucleic acids. A modest foundation, such simple building blocks, yet responsible for the bewildering array and rich complexity of life.

    Spyder and Jack supported our learning, though there was no obligation on their part, and certainly no entitlement on ours.

    I thought it a curious thing that, more often that not, Spyder answered a question with another question. Those more patient than me may not have been so easily frustrated. Those less stubborn than me would have seen the reason sooner… he had no choice.

    There are things we must see through our own eyes, discoveries we must make for ourselves… it’s not about the answer, it’s about the process. Looking beyond the obvious, thinking critically, comparing similarities, differences, testing our conclusions in realtime… and emerging with fresh insights, a different way of seeing.

    A wise man said you can’t reverse engineer the mind’s differentiation. So we do our best to follow the footsteps of those who blazed the trail.

    I don’t claim to be there; but I’m getting closer.

    More to this than facts and logic.

    What did the market say?
     
    #12092     Jun 19, 2009
  3. I must plant myself firmly in Romanus' camp and by inference, whoever it is he is quoting. This is a learned method with a well-described, though at times difficult to appreciate, set of rules. Discretionary = contextual which is also rule-based. Facility of application comes with thorough knowledge of the rules and experience in their application. Jack likes drills. I can't stand them. IMO, one of Jack's better analogies with respect to the learning process as it relates to this method is the driving the car thingy.

    Jack likes to talk about the market symphony but to my tin ear, the 1,2,3 cadence varies greatly with respect to both frequency and amplitude and as well the transition between parts of the piece can be unpleasantly abrupt. Like one of those wretched late twentieth century classical compositions.

    There is no mystical, magical, incomprehensible reordering of information by the unseen engram bot. In the presence of ignorance we all too often summon the darkness, in one or more of its protean forms, to explain what presently lies beyond our ken. To say that we understand how the human mind works is a joke at best but that does not mean, of course, that we should cease trying to do so. It is always good to remember that we are using the thing to try and discover how the thing we are using to discover the thing, works.

    The morning unwinds as anticipated. The RFTH gap is there for a reason. The smart money put it there. The smart money is the market.

    lj
     
    #12093     Jun 19, 2009
  4. ehorn

    ehorn

    Trading in the NOW ... but pre-filling the log with anticipation...

    a low range "W" day...
     
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    #12094     Jun 19, 2009
  5. nkhoi

    nkhoi

    mid-day
     
    #12095     Jun 19, 2009
  6. Chart:
     
    #12096     Jun 19, 2009
  7. ehorn

    ehorn

    The market is very generous in its part. As the future unfolds the market simply closes off certain possibilities. The trader has a simple role in the partnership. Listen to the market and stay on the right side. Listen to the market tells.

    Have a great weekend everyone.
     
    #12097     Jun 19, 2009
  8. Ditto.
     
    #12098     Jun 19, 2009
  9. dkm

    dkm

    By which time I have usually made the wrong decision...

    I must be deaf as well as dumb....:confused:
     
    #12099     Jun 20, 2009
  10. dkm

    dkm

    Ehorn - Thanks for posting your chart. Something doesn't seem right with the b2b level 1 from 10:15 to 10:55. It is followed immediately by an r2r 10:55 to 13:00. If the b2b was correct we would be left waiting (and holding) for 2r2b to complete the level 1 sequence. The gaussians are meant to "lead the way" but in real time there is frequently more than one way to draw them that makes sense at the time.
     
    #12100     Jun 20, 2009