Jack Hershey methods

Discussion in 'Technical Analysis' started by OddTrader, May 28, 2008.

  1. Why do you think JH methods not working?

    What are your opinions or experiences, good and bad?

    Please give us the newbies your positive and constructive criticisms. Thanks!
     
  2. Tums

    Tums

  3. I myself don't follow JH ways at all. However, I think most methods based on commonly-defined-indicators would likely have the same or similar problems that you had encountered with JH ways. Don't you think so?
     
  4. I know that you love the methods. But frankly, can you earn 3 times of daily range of profits? Constantly?

    No losses at all? Ever?

    Do you know who else can do that so far?
     
  5. astral

    astral

    Appearently you do not understand what Jack talks about. It's not about "no losses", "3times daily range". That is as irrelevant as it can get. When you start out annotating charts, after a while you get the déjà vus, you will begin to see, where price will go 10min from now. Later on, when you get to a point where you can fractally (2min,5min,15min,30min,..) get it together, you will have once again a déjà vu, but now you will be able to feel where price will go 10-1hour-1day from now.

    But as they say, it's subjective, then that is their opinion. But seriously, when you look at those charts we annotate, don't you consistently see up and down channels? I guess so, right?

    Let's say you and your companions will never "get it", "see it", "feel it", why not work from the probability of a potential up or down movement based upon a limited skill level of annotating.
    Take a look at callmate, she doesn't have the high skill level as spyder has, yet, in my opinion, she relies heavily on the probability of a movement based on her knowledge of the method. She's doing pretty damn fine, at her skill level.

    But again, knowing she only takes small bits and pieces of the intra day cake, you may want to think how spyder gets his cake of the day.
    Drop the "3times the daily range" bullshit, it's way higher than that.

    You will, without any doubt, break this comment down, but at least I tried to open your eyes.
     
  6. I totally agree!
     
  7. Jack's claim is 3X daily range but his documented reality is -24% in a trading contest, which he's admitted to.

    Every once in a while Jack slips up and describes something clearly enough to backtest it. Here's what I got when I tested two of his "methods."

    "Rocket" testing methodology:
    http://www.elitetrader.com/vb/showthread.php?s=&postid=1078242#post1078242

    "Rocket" equity curve:
    http://www.elitetrader.com/vb/attachment.php?s=&postid=1112121

    Buying the 0 to 7 turn of the "P,V Boolean relation" methodology:
    http://www.elitetrader.com/vb/showthread.php?s=&postid=1278985&highlight=buying+boolean#post1278985

    "P,V Boolean relation" equity curve:
    http://www.elitetrader.com/vb/attachment.php?s=&postid=1278986
     
  8. Tums

    Tums

    Jack Hershey described 2 methods in this EliteTrader Forum.

    He refers to the Equities trading method as PVT, and the Futures Trading method as SCT.

    There are many components to the methods, but both methods pay attention to the understanding of Price Volume relationships.

    SCT is the acronym for Seamless Continuous Trading.

    Jack is not the inventor of seamless continuous trading. Many people have traded seamlessly before Jack. Any Stop-And-Reverse method is a form of SCT. Another example is Moving Average Crossover method.

    SCT is not an indicator; it does not provide Red Light / Green Light trading signals.

    To be precise, SCT is not even a method. It is the result of applying the tools described by Jack Hershey.

    You can choose to apply an individual tool, a collection of tools of your choice, or all the tools, depends on your trading skill level. SCT is not a given, nor a prerequisite, for applying these tools.

    When one starts to learn the Hershey methods, he should not be preoccupied with trading SCT with 3x HL result. No first year med student can expect to do brain surgery upon graduation.

    http://www.elitetrader.com/vb/showthread.php?threadid=83604
     
  9. Tums

    Tums


    You have been the most dedicated Hershey Ambassador on ET. Thankyou.
    Your tireless foot-in-the-mouth effort is not unappreciated.

    Thanks for bringing this defining doc to the forefront again.
    http://www.elitetrader.com/vb/attachment.php?s=&postid=1278985


    ;-)
     
  10. Ladies & Gentlemen

    Now I officially pronounce this thread is a JH promotion one! Bye! :D
     
    #10     May 28, 2008