Jack Hershey PVT System Testing (moderated)

Lists are important in monitoring PVT.

Here is one taken after the close of the day.

You can see how the columns are arranged on the list and how the list was sorted.

This list was taken on a Friday 06OCT06. It may be used by any person to plan their next week. If this thread begins to work out I will repeat the explanations of how PVT planning works either automatically and/or manually.

 

here is a second attempt at attaching the list.

 

Attached is the worksheet from two days later, a Sunday (08OCT06) morning.

 

As may be seen from the two illustrations (Universe and work sheet), PVT trading is a relatively slowly changing process with respect to a trader's portfolio.

This shows how easily a person can use the ingredients of PVT on a computer to display all that is of interest.

Here in this thread we are doing analysis, testing and clarification of PVT.

None of these can be done without a universe. For anyone wishing to use PVT it is a click of a button. In effect, it is self testing once the tester has verified that the script that allows the click of a button is correct.

How does one test the script available for getting the universe. This is done line by line by the tester and the tester does have to know what he is doing.

So far no one has posted that any of the scripts available in freeware or commercially produced script are faulty or have flaws.

That brings us to the model, development, use and transference of the Universe.

Joab has 27 years of trading experience and can't handle Jackspeak. He doesn't get the criteria, modelling, development use and tranference of something worked on by myself since 1957. This is true for 80% of the respondents to polls regarding my efforts in these areas. I have lost track of how many people became millionaires using the universe concepts over the 50 some years.

The universe criteria is stringent for one reason. All of the stocks that make it into the universe have a high repeatability quality.

"high repeatability quality" means that they behavior in a very very similar manner.

If a comparison is made with any other universes, the distribution of the PVT type of universe will lie the the right of most all universes in how narrow the group performance is in terms of just how similarly (use a reasonable sample size where p is <0.05 by any stat measures) the PVT members perform by TA criteria (See measures in TA From A to Z by Achelis and partularly the measures used in charts, lists and indicators of PVT). The phrase "they all look alike to me" is appropriate and it is the goal of the Universe.

Use the Initial Analysis Spread Sheet to observe how sorting 15,000 stocks narrows the Universe down to approaximately 150 stocks total in the Universe at any time.

Testing any stock at any time that is not in the Universe with respect to any writings on PVT is possible and the results obtained simply state that the person did it for his reasons and they are not associated with PVT trading in any way.

Basically the Universe is obtained by using Fundamental Analysis. FA is a guarantee of quality regarding eps and EPS. It is also a gurantee of RS and "they all look alike to me".

this thread is only for analysis, testing and clarification. Glossaries are locaated elswhere. So are the instructions for transference.

The Universe is part of PVT and it is obtainable with the click of a button.

 

The structure of PVT is defined and maintained.

The structural parts include a data feed; a universe selection component, a processing component, and an execution connection.

The process of PVT is MADA, a four part routine.


The results are outputted from the execution component.

This is the system of PVT.

Selecting the Universe is done with a click of a button.

This result is transferred to the processing component automatically or manually at the descretion of the user.

Processing is done either automatically or manually at the descretion of the user. Three rules are used to effect the timing of trading using PVT.

The results are accumulated using the automated system of the IB to which PVT may be connected in a variety of ways.

PVT has several collateral components to effect greater effectiveness and efficiency: these include four indicators and chart annotation. All have specified signal generation that is found in the PVT journals and references.

PVT also has limitations. It is not designed to operate with more than 100,000 shares in any individual capital stream. Share prices allowable are defined in the Universe selection script.

This post ends my introduction of PVT as a system that may be operated automatically or manually at the descretion of the user.

 

OK. Putting on software engineer's cap: can anyone, from the provided description of PVT, come up with a set of requirements that would allow someone to implement the system?

 

Yes, it has happened many times.

 

Primarily, we will be using five trading instructions here.

Buy for going long to begin a long segment of profits. and sell for beginning a short segment of profits.

In PVT trading Wait and Hold are also instructions used while the MADA routine is operating.

In PVT when a person becomes skilled enough or has the programming skills, it is also possible that a reverse instruction will be used.

From what you say, you are unfamiliar with how timing is achieved in a process that is repeated as a routine.

Consult the lookup table first presented and the three rules associated with the lookup table.

also take the time to see the MADA routine and recognize that it is an internal loop that has the virtue of creating regular closure and initiatiing another cycle of MADA. Here you get to find out out automating PVT enhances its effectivenss and efficiency.

What is going on here is laying a simple foundation in order that people can see how doing more cycles per annum is the most powerful influence on making money. In a few days after a lot of analysis, testing and clarification is done, we will be moving to seeing how about 100 cycles a year performs in any market.

I am used to working with paid programmers who have jobs since about 1957.

 

Start Here.

 

My mistake - i had forgotten about a dinner commitment earlier in the day. I plan to codify the whole thing and post the details. That's the primary objective of this thread.

I hope to start making progress over the next 1 to 2 days