I dont think Jack has ever claimed to have invented rockets. That would be ludicrous. He simply points out that the best time for a beginner to enter the market is when it is moving stongly in one direction and gives a couple of aids to help them know when a trend is beginning. Then he introduces washes and volume as a fine tuning aid. He has his own names for some things but he just points out what occurs over and over again in the market. Whether someone "gets it" or not is something he cant control. Obvioulsy he did not invent sct either since many people have been doing it for a long time. Big players and market makers do it all the time so I dont see why it is so difficult for people to believe that it can be done.
In an article linked on a recent thread here Taleb talks about what he learned in the months he spent in the pits talking about how the locals, led by the stronger players move from squeeze to squeeze. They take it as far as they can in one direction then take it back the other way. If you can detect these shifts as they are occuring you can front run them but you are talking expert level monitoring skills which most of us will never attain.
It is very good to see that some people here have identified the positive correlation between ProfLogic's stuff and Jack's stuff. I have taken the time to learn both, and it is well worth it to me. Regards Oddi
i doubt this. big players or mm move volumes that for sure couldn't be handled with such a style. not even in the es i'd say. i recently talked to somebody from a prop firm who told me that the best traders there make $6 million a year trading es intraday - BUT - they trade 50 times a day with about 300 lots - so do the maths and you get a result of $20K per year/lot - which is about $80 per day/lot - and that as mentioned with 50 trades per day. so don't tell me that big players make 30 pts. or so per day/lot. CONSTANTLY - because nobody will ever believe this.
I like the comments by Scientist in the Sexy Idea thread: "SCT is nothing particularly revolutionary, either - Large traders, institutions etc have been using it for a long time. "Market makers" use a very similar approach on almost any issue. The basic ground principle is about having positions open in several time fractals synchronously, in order to maximize profit potential in each given fractal trend. Many large players do just that - They use moving fractal envelopes that encapsulate various fractals. As each fractal's individual trend keeps moving, money is being extracted along crucial waypoints on one end of the fractal, while new money is being infused on the other. Eventually, the trend will finish completely (flaws become frequent as faders are having a go at the trend), at which point the respective trades in the envelope will wash (go completely flat). After the wash, we stay either flat in that fractal until a new trend is defined as arising, or we simply reverse the envelope position(s) straight away, which is the ideal approach. I am currently myself learning to do that, and while it's demanding to become really good at, it can boost your profit-potential by several hundred % in comparison to trading just one timeframe. In fact, if you trade one timeframe only, even given SCT standards of staying in a trend until flaws occur, you will still give up over 80% of your daily profit potential - and this can be mathematically proven."
yeah - Scientist - he was the no.1 smarta** of all times her on et - somebody in his early 20's who is probably the best trader who will ever live on this planet. ... believe whatever he says.
yeah that's more or less my approach, intense durin' the first 2hours after the openin' and on the last hour of the tradin' day..i usually keep boucin' between 2-3instruments and try to squeeze a .5-1% or more per trade...obviously losses come along the day and sometimes they pair the gains because the instruments i trade are very volatile, but sure not every day the stocks i watch have multilpe trends so i have to adapt takin' very few position trades or none at all and scalp much more...lately it has been a struggle due to lack of clear setups and liquidity/volumes makin' readin' trends much more difficult.