Strictly from a psychological point of view, the missed opportunity rattles around in my head longer than a outright loser.
We use a heirarchy of nested fractals. Within each is a P, V pattern for annotating trends. The pattern is symmetric whether long or short in sentiment. As unusual as it may sound, the moves for P are three and the corresponding moves for volume are four. Volume leads price. Here is the hierarchy: name line weight on V and P Channels traverses tapes BBT sub sub sub
We use a hierarchy of nested fractals. Within each is a P, V pattern for annotating trends. The pattern is symmetric whether long or short in sentiment. As unusual as it may sound, the moves for P are three and the corresponding moves for volume are four. Volume leads price. Here is the hierarchy: name, line weight on V, Line weight on P Channels, thick traverses, medium tapes, thin, thick BBT, dotted, medium sub, dashed, thin sub sub, dot dash The patterns are B2B 2R 2B for long R2R 2B 2R for short. Trends overlap. The B2B stands for B overlap from point 1 to RTL (non dominant declining volume); 2 is BO of RTL; and B is dominant increasing volume move to LTL. 2R is the non dominant volume move to the RTL point 3. At this point the trend is drawn as a parallelogram using pts 1 and 3 for RTL and pt for LTL. The last dominant volume move is to the end of the pattern, FTT also point 1 of next pattern. FTT stands for a geometric occurrence. Price Fails To Traverse to the LTL on a relatively high volume. What most traders seem to fail to reason through is how and why the pattern is the only possible pattern of P, V movement. It is done with logic in a Scientific Method setting where deductive reasoning is used for a Hypothesis Set and its Parametric Measure. The SM uses a null hypothesis approach. The uniqueness of the HS and PM lies in the market dictated units of measure: binary vectors. The market dictates this requirement. It is difficult to reason through this requirement. Occasionally the pattern has to deal with nuances of reasoning. VE (volatility Expansion of the container is one of them. If a person cane recognize that volatility can vary over time, then he is able to handle its increase and its decrease. We use a logic solution for each. The decrease appears as yellow containers. The increase appears as a new wider parallel LTL (only on the LTL side). Both of these matters add degrees of freedom to the system called the Pool Extraction Paradigm. Trading for us is just a means of extracting capital to solve other problems. Problem solving has a financial component and eliminating it as a restriction is self serving. There are many depictions of the pattern that are available. Constructing it from a word description is possible once a person is oriented to the appropriate market measures. In addition to the VE LTL annotation, when possible the RTL is accelerated within the non stationary window. the three terms in my quote were: BBT meaning Building Blocks for Tapes VE meaning container Volatility Expansion (which is a money velocity increase) X B meaning translation Black. In trading two cases of adjacent bars advance trends: higher high and higher lows is translation long; lower highs and lower lows is translation short. ere are 7 other cases and they go in yellow boxes. These cases change as time passes within the yellow bow or in a series of yellow boxes, then translation begins again. Basically PEP and it applications answer three questions at all times in the Present. Having these answers from a Routine called MADA (which is in a deductive contrast to the inductive OODA) allows the trader to have emotional feelings of comfort, support and confidence at all times. In a word, he "knows that he knows". MADA stands for Monitor, Analysis, Decision making, and Action. Most often the Action is HOLD. We do not use entry/exit orientation as is evident from the three questions; which are: 1. Where is the market in the cycle (pattern)? 2. What is next in the pattern? and 3. How fast is the pattern changing? As you see this is in stark contrast To the CW gambling orientation explained by OODA (See John Boyd). There are many people here who have determined that the above is not for them (4 out of 5 reject it immediately). There are others who feel more strongly. They feel people should be protected from this approach. In some ways I agree with them. If a person is looking for a short cut for making money, then this is not useful. If a person is unable to reason using logic, then this is not for them. If a person is not able to build his mind to a differentiated state, then this is not for him. The people who feel the strongest, negatively speaking, assassinate my character daily with their creations; ET allows this to go unmoderated as you will see from the fall out of this post. I've only been in this orientation for 53 years so far. Four generations of people have used this approach successfully. Many people have proven that this approach does not work for them. This does not mean that they have proven the approach is unworkable. there are also many people who have adapted part of this approach to their approaches to improve them. There are many many approaches to trading. There are a lot of descriptive measures common to most systems. When these measures are applied to our approach, the values attained are not in the usual range of values with one major exception. If the measure is the market's actual offer for any given period, then with skill and knowledge and purposeful experience, on any fractal, the performance effectiveness and efficiency approaches this market based limit. because there is little overlap with PEP and its applications with the CW, it is sometimes a challenge for people who apply the CW standards to PEP to obtain whatever they thought they were going to get as a result. "unbelievable" and "astonishing" are two of the scientific descriptors these people use. They are correct in how they get those results. If you are a visual person, make a list of several nested fractal orders of events from the pattern description. If you use channels to BBT's as the nest you will have a list of about 135 lines generated on an Excel. Doing it by hand a few times allows you mind to get differentiated rapidly. Then you mind supply what you need as you sense charts forming the pattern. The list is how the market flows and can be used as a cheat sheet when you are trading. An alternative is to draw the geometric nesting for a complete cycle. I email each day's activity with chart and/or some focused discussion and always the carry over for the next day's open (including news for the next day).
Thank you, got it! I have not looked at the sub-tape descriptions very much and will take a closer look at it. Wishing you well. ramora
Answerring question 1. helps avoid both your "troubles". Right now, as you read this we are in a short tape with a BBT 1 short and a sub 2 long in both the ES and the YM. The Premium (smart money bias) has been long for three minutes. This point in time is not one that has any subjunctive aspects. the trader has just seen the long tape end with a BBT 3 long having a sub 3 long. All had FTT's simultaneously. If it happens that the long tape resumes, the trader is already long and he makes two more points when the BBT 1 of the short is cacelled because the pattern short on the BBT level did not complete. It is all kinda interesting in the context of the two troubles your are asking people to compare or contrast. Where and how does your trading plan ever create these troubles?
I think it's wonderful that your magical trading has absolutely no tradeoff between missed moves and losing trades and that you get the best of all possible worlds. However, this poll was designed for mortals.