At 10:17 PT on the attached chart. All may now genuflect and send me your money. Or your teenaged daughters, preferably.
Blasphemy! FYI, Jack is "in the market at all times... making money all of the time..." If you don't believe me, ask him!
Please enlighten me to what time series you are seeing things from as asked in the previous post (P, ticks, V)? Apparently you have gone from know understanding of stochastic processes to sum. Y/N??? Answering these posts is proving to be an excellent source of finding out how different an alternate side of the spectrum can be. It is very different and some would say, thank goodness (ie. the whole bell curve thing, good with the bad, negative EQ curve, with the positive EQ curve). So let's break this down even furthur since you require simple explanations. We know you won't accept the reasoning so do not be hypocritical and accept any of the following logic. In trading, you can only make money by having price change (ie. sequences of BID/ASK changes). YOU (T6), see price either goes up or goes down and you say that it does that randomly. Every single transaction can either be executed at the bid or at the ask. It cannot be executed anywhere else, not mars, not on the big screen, nor 5 levels up the DOM ladder. It can only be executed where there is the next available resource. The DOM has BID FIFO from which one type of execution hits, and an ASK FIFO from which the other type of execution hits. The RANDOM ARRIVAL OF TRADES CANNOT GO ANYWHERE ELSE! When you (T6) look at your T&S YOU (T6) see a random sequence of ticks (ie. heads/tails coin tosses). When I see T&S, I see a long sequence of ticks eating away at the BID and ASK FIFO QUEUES. Their ARRIVAL to eat the queue is random. Their sequence of which part of the queue is not (ie. if you are one type of execution you eat from one side, if you are the other type, you eat from the other side). NOT RANDOM mon ami. Look at it closely! You won't see it jump around RANDOMLY to eat higher or lower up. The auction mechanism that is there does not allow for it. So here is yet another one of yet another series of things you may not accepted. The BID/ASK PAIR has to change for you to make money (there is one exception)... THis is why the DOM/TICK chart was brought up earlier. Because money making is based on the BID/ASK pair changing, it then becomes possible to focus in on what's it's precursors. Look at your strings of ticks, you do not see them lining up and eating away at something. You see them as series of random up/down ticks. I see each tick as related because they can only be doing one of two things, eating the ask or bid. Nothing else. Once a side is eaten away, PRICE CHANGES (non random) and a new side is eaten from... In other words, you have incremented one handle into a profit taking direction. For you, price going up or down is random because you cannot see how it is that price is going up or down. I look at the road in front of price which is a V component... Your series of ticks looks random. For me their random arrival does not result in a RANDOM price change. For simplicity, it is like a car that is low on gas. When you run out of gas, you cannot go any furthur. Look closely at what is the gas tank on the previous chart. When you run out of gas, something has to change mon ami! Again, reread the attachment you keep posting. It is a map of the price trail. Like any map it makes alot more sense when you use on the terrain. You see objects and recognize when you are at any given point. Your statement that you used the same wealthlab code and got different results then the same person who wrote the original wealthlab code is beyond any of us. Clearly something is amiss... I know you don't see this but the PMers do and as usual you have allowed for some people to see if there is anything that they can use. Nothing more, nothing less. As usual, you are doing a SUPERB job.
You've exposed yourself as an ignorant poser with your own words. And please, speak for yourself. Try to get your facts straight for once. Don't say what I see or think as you've learned to do from your master, Jack, because my posts have obviously gone over your head and you haven't a clue what I'm talking about. I understand how the order execution process works and you seem to have some of the basics down. You've said that trades arrive randomly and on that I almost agree because it's usually the case but not always. But it's clearly lost on you that when it is random, the bid and ask FIFO queues are a cumulative consequence of the random arrival of trades, and that the extent to which the random arrival of further trades interacts with the queue and eventually moves price is also random (most of the time). You could easily verify this with a stochastic simulation if you knew how to run one which I doubt.
666, it's like he never heard of hidden orders or "one showing" orders. Once you've seen thousands of market orders banging against a thin single or double digit book, you can never believe in the Tooth Fairy again. Reminds me of gobs of sperm trying to wiggle their little heads into an ovum with high standards. But save that for a discussion of the DOM, if they ever get there. They can't seem to get past 1-2-3. Retards!
Do the DOM now. we are not going to participate for the time being for the reasons stated but that is cool too. We have a host of topics that build the mind in an order we prefer. For years you have played the respondant game. So has mostly everyone else. Step on out Use the four games video tape as a take off point if you wish. Go for it and put that QED at the bottom.