Stretch and squeeze is the spread between YM and INDU. You can do a search on squeeze and stretch on this forum for some information. Obviously new traders should avoid trading congestion.
1. You carry over yesterday. 2. Every bar counts so use all 81 bars. These two comments may sound arbitrary for the following reasons. We dropped some overnight data. The synch is often messy and can foul up the situation. This, therefore, is a compromise. It is one where the effectiveness and efficiency are lessen a little but hardly at all compared to the benefits of just using your senses when the cash markets are open. The underlying markets (cash) are very important to us because the primary concern of futures intruments is the ability to provide protection for unknown future cash market stuff. Think wheat and bakeries and farmers all making guaranteed profits. The following is background that will be helpful, I believe. Get a copy of Fortune's Formula or at least read pp 144 of the 26SEP05 BW. I am a product of the US science search of the late 40's to early 50's and also I lived in the peculiar climate of BTL then the Darvas period of NYC and Greenwich, Conn. I was bouncing from Shockey and Shannon to Princeton on Tuesdays to Science Fairs on tesla and half lives of radio active elements. In some manner or means, I focused on making money by changing the odds that other people see. Maybe it all should be called "what do you need to know to go". It is very different than people think. To extend the life of a magnetron by a factor of 10 and the gain computing accuracy in analogue computers by tensioning capacitor leads and 0 setting dc amplifiers 48 times a sec when you are a teenager summer student given a MTS status at BTL really skews how a person sees solutions to possibilities. You can get very analytical about defining what is going on and how big it is. Time and size. What changes the odds more than anything is "knowing what is going on" How much "bandwidth" do you need to "know to go". There is some character here who attached an annualized chart of oil for 20 years where he "believes" something related to money and oil. It is just amusing to me to read the stuff. In any event, when you look at making money in markets during the looking you immediately see that as time passes what is important keeps changing. On all fractals as well. Since making money occurs from price change, I figure that reducing risk is the key factor for making money. Merging Kelly (risk) and Shannon (bandwidth) is obvious to me. Then the next level for this is optimising the game. SCT is designed to do that. you must move AWAY from MACRO and towards MICRO to optimize. Risk in minimized by minimizing bandwidth to get to "know when to go". A human cannot go MACRO and look at everything or have a devise that delivers the result of looking at everything. The objective is not to push everything through huge bandwidth. It turns out that price change at any time hinges only on what is affecting it at that time and in what way (size of effect). See P, V relationship. So people do the poker thingy. It relates to the rules of the game, though. See Thorp as well for BJ. They are abiding by known sets of risks (probabilities). All graspable as the cards are put in play and taken out of play (so ever slowly). SCT is set up to adjust risk by using the minimally required info (bandwidth that changes) to eliminate risk. All annotations take as much as possible out of play. This changes the risk. If you can see that channels, when projected, establish where prices will come to in extremes as a simple consequence of the market character in that timing duration not changing in its performance (meaning the same thinking of the players still exists), then you are allowed to focus on the next more sensitive (you "look more closely") spaces (because the "outer" risks are gone). It is the example of posted odds compared to real odds. Everone sees the posted odds and SCT has changed those to the real odds because to operation of the market, not generally utilized, is being used by SCT folks. SCT eliminates, successively more and more possibilities (probabilities) by looking in only the remaining areas where remaining risk exists (collapsing bandwidth requirements). Closing off alternatives is not ordinarily done by others who trade, apparently. The search of props for anomolies is an example of not closing off things. Looking for things that are high odds efforts is the opposite of lowering the odds by recognizing what has been "blocked" from play. Edgers look for sets of things with high probability vis a vis "beginning". After that targets and protection pairs set the slope of the equity curves as long as the market itself does not change. So I am saying to you that time and size are a pair that enables SCT to allow you to keep your routine focussed on what is important at a given time in the succession of time. As it turns out the "size" is articulated by the coarse, medium and fine. This means that as time passes during the low risk that is created we stick with just coarse. As we cannot continue to create lowered risk we turn to medium, etc.. So for fine we are dealing with the vernier to know when the profitmaking is exhausted and which signals that the market is opening up to the next opportunity. You can see that fine is followed by a period of coarse in the new tradebeginning Our projections at that moment are "most open" to making money. You "know to go". As humans we are equipped for any time that is going on. The sensory system is coupled to our emotions and they arise as a consequence of the biochemicals our brains induce. It is a mind game. these biochemicals facilitate our thinking with respect to what we are seeing. The sweep system is a human engineering tactic. So is the four part routine for monitoring, analysis , decision making and acting. These two levels of repeated activity enforce getting you to "size" as they perform as "timers" on your use of sensing and it biochemical counterpart of emotions. I am suggesting that this is a higher ground to operate in and as such it is a way of changing risk as percieved by others. Perceived risk in poker and BJ comes from the cards and associated rules of play. Perceived risk in the markets is changed by the trader by his being able to be at the right sensory, etc. place at the right moment and moving on accordingly. You can always welcome the emotional component as an aiding factor. It is how the biochemical function is made to be highly operational. There is nothing like being able to observe the hole on the putting green moving away faster than price which is moving towards the hole as you are holding the position you entered on a reversal. This is a much lower risk than what another person has done to enter based upon a predicted target and placing a protective stop based upon the combination of the entry, R/R, and the perceived target. SCT allows you to observe, etc... from risk minimized vantage points. "knowing when to go" comes about more or less like tacking a boat in a race. Maintaining hull speed is also part of the game when you are tacking.
absolutely terrific. Knowing the prior day's spread, you get to see the syych arriving as underdamped, overdamped or critically damped.
This is my first attempt at drawing channels for YM 2 minutes in realtime, so any constructive comments appreciated. I have noticed that over the few days I have started, I typically average about 20-30 trades using channels and YM 2 minutes. Is this typical, do the more experienced traders get a similar number of trades, or does this indicate I am constructing too many channels ? If the number of trades averages between 20-30, this leads to more commissions, is this an issue for trading SCT ?
Chicken this is not something for you to try. What I do and what you do are very incompatible; think of me as someone who is very unlike you and so I am very unimportant in the infinite scheme of things. Figure it this way. 4 out of 5 people are not intereted in what I do. Keep being one of them.
Do you not recommend this for just me or do you not recommend this for all ? If this no longer works why did it stop ? Did it ever work ? Why was it recommended then but not now ?