PVT stands for Position Vector Trading. It is used to trade a high quality universe of stocks Their particular characteristic is that they are repeatable and reliable. These two characterisitcs make it possible to trade them effectively and efficiently. For me, position trading is done in channels that are projected into the future and the price-volume relationship is what is used to deal with price movement as bars form and the drawn channels move into the present from the future. several indicatrs compliment the above for various reasons. A Daily Analysis Sheet is used to keep things up to day for people who have jobs or trade full time. There is also an Initial Analyis Sheet that is used to qualify sorted stocks. One element of this is scoring which is a three variable binary system that "counts" the natural cycle of a stock's price movement. The thee questions that are answered by scoring as vectors(magnitude and direction) are: 1. Were in the cycle are we? 2. What is next in the cycle? and 3. How fast is the cycle moving? This was named long ago "Tomorrow's Newspaper Today." Now it is PVT for short. Over the years this has been reduced to mechanical systems and the sheets have been automated using excel and import/export stuff. It is widely available worldwide. This all forms a "template" for trading on any fractal in any market it turns out. For people who want to become excellent traders, the way it is done is to trade stocks and build your mind. This is not possible for all people, however due to the nature of how the mind works. It happens that it becomes "too late" for a class of people who have had "experiences" that close down the mind to further development. Basically, I get all the blame for this phenomena and that is just fine with me. It saves me time in dealing with it. My agreement with ET precludes my commenting on the specifics of this difficulty and its specific examples which is a great out for me as well. The "template" is applicable to Seamless Continuous Trading after the mind has been built in PVT trading. I have not gotten to the SCT level here in discussing it in detail. SCT is an expert application. But by using parts of it, a person can assimilate all the piecs and become expert in terms of knowledge, skills, and experience as a high velocity trader. I did give you a good overview of PVT and as a person goes to expert, he uses a few knacks here and there to keep his capital producing a lot of return based upon optimizing. Effectiveness and efficiency allows a person to not have any involvement with the conventional orthodox financial industry foundational paradigm. I never went that route so I did not recognize how it can affect the mind's processes regarding effectiveness and efficiency for a long time. SCT trading using the template is an optimizing strategy applied to the leveraged markets from a neutral biased vantage point. Seamless and Continuous are the words that describe this. It involves 5 degees of freedom as seen as inputs and outputs. The black box wiring so to speak. The template is inside. Continuous refers to the fact that price is always giving profits through its change over time. A basic tennant is that SCT keeps you in the market all these times of price change. Seamless refers to the trading strategy based on staying on the right side of the market at all times. Since, like coins, there are but two sides it is a binary seamlessness and optimizing it just a timing concern from a neutral bias viewpoint. NOW is where making money is optimized. A bar is forming at all times. Using the template, it may be understood that the annotations projected into the future (channels on three levels and internal patterns and formations) are always there and they steadily move into the present where they contain the bar that is forming. A routine is used to deal with making money: monitoring sets of data; analyzing the data to have a conclusion; decision making from the cnclusion and fnally using these beliefs to bahave to make money (taking timely aciton). It the simplest way, this can be described as HOLDING and REVERSING as the future comes into the NOW where all trading takes place. This is an exact fit with the P, V relationship. A couple of details: holding and reversing is not atall like doing entries and exits. Optimizing is a foreign enterprize compared to the probability paradigm ofthe financial industry traditions. Luckily, most of the time what I said above serves as a filter to generally avoid any serious considerations by people for whom it is inappropriate. But sometimes, there are people who see what the market offers and then they connect the dots and this stuff is very important. There is a small third group who fail to be filtered and fail to understand that the time has passed for their participating in PVT and SCT; therefore, they conclude repeatedly and over and over something about their mental orientation.
Trader 28 wrote: Certainly a valid re entry. Couple of years with Kwikpop, I like it's expert advisor and a couple of it's tweaked MA's I'm in Jack Broz's room (Hotcomm) at the moment, got into this short late because it was so messy but he has been calling for it to fall all morning and certainly the 10 min MACD has been below it's MA and Zero line all morning, but I needed some convincing after that chop on open... he runs his room from the floor of the CBOT and trades the YM and bonds ------------------------------------------------------------------ Trader28, my first guest of the day is Ben Lichtenstein live from the floor of the CME. Ask Jack if he knows Ben, and I'll do the same with Ben on the show tomorrow. Ben's been on the floor for 15 years now. Ben is on @ 11am eastern till 11:10 www.cfrn.net tune us in one day........... Your simple strategy has turned into quite a thread. Could be because it works! I love simple stuff that works If you want to come on the show and share this with our audience, drop me an email ct@cfn.net
Price and volume are the major things to focus upon. Annotating them with three levels of channels and their repective internal patterns and formations out into the future is what makes them work for you. By adding the MACD and it's histogram you get to see a 0 based indcator work for you. Convergence and divergence are important as well as their intensity. we annotate these as well. The fast (5, 2, 3) and slow stochastics (14, 1, 3) serve two basic purposes and add some others aspects to the data sets. There are another equal number of ingredients as well. Here in this thread, however, the focus is on a smple profitable method and not focussed on making money. Making money comes to the fore for other reasons than having a simple system. I tried to relate to the Simple Profitable System by showing how and when it is turned on and turned off. SPS is an entry and exit system and the stuff here in this post is for a HOLD and REVERSE approach that is related to optimizing making money. Merit in SPS is measured by using it because it works when it does to be a successful entry exit system with an emphasis on entry. Holding and reversing is very different since it keeps you in the maket at all times, usually. A lot of people who are entry/exit oriented do not like to trade under some conditions. When SPS is not working, it is generally the same times that entry/exit people prefer to not take the risks of being in the market. Some people state that consolidation is a bad time to trade entry exit and thy recommend using only the trending times. the ratio of the two times depends on trading skills. Joe Ross feels the consolidation is abot 80% of the time so that could mean a trader is out of the market 80% of the time. Some people cannot differentite between retraces and reversals. they do not trade at those times. they are largely entry/exit type traders. So what we can see is that the Hold and Reverse is not suitable for most people and they really want to check it out. If there were any middle ground or transitionl kinds of considerations, I would say that the place is where channels are considered. I always am projecting channels onto the right side of my blank screen (the future to the right of the forming bar). I see when the channels overlap when a change is coming up. Most entry/exit traders do not use channels, have some future showing on the right and have it annotated nor do they look at markets as something that is makin money all of the time. It literally comes down to different people looking at the same market and they see entirely different things and feel different things are important. It is like jumping across a big canyon or something. What I use is optimizing and my charts and indicators do that for me by giving me leading signas all the time. they are set up and they work to talk t me all the time and I'm in the market all the time. I think that I am used to trading in consolidation and what is called chop. It is more or less like sailing into the wind. I am lookig at the telltale yarn in the sails and looking at the wind and its shifts on the waves. I am feeling the quarer wave change and the boat heel in changing ways. It is different than a power boat where people turn the power to different settings. When I go gliding I have to manage all the time too. by having a tuned set of annotations and indicators with their signals, everything keeps orking ll the time and what I am doing is holding and reversing to optimize getting to where Iam going in a manner that the conditions dictate whether its a mooring or a landing strip. I log the sets of data. The set speaks a conclusion about the moment. I stay on the right side of the market or occassionally switch sides as I take profits. I don't get in and out of the boat or glider.
By your describing what you are doing, it is possible for others to put in a "fix"for you by just a few adjustments. I hope some others can recognize these adjustments by making a few comparisons and, then, they can give you the segway to improved results.
From a Simple Profitable Method to Quantum Trading Wow! ... don't know whether that's Good or Bad. Still, I think should've started his own thread if he want to write a new treatise for the modern day-trader. Regards, JJ
While Jack has brought up some good points and things I will investigate further that may help me be more profitable I still like Trader28's KISS method.
JACK, For those of us who want to make a "good" living! Let's talk about "CHANNELS" for awhile. First of all exactly what kind of channel's are you about about? These are the channels I'm familiar with: (1). Bollinger Bands. (2). Trading Band Crossovers. (3). Kirshenbaum Band Crossover. (4). Keltner Channels. (5). Price Envelopes (trading Bands). (6). Standard Deviation Error Bands. (7). Trading Channel Index. (8). Volatility Breakout Bands. (9). Also, I guess a person could get the computer program to draw lines above/below the price movement. You need to be more specific about exactly what your talking about. Also, it seems to me, you might be talking about using: (1). Random walk index breakout system. Using... (2). Parabolic SAR (stop and reverse system). (3) Using "Channels". Which your right, you will always be in the market, with a position of long/short? I am not convinced this is the best way to trade because of the drawdown? And the heat a person could/would take? But I am an open minded kinda guy and I want to make a good living...So what do you have in mind that we can all plug into our programs and watch. Thanks Jack for your suggestions!!! snarlyjack
it is more like Linear regression channels or the outer forks in Andrew pitchfork. ps. Volatility Breakout Bands sound cool, let call it Volatility Linear channels.
Nkhoi, Thanks for your help!!! I do not have "Linear Regression Channels" in my computer program "Omnitrader" (?). However, I do have "Volatility Breakout Bands" in "Omnitrader. So...to keep my mind straight...we are using: (1). Volatility Breakout Band System. (2). Macd ( 5,13,6)... (0 crossover based system). (3). Stochastic's (5,2,3) (entry). (4). Stochastic's (14,1,3) (exit). (5). Possibly...Macd Histogram (5,6,13)... (0 crossover based system). In other words we have "TWEAKED" the Simple Profitable System again ...only for the better. Because it makes more money. With better entry/exit signals!!! Do I have my mind in the right place...? Thanks snarlyjack