Jimmy Jam, I looked at your chart. I just think their is a more accurate indicator than the Macd 12-26-9 on the YM 2 minute chart. The Macd 5-13-6 is more accurate. The Stoch 5-2-3 is more accurate. snarlyjack
Speed of entry and accuracy (as you call it) are not what is required at this level of trading. Consistency of implementation is. Once you've trade the basic method for six months and made money with it (a trade setup using these basic parameters everyday for the past 10 trading days for at least 2pts ES) you might look to change it, but until you've traded it, you can't improve on what you don't know, and you definitely can't code it into an automated system. *** It's consistency and discipline in trading their edge that gives a trader the ability to succeed at a basic level in the markets. While this is really just a beginner level thread, (and there's a lot more involved with making serious money in the markets) it's a very good beginner level, and gives any trader a solid base to begin to operate from. Good trading, Jimmy Jam
Jimmy Jam, I totality agree with you!!! I have learned more from this series of posts, all 2000 of them than I have ever learned from a book. This kind of communication between traders is what makes "ET" such a great site. And...I've learned a lot from your posts also... Thankyou snarlyjack
Here is a synopsis of the commentary that arose after my yesterday evening post. There are two paradigms at play: the gaming and the pool extraction. One has unknowns and the other uses optimization based upon that it is known that a pool is being extracted continually. The 5 minute fractal is chosen to afford the trader a situation from which to extract capital continually. There were 14 points in the day where the segments of extraction had closure and coincidentally the next segment began. For gaming type people who trade this is an unusual circumstance. It is though one point in time for them would have to serve two gaming circumstances which they find, ordinarily, to be opposites. This is tough to deal with and you can see that some heads are hurting already and this is just the first consideration for making money. I am not criticising anyone. I do comment on others as a way to aknowledge where they are and what where they are means in terms of moving forward. Many people have asked snarly what his trading signals are and to no avail. He may not know that a trader uses signals to trade to makemoney. Or he may want to keep secret his specific trading for some reason as trader28lite chooses to do. I have to refrain from posting prints or logs because it prompts a whole sector of the ET population to come forth and explain to those they are protecting from me, that my results are not correct. and real. They are, in fact, not possible and I am always falsifying what I am posting. This is normal for ET and recommended by ET controllers as a way of allow the freedom to all persons who want to do this process and take up space in the forum. It is corect that the signals on the STOCH (5, 2, 3) can be used in ways that cause more or less money to be made. could only post one chart on the 5 minute to show the place where the action would take place by using the "simple" standard. To make the "better" use or "best" use regquires that the trader look at the indicator and it's signal rather closely. I introduced the idea that the signal line is "flapping" and many got to see that happening. I appreciate your doing the work to see it. The crossover is the signal for both long and short trends. Snarly now sees it for te long but he fails to see it for te short. This is common for most people to not see the symmetry and it is because they have a bias in trading. snarly has, as we see, a long bias and maybe he will come to have a NEUTRAL bias as time passes. He has spent time getting to his bias and now has to get to a different bias. How to we take the maximum profits per day using ONE indicator and its ONE signal? We do it by taking the signal at the right time within the period over which the signal is offered. The signal is often offered just once or for a very brief time. when this is happening it all works out quite well. People have ststed that there are times when the signal look "grey" to them. If you get to see this as what is happening, thenyou are moving forward and becoming more and more sensitive to the market. This is a giant plus in learning to be a trader. Reason dictates that we work harder on this grey circumstance when it occurs. This is where a person reasons through the possibilites that the mathmatics of an indicator puts on the table. STOCHcastics is a word that has a meaning. Perhaps some of you belong to the international stochcastics society which is populated by many PhD;s. Two lines are used in STOCH; as yet we are only using one line. Because there are two lines, they afford a much stronger and more powerful use of the indicator. We an now tap that power which s as yet unused. I am attempting to open doors for you to become more skilled traders. The two lines have relationships that change over time. These chnging relationships fllow sequences of types of relatedness. They cross, they converge and they diverge. hey individually peak and trough. Their continuing difference in value product a "histogram". Over about the full existence of the indicators lives, I have tracked their performance. I have been trading longer than the existance of the indicators. Perhaps this is why my comments in thread have such a negative effect on the thread in which I comment all according to how a person reads my comments. For the signal that is being generated at the 50% you can determine how good the signal is by looking at the relationship of the two lines that makeup te indicator. Thestrongest signal ocurs when the cross of the 50% is made when the lines are diverging. That is to say, the sentiment of the market is growing more pronounced as it appears at the crossing of the 50%. This applied equally to the up or the down cross. Soak this up. The weakest situation is when it appears that onlt the fast line wllcross and it is questionable as to whether the other line will cross. All other relationship are in between these two. Now lets go back to making money all the time. The signal is used to take profits and to simultanteously start anopther hold for making more money in the next segment. Here is where a trader becomes an expert. (takin the140 points of the 16th out of the market). from now on you look at the fast line and the relationship of the fast line and the slow line. Two things on the same indicator: a fast line crosing the 50% and how a relationship exists. You can write down all of the relationships as a list from best to worst. Then for 20 days put check marks next to each and see how often they contribute to the decision. Also note when each occurs during the trading day. By doing this you are "drilling". you are drilling into your mind when you can make the most money using this one signal from one indicator. After a while you will be being told to trade at the right time by your mind almost automatically. Consider this. With ten contract on an index, what amount of money will you make in a day? 100, 500, 1,000, 5,000, 10,000, 15,000, 20,000, 25,000, 30,000, 40,000.......? I did not post all of the values I have seen others diong what I do achieve. This post and here and now is stating that a person can start with one indicator and its signal and over time by using the dull power of the effort, larn to build his mind by doing drills to be able to trade better and better and better. It is the opposite of "inventing" new and improved ways of doing things. I first asked a person to debrief on a day. He didn't. I asked the person to make a log. He ddn't. I see that many people did though. They, I feel , are leaning forward and working. I say GOOD WORK to them!! They have excel spread sheets. they see the range of possible success on 14 actions. They see that there are more questions. They ask questions and they get answers from several people. They work together to become better and have understanding. what makes the difference in earnings on a given day for 10 contracts between earning 500 bucks or 40,000 bucks is the process of developing knowledge, skills and experience. I trades the DJXX before the YM was invented. It was done by phone with no indicators. there were days when 900 points were nailed in less than 2 hours. All traders at that time were poorly informed and had no fantastic PC realtime data processing support. Today, it is all there for anyone for the taking if the erson does the work to acquire skills, knowledge and experience. I see this happening here and now with many people. This is a fine thing and it will help many many others down the road. What are the considerations during the day when price is not moving appreciably? Well for one thing it is hard to loose money when their is no price movement. Suppose you go along fr a while and their is nothing going on? That is the time to make sure you log is compete and that you have your charts fully annotated. you can put all the signal marks on your chart. You can notethe divergence or the convergence. You can note when the histogram maxes if you run one. when the market is stident and strongly stating the sentiment, you can be focussed on making an end of a profit accumulation be best for starting another accumulation on the other side of the market. You CAN long day after day which side of the market the sentient is on. What is it like to always know what the market sentiment is? What is it like to know how many times a day the sentiment changes? This is the beginning of making money. Being on the right side of the market because you know the right side of the market is very important. One month of focussing on one important thing is all it takes to learn to make money. You have to log. You have to annotate signals on charts. at this point if a person posts a chart with no annotations of his signals, he is deciding to not learn effectively. That is everyone's decisions. If a person has a question about a signal, then post the chart and the sginal in question by using snagit. This is a thread about SPM. Why not start posting the daily logs for SPM trades and the annoations of th SPM signals on a SPM chart with the SPM indicators and signals marked? The STOCH 5, 2, 3 and its signa the 50% crossing was only an example of a single simple signal way to begin. For me, I do not do simple. I do money making to extract every nickel that is offerd by the markets. I do not game or bet; I extract all of the time every day. If you are learning to trade, put forth the maximum work everyday to learn as much as you can. This is the SPM thread where SPM is being done. Make the thread start to work for seeing what SPM does.
Jack Hershey, That was an excellent post and I understand it and appreciate it. Thank You!!! Your correct in: I do have "bias". I am trying very hard to trade with no bias and a neutral mind. (this is very important). Also in my defense: I have posted my entry points on my charts. If you go back through the last 10-15 pages, I have posted my charts and have been very open with everyone. When I first traded Trader28 system (SPM) I lost money. In analyzing why I was losing money I came to the conclusion that the Macd 12-26-9 was a wrong setting for the YM 2 minute chart. So...How to fix it...Enter Jack Hershey...with his Stoch 5-2-3 indicator. Your right I really like the indicator and the trade signals. I think for the most part we are making progress in taking money out of the market in a consistent basis. Thankyou for all your help. I have no "ax" to grind I just want to make money and have a nice life. snarlyjack
Jack Hershey, I went back and reread your prior post (soak this up). Ok, Can we talk about the Stochastic indicator for a brief moment in time? Specifically you are using the fast line of the Stoch 5-2-3 as your signal line as it crosses the 50% level? Exactly, what does the slower 2nd line mean? I am assuming that when both Stoch lines are moving in the same direction (long or short) that this is the strongest move (period) in the move? And when they intertwine together, this means a consolidating movement in the market? Also... Why is a stop and reverse system ( way of trading) better than a "get in, take your profits, and get out" way of trading? Are you saying at the end of the day, you'll make more money with a "reversal system" than "getting in, getting out" strategy? Considering this is about "extracting" money from the market. Thanks in advance for your help Jack! snarlyjack
Why is the entry at 13:06 the "optimal time"? What about 10:02, 10:12 or 10:32? How would you have known in real time that they were less optimal? In all 4 cases, the 10 Min MACD was positive as well....and what about the crosses around and after 13:52? Or are you now counting only the 50% line crosses?