the drill is to trade reversals only for two weeks. the entry is at the beginning of the reversal and the exit is at the beginning of the next retrace. This is called "trading the long diagonal" of the parallelogram from the beginning but only up to a certain point in the parallelogram. The formation terminology is that used in CW. It can be looked up using the terms reversal and retrace. Before a person begins such a mentored trading episode he has to look up and understande the terms. His somewhat further work demands that he figure out how to "see" the beginnings of each. Then he has to figure out howw to "differentiate" one from another. Then he has to follow instructions to use each one in the manner dictated by the mentor. Lets say this is a prop trading situation and that he will cusomarilt rack up the ATR or a multiple by 11:00 am NY time every day. By Noon he will double his profits, etc...etc... So its CW wikipedia time...... If the definitions get posted, then we go to work doing the next steps to clarify all the prep to begin to trade with 1 contract, the minimum amount of money to be used. Profit segments will be applied to add contracts at the rate of 1 contract per 30 ES points. Charts and prints and all that stuff can be added if necessary so a historical record is available. This effort is to unscramble a person with 5,000 hours of learning repeated failure.
Obviously we get several dividends in this reponse to the sincer request for help. Backtesting is one of them. By having a team of competent backtesters on the job, the OP gets to learn about how well he has done backtesting. we will use two formations. Lo came up with 10 to test and fucked it up royally. the backtesting of two formations Lo neglected will shed light on Lo's selection process and a compare and contrast can be deployed. there will be NO noise reduction bullshit in the backtesting since we do not want to throw out the baby with the bathwater as Lo so conveniently did. Let get the two definitions down so we can backtest them on the ES. as we do the mentored training here it will comprise a forward test that will verify the corrolation of the back testing. To duplicate the L parallel sampling will not be possible. but another possibility exists that can be used to strenghten the forard testing. Taht is we will backtest the YM on the two minute chart to achieve two things: corrlation and leading lagging relationships. Another dividend will be to put to rest the quality of Lo's work with respect to patterns by upping the level of work here by some stat sig measurable. I have post op med apt and testing to be done for the rest of the day.
not cool posting someone's personal business like that, no-one cares about your cheesy findings, you are a loser that finds joy in sniffing other peoples dirty laundry
I make a request of you similar to that I made of another "Jack-basher" recently: Please direct us to any evidence you have of Jack encouraging or coercing anyone to put up money to purchase a service, a course/seminar, a trading room subscription, or an automated trading system from him. Once you provide us with evidence of this, then please provide further evidence that the purchaser was dissatisfied and unable to terminate their subscription, or receive a refund for the service/system they purchased. I see that Jack has posted prolific information on this site at no charge to anyone. Can you illustrate how Jack's trading strategies coupled with proper risk management would result in net negative returns? I mean, they must have resulted in negative net returns for you personally, otherwise why so harsh toward him?
blox87, Some of this has been said (either here or many other places in ET) and some you may know so you may be able to skip a few but here is a game plan that I would tell a friend of mine. 1. Read the following books a. Trading in the zone - Douglas b. Art of War - Sun Tsu c. New Market Timing Techniques: Innovative Studies in Market Rhythm & Price Exhaustion by Demark d. the books by Ari Kiev e. Audio book, the new psycho cybernetics by Kennedy f. Turtle Trading by Covel That lays the foundation and you should find a method that fits your personality. You run a business so you have the ability to trade or at least the odds are vastly more in your favor than the average person trying to make a go of it. Not unlike the average person who is trying any business most do not make it. Once you have proven yourself in one the odds are much better you can do it again in another. I would say that futures do hold a big advantage to stocks if you day/swing trading. They are taxed at 60/40 in terms of long/short term capital gains. I think that is were the advantage for many ends though. I trade both futures and stocks (my best trade this month was the bond futs) but I think stocks will offer many more chances to find your setups simply due to the number of stocks out there. If futures is what you want to do then start there. There is no rule that says you cant change later. You need an edge and you have to find one that you can backtest. don't automate your backtesting. manually backtest the trades one by one. You should plan on looking for at least 100 trades that fit what you want (not just a 100 in total but 100 of what you want in a setup). After finding 100 trades and recording the results and feeling like you found an edge (not as hard as it seems as the markets unlike what so many college teachers that can't beat the S&P think and say are not that efficient and fear and greed still rule the day) Write down your rules of entry and exit. These rules include everything from closing it out at a profit to closing out at a loss and why. You ONLY trade by your set of rules and your rules include everything. If your power goes out in your house you have a rule to deal with it. If the price moves against you, moves your way, if the item is halted, if a 747 loses an engine and it lands on your dog house outside you have a rule for it. (basically this is done with a rule that says if you have to leave the computer you do X). You can have no surprises. None, none, none. if the item gets halted and opens up your way or against you what do you do??? no thinking while in the trade because you did the thinking before you entered the trade. Your next step after finding your setup (as in ONE setup) is to practice it SIM trading. If you can not sim trade because "its too boring" or "doesn't feel real", "can't hold my attention" then your not here to make money your here for the rush of the trade and your in a world of trouble. Pilots use Sims, Astronauts use sims, Submarine sailors use use (I know I was one) and the reason is clear. After you sim traded and your making money and doing the same trade over and over and over until your able to do it by feeling the heat differences in red and green bars on the LCD monitor your ready to move to real money. (hint, it will take a lot longer than you think and you will feel ready long before you should trade). you need to be able to make 20 trades without violating any of your rules and not have anything come up that you didn't have a rule for. If you do then start back at one. Now you have your confidence. No problem putting on that first trade and keep it small. one lot / contract until you can make 10 trades without a mistake (not a loss as a loss is not a mistake if you followed your rules but without a mistake in your rules). After that go another 10 with one size larger and rinse and repeat. By now you know this one setup and trade like you know your own face. Also if you followed this simple path your also making money and should give a little to some Vet organization as it makes a great tax deduction. If your not happy with your one setup because you want to make more money (to give to the vets) then make sure the next setup is similar in methods as your first. What you don't want to do is start blending trades in the middle of the action and totally mess it up. If you can automate it so your emotions stay out of it all the more better. This brings us to the next important step. Who to use for a broker. I would suggest Tradestation if your doing futures as you can automate the process seamlessly with them and or interactive brokers with Ninja trader for the automation part. I have no doubts that there are better brokers out there but I can only say I what I use and they are as good as any to start out with. All in all the best to start out with is probably Tradestation. good support and the prices are close to any you will find and cheaper than most. Once you get rolling join a chat room with traders and listen to what they are trading, why and the results. this will increase your learning speed greatly. I am in a chat and you can join us when you reach that point or there are many others that are as good. Like any business, plan on giving it at least a year and if you think of it like opening a casino (not a player but an operator) I think you will be miles ahead of the game. I probably forgot a few things but this will give you some to think about. Best of luck Robert
I thank you all for your insight. Jack Hershey, I've studied your method and tried to use it a while back only to find my commissions going through the roof lol ...Obviously I haven't spent the time required to "master" your method. One thing that I would like to take away from your teachings is the price to volume relationship. I notice price tends to reverse at volume spikes but not every time. What determines whether price will reverse at these peaks or continue in the same direction (with the next volume bar being smaller than the spike?On the ES volume has been light on the uptrend in the past couple weeks so according to your teachings there should be a reversal coming soon , how can you be sure? Can you elaborate more on the price to volume relationship . Not to make you or I look foolish , but could you explain it in a way that an 8th grader would understand. Everyone else that says Jack is full of shit, just let me ask the question and leave it at that. you don't need to worn me that he lives at an internet cafe in India and owes the IRS a million dollars . I cleared my screens and started over. Price action is what I will be focusing on . I was more constant as an ultra newbie 2 years ago when I just looked at price than I have been recently. Caught some nice moves short in the euro and pound the past couple days using price action. I'm 4 for 4 woopti doo da lol (sarcasm) . Someone told me I should make a few sets of 12-15 constantly profitable trades before I start using more than 1 contract . I think that was good advice. I can do it , I can do it, I can do it. My subconscious should be getting sick of me repeating shit all day by now. lol
Very valuable information. I thank you for taking the time to write all of this. I'm sure this thread will answer questions for a lot more people than just myself. Best wishes
I didn't know Jack was a ladies man ... you're either a stalker or a bitter ex-wife (or "partner", not that there's anything wrong with that), or Jack simply just quit returning your calls, either way you are spending way too much time on this Jackbashing, something doesn't smell right here ... who do you think you're kidding with your "public service announcement"? all your posts are about Jack ... why don't you come out with the real story of why you're so passionate about Jack and his life?