Spydertrader's Jack Hershey Equities Journal

Discussion in 'Journals' started by Spydertrader, Sep 25, 2004.

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  1. svrz

    svrz

    Hi Makosqu

    You bring up some interesting points.

    1) I briefly used TC2000 in 1999 with these set of equations. It did not result in anything meaningful for me.

    2) Eliiot Wave: IMHO, this technique is way too error prone. I have spoken to one traders who uses Fib levels exclusively and does very well. She also uses Gatley patterns quite a bit.

    3) The Usenet post that you referenced, makes some interesting points. JH once mentioned that you can use linear regression as a 'pin wheel' to easily buy and sell any stock. The Usenet post mentioned slope of the MACD and its signal as reliable buy and sell sginals. Well, one way to obtain the slope of a curve is to use LR. Hmmm. :)

    Take care for now.
     
    #251     Oct 23, 2004
  2. g33m4k

    g33m4k


    Thanks SVRZ,

    I thought about Elliott Waves based on Jack's channels which fits in rather nicely into the concept since the diagonals across the parellograms (channels) reveal interesting things when viewed as sides of an Elliott Wave... I'll see where it all leads to if anything.

    As far as LR, I was actually able to use LR with the 1 bar change in P against 1 bar change in V and found that the relation ot be remarkably linear (phew..., this is a significant step). I am an intuition person and thus my investigations are as such. You can check for yourself and it holds for any fractal level. I chose an EOD fractal. I took each BAR and generated three trends using OHLC. Thus from each EOD bar, there are a few orientations that the trends can occur, I reckon that the fractal bar's trend is either

    1) i-{O->H}; ii-{H->L}; iii-{L->C}
    OR
    2) i-{O->L}; ii-{L->H}; iii-{H->C}

    Anywho, from this and a few other additional technical intuition Vol assumptions, I created a scatterplot to eyeball linearity (statistical significance). I've attached it below for techies who may be interested in noting that the regression is both apparent and in fact linear (regressions need not be linear, being linear greatly simplifies things)... Each scatter point is taken as an independent datapoint (meaning we can nearly generate a stocks series given 1 point, and its signed net vol). There's a wealth of information that can be furthur extrapolated, but I will refrain from posting until I can boil it down to something meaningful and simple.

    Kind Regards,
    G33M4K
     
    #252     Oct 23, 2004
  3. gallas2

    gallas2

    R U trading real money? I ask because you say "now anticipating taking the plunge".

    Keep size very small if you are starting (half as small as you think is too small). There will be lots of trains leaving stations for years to come. You need lightening fast entry (years of video games finally paying off...lol) and exits. U will find trade should work almost immediately once FRV is hit. If not get out. I am risk averse -- rather miss 5 good trades than get cratered once.

    Results will be chunky. Best advice is to not trade unless everything lines up. Do nothing and keep your emotional account in tact when set-ups aren't easy to find.

    I started trading this way in '99 and thought I'd missed the boat by Sept. when I started using real money (after 3 months of reading and watching). Paid for an SUV by March '00 and sat on my hands for a long time after that watching friends get smoked. Saw a guy take 450k to 7 mill and blow up sitting 20 feet away from me. This year I've seen a guy go from 600k to 270 back to 400 in the past 6 months.

    My makeup is not suited to this type of equity swing. I can't handle the drawdowns emotionally. (I'm also Irish and fairly close to the penny). I also suggest reading a lot about psychological edges (Trading in the Zone - Douglass) and Taleb's "Fooled by Randomness").

    WITTS is that you have to find the approach that fits you. I have two free home-runs right now that truly allow me to take small losses very easily (see attached).
     
    #253     Oct 24, 2004
  4. g33m4k

    g33m4k

    Absolutely real money (account is set up with real play money that I can easily replace/fund from my day job should all be lost). I've been pulling the simulation trigger on the trading platform regularly so hopefully the gut check will be less painful.


    Couldn't agree more. Here in NYC, subway conductors are always saying "There's another train right behind this one"... I've tacked this phrase next to my desktop for psychological reasons.

    Thanks for the chart. Looks great and shows the items we're particularly interested in clearly. I appreciate it and good trading...

    Regards,
    G33M4K
     
    #254     Oct 24, 2004
  5. Sevens Ones Zeros
    WOOF - PETD - CCBI
    SRDX - PENN - JBHT
    GTRC - DDR - NAVR
    CNCT - ARO - CREE
    CTXS - NIHD - PPDI
    EWBC - PAAS - TS
    CTSH - URBN - HTLD
    SHFL - WSM - CLE
    TKC - CYTC - RIO
    DECK - PMTI - FFIV

    Hot List:

    PMTI
    NAVR
    PETD

    Watch List:


    TASR - DU Cycle
    HRT - DU Cycle - DU5 - DU10 - DU20
    ESMC - DU Cycle - DU5 - DU10
    NVEC - DU Cycle - DU5 - DU10
    IDSA - DU Cycle - DU5 - DU10 - DU20
    UBET - DU Cycle - DU5
    CALM - DU Cycle - DU5 - DU10
    LWAY - DU Cycle - DU5 - DU10 - DU20
    ANIK - DU Cycle - DU5 - DU10
    SWIR - DU Cycle - DU5
    HANS - DU Cycle - DU5 - DU10 - DU20
    EVCI - DU Cycle - DU5 - DU10 - DU20
    PETD - DU Cycle
    LSCP - DU Cycle

    (NVEC, IDSA & LWAY have float outide normal parameters)

    Wealth Lab Equations:

    ESMC
    HANS
    HRT
    IDSA
    TRMM
    UBET
    VSEC

    Score Above:

    ESMC - 0
    HANS - 0
    HRT - 5
    IDSA - 0
    TRMM - 2
    UBET - 0
    VSEC - 0
     
    #255     Oct 25, 2004
  6. svrz

    svrz

    Hello All

    I created a flowchart of Hershey Stock selection criteria which is based on Spydrtrader's excellent description.

    I thought this may help us all in understanding the process better.

    The flowchart is in Visio 2003 format. If you don't have Visio, you can download the Visio 2003 Viewer from MS:

    http://www.microsoft.com/downloads/...5C-FED1-46CF-BD53-DA23635AB2DF&displaylang=en

    After installation, you can view this file with your IE.

    Any comments or criticism is welcome. :)

    Take care and I hope this chart is useful.
     
    #256     Oct 25, 2004
  7. Even though IDSA falls OUTSIDE the FLOAT parameters discussed by Jack Hershey, it remains a tenured stock. As such, Jack has been known to break the rules with his tenured stocks. IDSA triggered a buy signal almost immediately after the open this morning:

    10/25/04 09:33:52 11.00 11.00 11.00 1800

    MACD: .0025
    Stoch: 75.0019

    Actual Volume exceeded calculated Dry Up Volume around 9:34 AM. Since we had price improvement, and our indicators fell within correct parameters, we enter a long position on IDSA. Using the 'money management' guidelines previously discussed in this thread, we determine 1818 shares as a maximum (rounding down to 1800 to avoid buying "odd Lots.")

    Target Price: $12.10
    Stop Loss: $10.45

    IDSA reached our target price a little after 2:00 PM resulting in a sale at $12.13.

    10/25/04 14:10:23 12.13 12.07 12.32 1800

    According to the chart (see attached), it would appear that we have room to run in regards to continued price improvement on IDSA. However, since we reached our target price, we won't allow greed to affect our trading.

    In regards to UBET, The email sent by the quotetracker program failed to reach my mobile phone while on holiday. Evidently, Sprint experienced system problems during the week unknown to me until after my return. As a result, I still own the shares of UBET. However, for scoring purposes of this journal, I plan to document the trade as a loss. Had I received the email, I would have sold. Even if the ultimate result of the UBET trade results in a gain for my account, scoring the trade as such would skew the results.

    I appreciate the contributions made to the journal in my absence, and I believe many found the discussions to be helpful. As always, I continue to encourage participation.

    Thanks again for your interest.

    - Spydertrader
     
    #257     Oct 25, 2004
  8. Sevens - Ones - Zeros
    IAIA - HDWR - PPDI
    MTXX - PETD - JUPM
    IDSA - PMTI - PAAS
    CNCT - URBN - SHFL
    KNGT - UPL - EAGL
    EWBC - CMTL - CRDN
    CNC - CREE - CYTC
    VRNT - DPTR - TASR
    CTSH - RIO - BR
    TKC - PENN - YHOO

    Hotlist

    TASR
    IDSA
    PMTI
    JUPM
    PETD

    Watchlist

    HRT - DU Cycle - DU5
    ESMC - DU Cycle - DU5
    NVEC - DU Cycle - DU5 - DU10
    UBET - DU Cycle - DU5 - DU10
    IDSY - DU Cycle - DU5 - DU10
    CALM - DU Cycle - DU5 - DU10
    LWAY - DU Cycle - DU5 - DU10 - DU20
    ANIK - DU Cycle - DU5 - DU10 - DU20
    SWIR - DU Cycle - DU5
    TRMM - DU Cycle - DU5
    HANS - DU Cycle - DU5 - DU10 - DU20
    EVCI - DU Cycle - DU5 - DU10 - DU20
    SMTS - DU Cycle - DU5
    LSCP - DU Cycle

    (HRT, NVEC & LWAY have float outside normal parameters)

    Wealth Lab Equations

    ESMC
    HANS
    HRT
    TRMM
    VSEC

    Score for Above

    ESMC - 3
    HANS - 7
    HRT - 7
    TRMM - 1
    VSEC - 0
     
    #258     Oct 25, 2004
  9. Actual volume failed to exceed calculated dry up volume prior to our 11:00 AM time frame for each of our Watch List stocks. As a result, we take no trades today. UBET moved slightly up in price today, and we continue to hold these shares. Keep a watchful eye on ESMC (See attached chart) over the next few days. A tenured stock, ESMC tends to follow the DU Volume - FRV paradigm pretty closely.

    - Spydertrader
     
    #259     Oct 26, 2004
  10. svrz

    svrz

    Thanks for the outstanding work, Spydrtrader. I look forward to reading your posts and analzying the list of stocks that you post, every night.
     
    #260     Oct 26, 2004
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