Hi Spyder I havent read all of your thread as it is very long, but have read all of Hershey's posts on this and other forums (took about 3 hours a day for a couple of months). I was developing a stock system VERY similar to Jacks before I found out about him. His thoughts lifted my system to the next level and helped me remove some of my limitations. Jack is clearly a gifted trader and teacher. Some think he is nuts as he communicates in a unique way - but no, the man is gifted and a legend. Thanks for this thread, and thanks Jack for all you have done for traders both newbie and experienced alike.
Thanks for sharing your observations. Feel free to contribute to the thread any insights from your understanding of Jack's methods that might left the rest of us to the next level as well. - Spydertrader
The main point was the focus on continuous compounding. That is obvious but so few people do it. People wait till they have a 'sure thing' or they fear being fully margined, or whatever. The concept of considering stocks as CAPITALIST MACHINE PARTS and replacing them whenever they get faulty, to continue continuous compounding is a brain fk - and goes so against the fundamentalist philosophy. His logic is unarguable - just takes a few weeks to 'get it' and stop feeling uncertainty.
Maybe I missed something - has someone tested this methode over a longer period - bull and bear markets and if so how much was the performance, drawdown etc. Thanks Helmut
Within the links to the background material I posted at the beginning of this thread, several individuals have posted their results using various forms of The Jack Hershey Equities Method. Specifically: DKM discusses his results within the thread on the Elitetrader.com web site started by inandlong. Don Cameron posted frequently about his method's and results in the MSN "Short Term Stock Trading" Web Site. I shared my results both at the MSN "Jack Hershey Strategies" Web Site and within the Elitetrader.com thread started by inandlong. Max Gainz, Vorzo, Jack and others discussed their trades via Paltalk Chatroom - transcripts and recordings of which can be accessed through the MSN "Jack Hershey Strategies" web site. Nwbprop, Gallas2, SRVZ and others have shared their results, in addition to my own, within this thread. The results to which the above individuals refer were actual results of actual trades - not 'back tested.' If memory serves, DKM traded during the height of the bear market and Don Cameron's results occurred during the market run up. My results have occurred over the past year. Nwbprop and Gallas2 currently trade using Jack's Methods or a version there of. Although Jack has indicated that his system remains independent of market conditions, my experience has been that the methods trigger more frequent and stronger signals in a rising market. While falling markets still produce trade signals, they are fewer in number and intensity (fewer trades, not as many 20% moves in price). Sideways (or choppy) markets fall in between the two extremes. Of course, your mileage may vary. - Spydertrader
NAVR, ENWV, NTES & LIFC all have exceeded the 25% pro-rata DU Volume by 10:00 AM. Only NTES shows price improvement over the previous day, and its price appears to be falling at present. As a result, we take no action, and continue to monitor our Watch List. - Spydertrader
By 10:30, only NTES & ENWV maintained their volume pace to exceed the 50% level of Pro-rata Dry Up Volume. At 11:00 AM, only ENWV had surpassed the 75% Pro-Rata DU Volume level. We had price improvement at each stage, and both MACD (+.0197) & The Stochastic Indicator (79.8288) held within our desired parameters. The chart looks good (See attached), but something is odd with this stock today. If you look at time and sales, you notice a significantly large number of "order entry errors." Not just one or two, but numerous errors all through the morning. For a stock that had only traded just over 30,000 shares in the morning, this high number of errors appears fishy to me. As a result, I take no action in regards to ENWV - even though our system indicates a possible long trade. This same "high number of erroneous order entry errors" occurred with another stock previously, causing us to stay out of the trade. It was a wise decision then. I believe we should see similar results with this decision. Price at the time was $16.36. Our system triggered NO additional signals this morning. - Spydertrader