Spydertrader's Jack Hershey Equities Journal

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

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  1. svrz

    svrz

    Okay, this is what I had come up with. The reason that I suggest that we do this, is to easily incorporate various indicators to our script. For example, we can make put this into the Indicator folder and then have a simple script that calls on this function to get the DUs, plot a MACD and stoch. This can be done with just a few lines. For you programming folks, this can be thought of as being OOish. :)

    function getDuAndScore() : TList;
    begin
    var BAR, F, X, DAYS, CYCLELENGTH, LASTLOWBAR, COUNT, DAYS1,DAYS2,DAYS3,
    DAYS4,DAYS5, DIVIDEBY, mo1,mo2,mo3,mo4,mo5,thePrice,theVolume,AD: integer;
    var AVG, VOL, N, DU, PV, BASE1,BASE2,BASE3,BASE4,BASE5,PEAK1,PEAK2,
    PEAK3,PEAK4,PEAK5,GAIN1,GAIN2,GAIN3,GAIN4,GAIN5,AVERAGEGAIN,DU1,
    DU2,DU3,DU4,DU5,AVERAGEDU : float;
    var RETRACE, theMACD: integer;

    if (not IsDaily) then
    SetScaleDaily;

    mo1:=BARCOUNT() -1 ;
    mo2:=BARCOUNT() -21 ;
    mo3:=BARCOUNT() -41 ;
    mo4:=BARCOUNT() -61 ;
    mo5:=BARCOUNT() -81 ;

    RETRACE := 1;
    F:=40;COUNT:=0;LASTLOWBAR :=1000000;
    FOR BAR:= BARCOUNT() -1 DOWNTO BARCOUNT()-127 do
    BEGIN
    IF LASTLOWBAR < BAR THEN BAR:= LASTLOWBAR ;

    //CHECK CYCLE AT SIX DAYS
    X:= PEAKBAR(BAR, #HIGH, RETRACE) ;
    N:= PEAK(BAR, #HIGH, RETRACE) - LOWEST(X-1, #LOW, 5) ;

    IF N/LOWEST(X-1, #LOW, 5) >= 0.20 THEN CYCLELENGTH:= 5 ELSE
    BEGIN

    //RAISE CYCLE TO SEVEN
    X:= PEAKBAR(BAR, #HIGH, RETRACE) ;
    N:= PEAK(BAR, #HIGH, RETRACE) - LOWEST(X-1, #LOW, 6) ;
    IF N/LOWEST(X-1, #LOW, 6) >= 0.20 THEN
    CYCLELENGTH:= 6 ELSE
    BEGIN
    //RAISE CYCLE TO EIGHT
    X:= PEAKBAR(BAR, #HIGH, RETRACE) ;
    N:= PEAK(BAR, #HIGH, RETRACE) - LOWEST(X-1, #LOW, 7) ;
    IF N/LOWEST(X-1, #LOW, 7) >= 0.20 THEN
    CYCLELENGTH:= 7;
    END;

    END;

    IF N/LOWEST(X-1, #LOW, CYCLELENGTH) >= 0.20 THEN
    BEGIN
    DAYS:= PEAKBAR(BAR, #HIGH, RETRACE) - LOWESTBAR(X-1, #LOW, CYCLELENGTH)+1 ;

    IF PRICECLOSE(PEAKBAR(BAR, #HIGH, RETRACE) ) < PRICECLOSE(PEAKBAR(BAR, #HIGH, RETRACE)-1 ) THEN
    PV:= VOLUME(PEAKBAR(BAR, #HIGH, RETRACE)-1 ) ELSE PV:= VOLUME(PEAKBAR(BAR, #HIGH, RETRACE) ) ;

    F:=F+10;
    LASTLOWBAR:=LOWESTBAR(X-1, #LOW, CYCLELENGTH)-1 ;
    COUNT:= COUNT+1;

    IF COUNT=1 THEN BEGIN
    GAIN1:=N/LOWEST(X-1, #LOW, CYCLELENGTH) ;DAYS1:=DAYS;DU1:=LOWEST(mo1, #VOLUME, 20);
    END;
    IF COUNT=2 THEN BEGIN
    GAIN2:=N/LOWEST(X-1, #LOW, CYCLELENGTH) ;DAYS2:=DAYS;DU2:=LOWEST(mo2, #VOLUME, 20);
    END;
    IF COUNT=3 THEN BEGIN
    GAIN3:=N/LOWEST(X-1, #LOW, CYCLELENGTH) ;DAYS3:=DAYS;DU3:=LOWEST(mo3, #VOLUME, 20);
    END;IF COUNT=4 THEN BEGIN
    GAIN4:=N/LOWEST(X-1, #LOW, CYCLELENGTH) ;DAYS4:=DAYS;DU4:=LOWEST(mo4, #VOLUME, 20);
    END;
    IF COUNT=5 THEN BEGIN
    GAIN5:=N/LOWEST(X-1, #LOW, CYCLELENGTH) ;DAYS5:=DAYS;DU5:=LOWEST(mo5, #VOLUME, 20);

    AVERAGEGAIN:= (GAIN1+GAIN2+GAIN3+GAIN4+GAIN5)/5 ;

    IF DU1>0 THEN DIVIDEBY:=1;
    IF DU2>0 THEN DIVIDEBY:=2;
    IF DU3>0 THEN DIVIDEBY:=3;
    IF DU4>0 THEN DIVIDEBY:=4;
    IF DU5>0 THEN DIVIDEBY:=5;
    AVERAGEDU:= (DU1+DU2+DU3+DU4+DU5)/DIVIDEBY;

    END;
    IF COUNT = 5 THEN BREAK;
    END;
    END;

    IF PRICECLOSE(BARCOUNT-1) >PRICECLOSE(BARCOUNT-2)THEN thePrice:=4;
    IF VOLUME(BARCOUNT-1) >VOLUME(BARCOUNT-2)THEN theVolume:=2;

    IF MACDEx( BARCOUNT-1, #CLOSE, 5, 13) > MACDEx(BARCOUNT-2, #CLOSE, 5, 13 )THEN AD:=1;



    var num : float = AVERAGEGAIN;
    var denum : float = (DAYS1+DAYS2+DAYS3+DAYS4+DAYS5)/5;

    var Rank : float = 100*(num/denum);
    var FRV : float = 3*AVERAGEDU;
    var Pk : float = 2*(3*AVERAGEDU);
    var Score : float = thePrice+theVolume+AD;

    RestorePrimarySeries;

    var lst : TList;

    lst := TList.Create;

    lst.Add(Rank);
    lst.Add(AVERAGEDU);
    lst.Add(FRV);
    lst.Add(Pk);
    lst.Add(Score);

    Result := lst;

    end;
     
    #541     Dec 9, 2004
  2. Any changes to the above from your 'getDUandScore' indicator previously developed?

    - Spydertrader
     
    #542     Dec 9, 2004
  3. Our system failed to generate any signals today - either via pro-rata Du Volume Calulations or any of the other Dry up Volume Formulae. Regarding our Dry up Stocks with G33M4K Master list score of Zero (BCSI, ESMC, HRT & VSEC), today's volume on ESMC failed to exceed previous day volume (PDV). BCSI, while exceeding PDV, did so when price showed no improvement. Both VSEC & HRT also had volume levels lower than PDV. None of the stocks reached FRV levels by EOD. As a result, we take no action in regards to trading these stocks.

    - Spydertrader
     
    #543     Dec 9, 2004
  4. starfirer

    starfirer

    I guess my IQ is just not up to par ! I have been trying to find a starting piont to understand the Jack Hershey Methods ,at the least a point to begin to have a clue. I have been to the websites recomended and I have been reading, (doing my homework) I rec'con you fellow's are way over my head! I admit my computer and market knowledge is limited. I can't even grasp the abbreviations in what I read if that is even what they are? what do these mean? ES, RR, FBP, YM ,INDU bars, ET'S, DOM, TWS This last is from a stement I just reread"I use IB's DOM on their TWS?
    Honestly Is it to late for me to learn "JH's" methods?? The only thing I think I have figured out is Volume and Price as something to do with all this. Also the stocks get a rating and put on hotlists?It should all be in my "Universe". I don't know If am even in the right Milkyway? I need some help, so bare bones basics! through me a bone here?: :confused:
     
    #544     Dec 9, 2004
  5. It appears you have attempted to learn both Jack's futures methods and his equities methods simultaneously. Since you possess a limited understanding of market terms and definitions, you have attempted to improve your knowledge in this area as well. To attempt to master three areas of knowledge at the same time represents a difficult challenge. You might find it in your best interest to choose an areas of study, and attempt to master it, before moving on to another area.

    Begin by determining if futures trading or equities trading fits your psychological profile and risk tolerance. Your limited knowledge of market terms indicates to me that you may find the concepts and terms associated with the Jack Hershey's Equities Methods easier to grasp. If you agree with this assessment, return to the beginning of this journal and review the various posts. Follow the 'step by step' instructions regarding the methods used to determine which stocks to buy. For background material and a more detailed understanding of Jack's concepts, I recommend "The Big Post: I - X" located at the URL's posted at the beginning of this thread.

    While you may find Jack's style of prose somewhat difficult to follow, when you return to this thread, the concepts will appear clearer to you. When you have difficulty with definitions, the following URL provides easier answers:

    http://www.investopedia.com/dictionary/

    Do not attempt to absorb all the available knowledge at one time. Focus on one thing until you understand the concept, and only after mastering that concept, should you move on.

    If you decide 'futures trading' best suites your needs, then you can best obtain answers from the MSN Jack Hershey web sites or the futures trading thread titled "Jack Hershey Trading" started by Nwbprop.

    I hope that helped.

    - Spydertrader
     
    #545     Dec 9, 2004
  6. Sorry I've been too busy at work to review the WL script - but anyway svrz seems to have abilities far exceeding mine on WL. Thanks all.
     
    #546     Dec 9, 2004
  7. starfirer

    starfirer

    I did not realize I was reading different area's of Jack's work. I was hoping if I just keep reading things would start to sink in, THINGS DIDN'T Equities (YES)
     
    #547     Dec 9, 2004
  8. svrz

    svrz

    Hi Spydertrader

    No, I just removed some unneeded and commented lines.

    Take care
     
    #548     Dec 9, 2004
  9. svrz

    svrz

    I posted a Visio document where I summerized Spydertrader's work into a flow chart. Here it is:

    http://www.elitetrader.com/vb/showthread.php?s=&postid=613330#post613330

    Perhaps this can get you started.

    Good luck.
     
    #549     Dec 9, 2004
  10. svrz

    svrz

    You give me far too much credit, sir. :)
     
    #550     Dec 9, 2004
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