To those experiencing difficulties in staying at the forest / tree trading level, and to those that feel that they'd benefit from improving their exits, I suggest to look into determining the current market trading fractal using Jack Hershey's "tampa tape fix". I apologize if this seams a little outside Spydertrader's approach to SCT, but I found it useful and I hope it might help others as well. Those interested might want to review "The Stochastic Indicator" thread, and the "Channels for Building Wealth" document. Further, I'll post a few excerpts from that thread:
It was about time for our periodic âHow come weâre not making money yet?â discussion. These things seem to come in waves for some reason. Oh well. Some good points have been raised, but my own experience is this. I am light years ahead of where I stated in January. I canât even imagine looking at a chart now without channels and gaussians. I do use my newly acquired charting abilities (on a slower fractal) for the placement of non-directional option trades and have no complaints. But I am not trading futures yet. I am not even simming regularly. While I have proved to myself that I can recognize an FTT and take the trade for a couple of points here and there pretty much any day of the week (itâs more like scalping), that is not my goal. My goal is to learn the JHM of SCT fully and proficiently. However, to do that takes a thorough rewiring of the brain and one cannot do that if they are focused on a P&L. I have noticed that since I stopped simming, I am more focused (and more relaxed as well). I challenge anyone still in the learning stage to say that when they are simming, they are not thinking about their P&L some of the time and that will affect when you enter/exit a trade. Your P&L should be irrelevant to when entering/exiting a trade. When I do start simming again, I hope to be at a point where I literally donât even look at my P&L till the end of the day. When I can do that, I know I will have trained my brain. As discussed a couple weeks back, one needs to be prepared to make the time commitment to learn this stuff. There is a very good reason why Spyderâs syllabus is one year long! It may not be apparent for a few months, but as time grinds on, it becomes evident. Iâm holding out for the brass ring!
Nobody ever Exits a trade because he has "made" enough money. No amount money is ever enough. People exits a trade because he does not know what is coming next. He is uncertain. He was doing his MADA... he got through the M and the A, but could not arrive at a D, therefore the obvious A to him is EXIT. or maybe he wasn't doing his MADA... I feel sad. Life is so beautiful, and he has to cut it short.
Exactly the point I was so clumsily trying to make in my earlier posts. I focused on "exits" rather than "reverses" and by extension learning how to trade the SCT way. I do use a simulator, but I do not look at my P&L during or after the day. It doesn't matter to me. I don't care at this point in time whether I make a good trade or not. The purpose of the simulator (to me) is to better learn how to apply what I have learned. I didn't raise the question about exits to maximize my P&L but rather to develop a dialogue with others of how they were employing SCT or any close approximation to it. In my clumsy way anyway
Bearbelly Most people on this thread are not trading. They are only trying to learn how to read the market. Learning how to read the market. I have come a long way, but the road ahead, is a very long one. Thanks to all, who work hard, the journal progresses steadily. It is an ongoing process that continually strengthens, as the experience of all in learning, is brought to the journal. To reinforce what is being taught, is understood, and that this is a year for learning. bundlemaker Now, there is an element of trust involved. You would need to trust that what Spyder is teaching actually works and that he's not leading us down some black hole. I have to believe that Spydertraders intentions are good. The patience he has with everyone, to make sure we fully understand what is presented, is not the intentions of someone who does not care about everyone, and their ability to move forward. Every individual question is answered, and the time is taken until there is a grasp of what is presented . This is someone who cares. dkm, your posts are well thought out, thanks.
I can't see clear signal 81 times but I know one day I will. I do see some clear repeated signals every day which I continue to train myself to recognize them faster still. My threshold is having a repeatable and tradable signal sequence, I think I got it. Then again maybe this threshold is too low for somebody else standard but it's good enough for me. I have no guidance to offer except my own progress. I don't feel any temptation to skip ahead because this will be lifelong pursuit.
The Tic Chart As we move into the August portion of the syllabus, we begin our study of our final tool for these methods - the tic chart. As the DOM before it, and the STR / SQU before that, The Tic Chart represents an Intra-bar tool (the scalpel and scissors) far removed from the sledgehammer and the pick axe learned in the beginning months of this journal. The Tic chart provides the trader the ability to see the signal for change almost as it occurs in real time. In other words, the trader can now 'see' change and act upon it - almost to the very tic at which the signal for change occurred. In order to learn to 'see' this change take place, one must configure their Tic Charts accordingly. The best way to 'see' the Tic changes is to use a "One-Tic Range" chart. In addition, you want to set the color changes of these 'one tic range bars' so a tic up creates a black Price and Volume bar and a tic down creates a red Price and Volume bar. Be sure to set the 'no change' value to a neutral color (in an effort to remove any bias from the chart itself). In such a fashion, you'll be able to see both the Price changes and the Volume changes which occur at the tic level. Quotetracker works quite well for this task. Unfortunately, the folks over at Qcharts haven't been nearly as helpful (I'm sure Ezzy can elaborate here). So, for those of us still using Qcharts, The Medved's (Quotetracker) have an excellent platform for viewing the 'one tic range' charts - including Volume. Now, a bit of background ... As pointed out in a previous post, we can use tic charts in combination with other tools as a means to create comfort and confidence in the signals we receive. A trader can use STR / SQU, DOM and Tic Charts - in combination - to learn to 'see' the sequences which repeat over and over again in the market each day. In this manner, these tools become more of a training tool - used by the trader to develop the mental pathways needed to 'see' what must come next. In addition, a trader can use the combination of tools to 'confirm' a signal after entering into a position. Lastly, a trader can use different parts of the tic charts to look for signals of continuation and change. "O.K. Great, but what are we supposed to look for and how do we use the tic chart?" One need look no further than the hand drawn chart posted above to locate the classic signal for change as represented by the Price portion of the tic chart. However, Volume also plays an important role in the tic chart. Remember Gaussians? Well, they too exist at the tic level, and one can 'see' the Gaussian shifts occur within the ES five minute bar, simply by monitoring the Volume pane of a 'one tic range' chart. In other words, When a shift in market sentiment occurs, this sentiment shift is visible on the tic chart itself. Pretty cool, eh? Harmonics, Gaussians, Channels all exist within the 'one tic range' chart. Now, I'm not trying to suggest one attempt to draw trendlines on a fast moving chart like this, but if one has developed the ability to mentally 'superimpose' a trend channel onto the tic chart, you'll understand exactly what I am talking about. Here is how you need to go about learning to use this tool. First, spend a few days, maybe a week or two, simply monitoring the tic chart throughout the day. Get to know how the ebb and flow of the market materializes at the tic level. Make note of how the Gaussian formation develop and change when sentiment changes. Note how price enters and leaves various market formations (hitch, dip, stall, HVS etc.). Pay special attention to the sequences of events which occur with the STR / SQU, DOM and Tic chart. After spending some time learning how the tool functions, then place it into the list of tools to use throughout the trading day. As with other Intra-bar tools, one can receive multiple signals within the same five minute ES bar (during periods of extreme volume). Keep in mind what signals correspond to your individual resolution level. Begin with the ES, and sweep through the various data sets in an effort to locate the signals for continuation and change which exist on all monitoring tools. While I am sure many will have questions with respect to what the tic charts tell them, by monitoring both the ES and the YM tic charts for a while, looking for the information pointed out above, I'm confident most will find the charts an invaluable addition to their trading toolbox. As we move forward in the month, I plan to post some examples of these points of change. Good Trading to you all. - Spydertrader