Spydertrader's Jack Hershey Futures Trading Journal

Discussion in 'Journals' started by Spydertrader, Dec 30, 2006.

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  1. if1/2 is situational. Volume is going along as it should, and you enter on a YM signal or prorata ES signal. Suddenly, price reverses in that same bar goes through the extreme of the prior bar opposite the trade you are in. Go in the direction of price to get on the right side of the market. It is APA.

    Best Regards
    Oddi

    And yes, I have used this tool in real time before.
     
    #7101     Oct 30, 2007
  2. Regarding Pace:

    What algorhythm is used to adjust pace to market volatility?

    Thanks in advance,
    Oddi
     
    #7102     Oct 30, 2007
  3. Not sure why you didnt have price BO the red channel (on your chart) late in the day. Price went higher on increasing blk volume right? Actually, I am having a hard time understanding that red channel. Why did you choose that price bar as pt 3?

    I'm attaching my chart. We dont know beforehand that price isnt going to continue higher, so it would be great if you wouldnt mind explaining the CCC situation as opposed to the green channel I had (which ended in an FTT).

    Thanks.

     
    #7103     Oct 30, 2007
  4. Here is my ES 5m chart for today. Completely automated by tradestation code. For more info, go to the Beyond the hype of the Hershey method thread.

    RoughTrader
     
    #7104     Oct 30, 2007
  5. For kicks, this is the 15m. This is all still a work in progress, particularly for annotations.

    RoughTrader
     
    #7105     Oct 30, 2007
  6. I followed your above journal very closely. Very interesting work, obviously you have worked very hard to achieve such results. Are you going to share the tradestation code with us?:D
     
    #7106     Oct 30, 2007
  7. Tums

    Tums

    Very impressive. Congratulations on your progress!
     
    #7107     Oct 30, 2007
  8. Price did BO of the red down channel at 15:10 eastern Time. I simply didn't 'clean up' the channel to end it at the BO. The burnt red (brown) down channel occurred at a Point Three caused by the end of a 'tape' (not drawn in). Once Price breaks the RTL of an 'up' tape, it usually means something. :) More importantly to your question is, "Why didn't I bother 'cleaning up' the red channel?" The answer is: Because when the market went into CCC mode, I awaited the BO of the lateral formed by CCC and no longer concerned myself over previous channel context. Note the time of day. I found it highly unusual to 'see' the market head into CCC mode (even 24 hours before an FOMC Meeting). Seeing this environment, I simply waited for increasing Volume to 'know' which direction defined 'the right side of the market.'

    Nothing wrong at all with your 'view' of the market. We each take a slightly different path, but arrive at the same place. You could 'see' a channel which showed you when 'long' fell on the right side of the market, whereas I, 'viewed' things as a BO of CCC. However, both of us had trades in the same direction. In addition, You viewed the FTT telling you to head short, whereas I, noted the BO of a 'tape' indicating the very same need to reverse.

    Again, how you 'see' the market holds far more importance to your trading success, than 'seeing' the market the same way I (or any number of other successful traders of these methods) 'see' the market. As I have shown above, one can take a different path, and still, arrive at the same place.

    Keep up the great work.

    - Spydertrader
     
    #7108     Oct 30, 2007
  9. No wonder it hasn't been working out. If I look at your chart I'd have no idea either which side of the market is the right side. In fact I have to ignore the clusters of lines to actually see something.

    I suggest you make the following improvements:

    1. Draw gaussians. I mention this first because this one is the most important. Draw you gaussians so that they incorporate both price and volume action and provide you with a context to construct your channels. The job your gaussians should do is tell you whether you're in trend or a pullback (or dom/non-dom traverse as you know it's called in the Hershey vocabulary)

    It still amazes me to see how price/volume continues to tell me whether we're in a dom or non-dom. You keep going till you have the same feeling.

    2. Draw lines from left to right.
    3. Properly draw the volatility extensions.
    4. Clean up your charts in general.
    5. Apply thickness to your lines in a more logical way. Take your channel that has point 1 on the 10:55 bar and point 3 on the 12:00 bar as an example. From the thickness of your line you'd say it was a tape but I'd say it's a pretty weighted channel don't you think?
    6. Create some more empty space on the Y-axis so that every little ripple doesn't look like an insurmountable mountain. By the way you draw your lines I suspect that this is the case.
    7. It's a matter of personal preference but I'd choose to go with a layout that's more restful on the eye. I'd go personally go insane if I had to look at your layout for six hours straight.
    8. Were you away from your computer between 14:30 and 16:00 or something? Why are the annotations missing?
    9. Get rid of the Stochastics and the Fib restracement unless they actually make you see the market.
    10. Do all of the above and your charts should look more like Spyder's

    You seem to be persistent which is a good thing but you also seem to offend people by your generally negative attitude. I personally don't understand what offends them - perhaps the case is that they're just growing a bit tired of the way your questions usually result in your questioning of the method as a whole. That I would understand.

    I hope you find my commentary helpful.

    - FerdinandAlx
     
    #7109     Oct 30, 2007
  10. Ezzy

    Ezzy

    Oddi,

    I don't think anyone ever posted an algorithm for it. As far as I know it went from Jack eyeballing it, to MAK's volatility sheet verifying his "eyeball", to "someone" running a recalc this Summer due to the increased volume/volatility.

    Don't know if that recalc was done based on Mak's sheet but that's what I assumed.

    I could only find one post with mention of it:
    http://www.elitetrader.com/vb/showthread.php?s=&postid=1583457&highlight=volatility#post1583457
    Eyeballing, 2nd post:
    http://www.elitetrader.com/vb/showt...page=6&highlight=levels volume&pagenumber=896

    Hope that helps. Regards - EZ
     
    #7110     Oct 30, 2007
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