This is an interesting thread. It intersects a couple posts I made in this other thread: http://www.elitetrader.com/vb/showthread.php?s=&postid=1193965#post1193965 How does everyone set their exit points? And do you ever look back if the stocks go higher? And do you ever re-enter a position shortly after exiting? Thanks.
I think what Grob is attempting to say (please correct me if I'm wrong) is that entries and exits are one in the same, and you're never doing one or the other......you're always doing both at the same moment. Once you get to this point, you'll find that you're able to capture a great majority of what the market offers you. I like to call it EVIDENCE. After all, traders are nothing more than detectives. We gather evidence from the market, and draw conclusions. Once we have a conclusion, we act. Most people don't have the patience to wait for all the evidence that they need. That said, the evidence that you gathered for your entry, should be the same evidence that you gather for your exit. Therefore, all you'll be doing is looking for entries, and once they appear, you will reverse your position.
Entries are optional. Exits aren't. They aren't one and the same and shouldn't always be treated as such. Sometimes is probably okay, but not always. The criteria for entry can be as specific as one wants. But one will need to be much nimbler on the exit. If one waits for the entry criteria to reverse in order to get out, it may not happen in time, whereas the market can be sending off all kinds of subtle hints. If exits, by their nature, come along far more often than entries, they shouldn't always be taken as a reverse signal. Just my opinion here. I'd rather get out with a profit or loss on the weakest of evidence and wait. Getting in takes quite a bit more evidence.
Wouldn't it have been easier recite this analogy that sums up your whole shpeel. "When the circus is in town, you might as well sell some peanuts, because when the circus leaves, whos going to want your peaunuts and who are you going to sell them to" I have always liked that quote.
Spot on. I also see they can be different animals during especially weak conditions, even trading an always-in-the-market system.
The illustration is a little fuzzy and I cant read the labels but I am assuming that your stretch squeeze chart is INDU over YM with a histogram below showing the difference. May I ask what software you are using to do this? This looks like an excellent way to track it and I would like to duplicate it.
Austin, I've been to your "bought here...sold there" site and my impression is your "trading" is fake/nonexistent! Prove me wrong with some acct statements/audits/daily blotters, otherwise it's all bs.
Are you suggesting we should pay a small fee collectively (or donate it to his nominated charity place) for inspecting his brokers' statements for about these few transactions on this thread? That would be a good idea.
A better view is on the plogspot hershey universe news the next to last post. the YM is above the INDU. and the lower chart is their difference or offset. The offset is determined before open by a lot of sourses. indexarb.com is the one used for this coded display which is coded for Tradestation. An alternative coding is in excel and it was originated by another PhD. Both are on ET as attachments I believe. as the computer programing and the input data for the inderarb.com changes during the day indexarb. com does not keep up with this news. It is detectable by the users of the stretch/squeeze, however. Since the roll over the off set has changed daily and will continue to do so. There are four basic reasons why the offset changes. There is an attachment on this as well, I believe. the Z quarter tarted with an offest of 92 and on friday it was 90 and dropped successively into the high 80'2 one drop at 2:00 on Friday (data base shift not accomodated by indexarb.com ) was a two pointer. Commonly you can use the setting that appears after the synch of INDU with DJ or YM. This was the common means before indexarb came into being. Just as there are three mechanical means of trading PVT there are various means of coding the offset. Traders using SCT at a basic level do not need to interject the Squ/str right off. When your profits are exceeding H-L around 10:30 to 11:00 New York time, then you need to use this level of fineness to deal with both the effects of market pace and the effects of intraday changes in sentiment. it may be that as a cadre of high velocity traders in SCT are doing prints, then there will be some interest in how to get to the 3 times H-L level of daily profit taking. You can see that the thorough and broad foundation that spyder contributued on PVT is now spawning separate threads that focus on specific aspects (rockets) of trading. when the 70 degrees of freedom on the 5 stages of SCT program get to be part of the discussion, the discussion will be stepping up to include the degree subsets that are the focussed upon as the market sentiment and pace vary through the day. Adjusting the offest is kind of part of this level of high money velocity trading.