Technical Strategy

Discussion in 'Chit Chat' started by Tums, Oct 3, 2008.

  1. Tums


    Welcome to the SCT Boot Camp.

    This is a split from the thread Why the controversy? Jack Hershey SCT system works just fine.

    The best weapon against trolls is IGNORE.

    I will clean up this thread once a week.


    <hr>For information on the Hershey trading methods, please visit these threads:

    Spydertrader's Jack Hershey Equities Journal
    Spydertrader's Jack Hershey Futures Trading Journal

  2. ehorn's comments do round out in a succinct manner how everything works out.

    Getting to any level may be done by purposeful learning through experience.

    Obviously, many people understand that automating an algorithm is easy to do and there are many approaches for getting from A to B.

    I became automated personally before PC's.

    Since there are so many ways, I will mention a few.

    Going from PVT to SR to SCT is the critical path, I believe.

    IF you are a college student and new to making money, taking a month of full time boot camp in the summer is the way to expert starting with SCT.

    What about others? In this thread I have detractors on ignore and when I check "hershey" on a search it is roughly filled with ignored detractors. The detractors are rather severe examples of people who "do not get it". Let them be a warning to you the reader about how things can turn out for you.

    Several people go for shortcuts and others shun learning to make money in this algorithm.

    It is not possible to learn PVT, SCT or SR if the person is locked into CW. This is not bad or good but just reality. CW encompasses beliefs which are not helpful for those learning any algorithm that is outside of the algorithm. This is well proven and the basis of why learning is not possible is simply that those wedded to the CW have minds that are differentiated (wired) according to the beliefs that follow from learning decisions.

    OODA is a routine of CW and anyone can see that MADA is incompatible with OODA. Again this is not bad or good; it is just the way life turns out.

    Learning SCT, took short cuts just as greaterreturns did. Many poepl snip out pieces and put them to work and they make over the ATR each day.

    euclid and daniel33, posters in this thread, are not hostile and they have concluded that doing the owrk is not for them. That is as it should be for them. They do follow the CW and, therefore, find the algorithm unfathonable.

    I spend time once in a while anwsering Q's about the algorithm and its applications PVT, SCT and SR. I've done that since 1960 and things work about the same up to now.

    These times are especially profitable and, therefore, a person can add contracts more frequently than normal.

    To describe the JH Methods I refer you to four parts:

    1. An algorithm and three applications: A. PVT; B. SCT; and C. SR.

    2. A partnership of the trader and the markets.

    3. A learning tree comprised of three strands: A. Skills and Knowledge; B. Effectiveness and Efficiency; and C. Application of Capital.

    4. And growth themes: A. Learning to Learn; B. How the Mind works; C. Business Plan ; and D. trading Plan.

    In CW talk the above is babble and what "learning SCT" describes derrogatorily in the OP. For me it fits quite nicely into five books.

    I will post some focussed thoughts on a trader's day and how the logging, routine, trading and debriefiong unfolds daily. It amounts to about 10 pages that are filed in a 3 ring binder as the person goes through 6 to 8 levels of learning skills and knowledge.

    I'll use two chart displays one is labelled Neox am logging chart and the other is Noex PM logging chart.

    Daily logs in a landscape format take four sheets daily. An average day is a W or an M of four channels. One page per channel is the way it goes. On each page is about 3 to 5 traverses. This includes pts 1, 2, and 3....and FTT. It includes the dominant and non dominant alternating smoothly. It includes hiking up and down the Gaussians and occasionally crossing valley streams alway on a trail.

    Logs do not just record data. data recording can be done with an ATS if that is the objective.

    What is going on is building the mind to have long term memory and that memory is differentiated. People with CW beliefs cannot do this because they made choices that deny them the opportunity to do PVT, SCT and SR as applications of the algoithm often referred to as the pool extraction algorithm.

    CW does an algorithm best described as a risk taking and a money managed trading effort where a bet is placed usually based on a prediction and the cash in the market is protected by stops, and only using a small portion of total capital.

    Pool extraction is a taking on the other hand and the taking is based on the offer. Certainty is the underlying principle and so no probability enters the picture, ever.

    This thread is in Technical analysis and as I understand it, it is not moderated for detractors. I put detractors on ignore since they are irrational in their commentary.

    This is the basic mind building principle.


    A quick reference for its basis is found in the New Yorker in the article entitled "The Itch". A better and longer source is Doidge's " The Brain That Changes Itself".

    For traders there are three connections that are important: The Mind--the Heart--the body---the mind. I hope you can see the three dashed lines.

    The brain is screwed functionally for most traders since they dwell on fear, anxiety and anger. This causes breathing to be impaired (the requirement for energy of breathing goes up from 3% to about 33%. This drain on energy means the heart is not delivering supplies to the brain properly simply because the heart is not pumping very well and the lungs are doing something very different than normal. read Stark and Stark's The Carbon Dioxode Sydrome", especially the "Bohr effect". pp151. To make a long story short, about 50% the oxygen normally supplied to the brain is getting there.

    As is sort of well known a person can adjust about everything. The breathing warm up for Tia Chi is a nice one if you want to impress yourself with how screwed up you are in the CW trading modus.
  3. During the day, four activities are conducted for anyone trading purposefully.

    Doing a routine




    All of these things are focussed on these principles:

    1. You have to be in the market to make money.

    2. You have to be on the right side of the market to make money, and

    3. Money is made in markets through the movement of price

    The routine is MADA.

    we can use the two charts to do the routine, log the day, trade, and debrief.

    Attached is the pm chart.

  4. Neoxx


    Thanks Jack.

    I've had Spyder's chart up on my screen for the past couple of hours, comparing it to my own. Really useful way of spotting mistakes and omissions. Bit like the old apprenticeship model.

    It's one thing to have a look at Spyder's old charts on the journals, but to actually have something of my own, which I've invested 6.5 hours in, to compare, the learning seems to happen so much faster.

    Looking forward to the rest of this thread.
  5. ptunic


    Hi Jack, first I want to say thank you (as well as Spydertrader and others) very much for sharing your wisdom and experience with us, your participation is a real honor.

    I didn't understand if you believe Learning SCT was on the right track, or off track. My initial thoughts were his path, of focusing on the Point 3 set ups is probably not a "short cut" per se, but a good place to start that can be used as a building block to either stay at or achieve further gains. Eg it is still compatible with building a base to add more (FTT's, etc)? I do see how a knowledge + experience of FTT's would be essential for identifying Point 1's (as they are often the same it seems) and entering at earlier, more profitable positions. However, I didn't see anything wrong in (at a beginner level) starting with channel BO's and then first identifying point 3's. Do you recommend more of a wholistic approach of "jumping in all the way" instead?

    This is really interesting stuff.. personally I've been trying to improve my diet (less alchohol :)) and more exercise and it has been very helpful to learning. I want to place more of a focus on "learning how to learn". Can I measure times that I am learning faster than others, and if so are there health/environmental/mood factors at work here. Kind of like software coding; when you are in "the zone" you can be 10 times more productive than normal, I would like to find out if it is possible to spend more time in "the zone" in terms of learning SCT.
  6. I use an expert level log. It covers the bases for doing 20 to 40 trades a day.

    Lets look at this as a college student would in boot camp. anyone doing any labs in college goes with the flow and follows a scientific methond apporach on doing a lab. Part of that is taking data. Making up a data sheet is important and often it is done by following the lab instructors directions. He wants to get you through the lab and clean the lab up, grade your efforts and fill in his lab grading book which ne may have to turn in for the archives at the end of the term.

    In trading, for any method, we want to get ramped up to some extent so that we are making money as we proceed.

    We do MADA very seriosly and add anything in that is possible as the day goes along.

    Print the first chart and use it to do what the chart says. For your benefit cover the chart with something opaque and then slip it to the right as time passes, thus revealing more of the chart.

    You enter on bar 2 as it breaks out of the top of bar 1 and on increasing volume. This is the sensory information. log it as bar 2 BO ^ Bar 1; V^B all on row one.

    You log this after you have entered the trade @ market with the correct number of contracts. For a beginner it is 1 for an advanced beginner it is 5, For others it is 10, 20 ,40 or 50 or a total entered as 50 ,50 , 50 , 50 , and 50. Log Ent L, the bar, time, number of contracts and price(s).

    So lets chat as the day passes.

    Each level of trader has things to do and he is in an emotional state of support comfort and confidence.

    Each level of trader works with the sequences he knows and uses. Like a lab experiment that makes up the content of the log.

    I'll deal with a person who is in boot camp as a college student. He gets a log handed to him before bar 1 and a four colored ball point pen and a sheet of masonite with a sweeps chart pasted on it; the Chart is 8 /12 inches wide and two feet long. It is in nine colors.

    The log has a volume column then a price column a MODE column, a wide space for analysis, a D column and a few columns for trading stuff. All in landscape.

    For a beginner he is going to do a trade or two in the AM. He is busting his ass to get the P,V working and trading the long diagonal of a channel. He knows the P, V relationship...but he can't remember it.

    The end of his trade will be the FTT of the channel. He is learning the sequences that lead to the FTT and that is where he concentrates his "remarks" in the wide space in the log.

    He knows the log is four pages long. He knows the pages have three traverses as a minimum. The boot camp is structured because he is a student and he is in the camp because people who do the camp get to be millionaires.

    It tkaes 15 minutes to finish bar 3 after wraching bar 1 and entering on bar 2 and sitting through bar 3.

    So as bar 3 comes to a close on volume the same entry V^B and in price we have "lg bl ". In MODE a C for Continue is inserted. Remarks say "taping going fine".

    For comparison, go to a CW thread. Fun on the sidelines.
  7. Try to make the most of this weekend.

    what I would like to do is have everyone realx and take a trip across two charts.

    Along the way I will do a few things.

    This is a 6 1/2 hour boot camp lab followed by a debriefing, punching up ten sheets of prints and putting them in a three ring binder.

    Then we sleep and we wake up and consider the mind and learning and making the most of the time we have.
  9. Let your opaque cover sheet slide to the right further and further.

    As you see, the trading platform steps in and aids you in providing a lot of housekeeping aids.

    As shown in the mind operation template, there is the memory stepping forth all the time to provide you with "inference" that associates with your sensory input.

    In the past I have put up charts that show how purposeful mind building is different than experimentation.

    For a beginner to go from bar 3 to bar 9 is a challenge that takes 30 minutes of the market unfolding. This is what happens on day one of boot camp Later in boot camp the whole world has changed.

    A beginner is looking for the FTT of a channel.

    he does not usually recognize that it is going to take a while for the FTT to show up. He may not be sophisticated enough to be Focussed on building the channel and concurrently recognizing that if he is still building a channel, then there is no chance a channel FTT is possible at all.

    Look at almost all of the trades in the PA threads. Look especially at their duration and look at anek's admonitions on the long and short descriptions on pages 3 and 4. you see "sidelining" as the primary modus of PA trading.

    At point 3 of the channel (bar 9), the beginner is about 40 minutes into the trade and 2/3 of the way down page one of his log.

    He is completing a lab drill under the instructor's supervision.

    You can see that this is not a possibility for most people learning as beginners. The objective is to repeat MADA over and over and all the while enter a C for continue in the MODE column of the simple log.

    A simple log is how to begin. doing MADA requires doing tapes, traverses and channels. You see that internals of traverses are there a lot of the time.

    We take three principles and use critical thinking to build the logic of the mind.

    Dinner time in AZ. We will continue.
  10. Here is an annotated chartof the irst three bars.

    I am connecting the annotating, and the log whose main feature is the MODE column and the remarks column to the right of the MODE column.

    #10     Oct 4, 2008