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Posts posted by Spydertrader

  1. I believe this is the signal for continuation that I missed.


    You now have a hypothesis.


    More importantly, you have created a data set which you can apply to any like container in an effort to confirm (or invalidate) said hypothesis. All that remains is to determine whether (or not) you have assembled a sufficient data set.


    Note all possible parameters which enabled the creation of this container under discussion. At some point in the future, you will see either the exact same set of parameters create the exact same entity, or you'll see a subtle difference indicating that which the market is building has not yet completed.




    - Spydertrader

  2. Comments desired, welcomed, appreciated, and, um... needed.


    Based on your annotations, you have a non-dominant movement (Points Two to Three) of a container beginning at 15:25 PM Tuesday and ending at 10:20 AM Wednesday (All times Eastern and [close of] ES bars). This movement represents a certain fractal level. Since all markets operate on a fractal basis, the market must have created the same fractal prior to said container, as well as, another (equal sized) container afterwards - in order to complete the sequence of dominant to non-dominant and back to dominant. Within each of these fractals, the market must also create faster fractals using the same exact rule set of dominant to non-dominant and back to dominant.


    Based on your Gaussian Annotations, you have 'jumped fractals' as a result of not having the ability to 'see' that which the market has indicated as continuation, rather than, change.


    Use the non-dominant container as a template. How does it differ from the annotations you have attributed to the same level container after the non-dominant container reached completion?


    - Spydertrader

  3. What made you transition from equities to the e-minis?


    Efficiency. Once one learns to see the market signals provided by The Price / Volume Relationship in one market, one simply needs to apply those very same principles onto another - more efficient - market in an effort to earn more money per unit time. With Equities, the various trading fractals devlop over a period of days requiring a trader to hold a position overnight and taking between 4 and 8 days to complete its 'natural cycle.' The same process, in the futures markets, requires 30 minutes (or so). The application of margin requirements (on the futrues markets) also permits a trader to increase their leverage with respect to the percentage of capital applied.


    Do you trade for daily, weekly... %ROI ?


    No. I have no idea how long a specific trend may last when that specific trend begins. As it turns out, trends begin and end in the exact same fashion. As a result, one need not know how long a particular trend may last. One only need have the ability to recognize when a trend begins and ends. Instead of focusing on ROI% in an effort to gauge 'success,' I use the market's offer for the specific day traded. Since each trading day offers a different range what percentage (in terms of 'points' or 'tics') of that range (for me) provides a more accurate assesment of that day's activities, and allows for smoother comparisons across a wide variety of day 'types' (e.g. what some might terms as trend vs chop or flat vs wide range day).


    What is your trading style?


    I currently trade the Intermediate Level trends which develop on an Intra-Day (5 minute Chart). I use Price and Volume exclusively - having no other indicators on my chart. As a result, the market provides enough signals for me to make between 3 and 7 trades each trading day while remaining in cash positions overnight. I only trade between 9:30 AM and 4:00 PM (Eastern Time).


    Anything else you would consider an important insight for someone seeking to follow your steps and trade the e-minis for a living?


    Irrresepective of trading methodology chosen, everyone aspiring to earn a living from trading the markets (any market), should take the time needed to develop the knowledge, skills and experience required. No need for forging ahead recklessly exists. The markets aren't going anywhere anytime soon, and as a result, applying real capital into any market prior to developing a plan represents a foolish proposition.


    Understand the length of time such a commitment involves - right up front - and do not set arbitrary time limits for one's education.


    And one last time (just to be perfectly clear), do not apply real capital to your trading until you have a very clear understanding of every single aspect of your specific trading methodology.


    Good trading to you all.


    - Spydertrader

  4. I would like to open this topic to offer a thread of hope to all of those that find it impossible to believe that one can actually make a living trading solely the e-minis. If you have done it for over a year, it would be great if you could share your experience and how you got there.


    I might as well say it directly and right up front. Most people view the the following information as pure and utter crap. They often describe the principles by which I trade as "impossible, unnecessarily complex, ridiculous," or even, "complete bull$hit." Anyone falling into such a catagory should immediately add my username to their 'ignore list' avoiding the chance of reading anything which might conflict with their long held biases and / or belief systems.


    I exclusively trade the E-Mini S & P 500, and I have done so for nearly five years. Prior to trading the ES, I applied the very same principles of The Price Volume Relationship onto the Equities Markets. I do not post to any 'blogs.' I have no 'mentorships' for sale. I operate no 'advisory services' where one can subscibe. I only make my living by trading the ES.


    As to how I trade, I've written extensively (on this web site and on ET) on the process by which one can teach themselves how to trade. One need not read books to learn about how all markets operate. One need not seek a mentor to learn to trade. One does not even need to read my posts to learn how to learn. Anyone wishing to learn to trade profitably simply needs to have the ability to apply critical thinking onto a problem.


    Contrary to the viewpoint of the majority, Markets do not exist randomly and they do not provide a definition of 'chaos.' Markets (all markets) exist on a fractal basis and provide examples of elegant order in their construction. This order exists in any market and on any time frame.


    I have spent many years learning to see that which most claim cannot exist. Along the way, I have learned that while everyone has the ability to learn to do what I do, few have the desire and determination.


    So yes Virginia, profitiable traders (who exclusively trade the E-Mini's) do exist. The choice to view such statements as fantasy or fact remains within the mind of the individual.


    Good trading to you all.


    - Spydertrader

  5. Hi can anyone tell me are there any threads of people that still trade stocks using the jack Hershey/spydertrader method? I read all of the journals on Elite but was wondering if there was anything here?


    Whether one trades Equities, Options, Futures or The Currency Exchanges the Fractal nature of The Price / Volume Relationship remains exactly the same in Any Market; on Any Time Frame (and provided sufficient liquidity exists).


    I encourage you to learn to thoroughly (and correctly) annotate a chart, and then, apply what you have learned (from this process) unto any market of your choosing. The culling process (Equities Methods) simply allow for greater efficiency (making more money per unit time) in trading. Applying the P/V Relationship onto the Futures Markets improves on that efficiency (by increasing the money velocity).


    Good Journey to you.


    - Spydertrader

  6. I'm reviewing some postings from past journals on ET.


    A wealth of information exists within the previous discussions and past journals. However, one must take great care to understand the context surrounding the discussion illuminated within those old posts.


    Seems emphasis and perspectives have evolved to some degree. (just my opinion).


    Taking action within a five minute ES Bar (based on signals generated from a finer tool set) would appear to difer greatly (as a perspective or emphasis) than simply using Coarse Level Tools exclusively. However, in reality, the fractal on which the trader executes represents the only item which actually changes (other than the trader themself).


    would you say the FTT is still the key or would it be volume sequence or something else----or is it different for each individual?


    Which piece of the overall puzzle finally aligns the tumblers within a trader's mind differs greatly for each individual taking this journey just as everyone's individual mental filters differ greatly due to their own life experience. As such, one person may easily grasp the concept of Lateral Differentiation but find great dificulty recognizing Volume Sequences. Whereas, another individual cannot complete the Lateral Formation Drill, but has no problem with Volume Sequences. Each piece of the puzzle represents no more or no less an important thing to the person who has yet to overcome their own specific obstacle.


    However, since all trends begin, and all trends end, in the exact same fashion. One need only have the ability to recognize this specific point in time in order to profit from the information provided by the market itself. As it turns out, the market signals this specific point in time by creating an FTT.


    Knowing when the market has provided an FTT provides the trader with the signal they require to enter, exit or reverse. I'd say that's pretty important.


    Just curious as to the perspective that time and experience has created.


    I have already done, or a continue to do that which I have advised within the many pages of the current discussion. The market's ability to track sentiment over time has not changed since the invention of markets, nor will it change anytime in the foreseeable future.


    Having the ability to trade profitably represents a consequence of the fully differentiated mind.




    - Spydertrader

  7. Today's chart attached.


    If you have an automated program drawing your tapes on the chart you attached, you might want to re-think the logic used.


    I focused on marking the volume of all lats as non-dominant.


    How did that work out for you?


    What's the general consensus about acting on signals only at the close of a 5-minute bar?


    I have always provided advice which espoused the wisdom of learning to crawl, walk and run, prior to, learning to fly. However, should one choose to forgo such a conservative approach, one can act on signals from finer level tools before the actual close of an ES Five Minute Bar.


    It seems like, due to the nature of the market and the ability to trade on various fractal levels, one could find a fractal level where acting on the close of a 5-minute would be acceptable/profitable. If that is the case, I'd like to find out if that acceptable fractal level is the "traverse level"


    If a trader uses exclusively Coarse Level Tools (i.e. only an ES Five Minute Chart), then trading at the 'Traverse Level' provides the answer you seek.




    - Spydertrader

  8. For those individuals who have an interest in using the Trade Navigator ' Automated Gap Removal Tool' (and the 'Freeze Trend Line Slope' Function) please see the instructions below.


    Step One


    Phone Genesis Customer Service and indicate you wish to enable the Spyder String for the Gap removal tool.


    Step Two.


    Click the telephone icon located in the upper left corner the Trade Navigator Software.




    Step Three.


    Within the 'Update Data' Dialog Box, select the 'Download Special File' Option. If not already there, type the word 'Upgrade (without the quotes) into the box. Clcik Start.




    At this point, the Upgrade Process Begins. Once completed (and after Trade Navigator has restarted), move to the next step.


    Step Four.


    "Right Click" any chart and choose ' Edit Chart Settings.' Within the 'Chart Settings Dialog Box,' Highlight the word "price" directly under Pane 1. Next, check' 'Remove Overnight Gap' located in the bottom Right Corner of the Dialog Box.




    Click 'OK.'


    Once completed, the TN Software will automatically remove all overnight gaps enabling each day's opening print to occur exactly at the previous day's (16:15) closing price.


    Also, to use the 'Freeze Slope' Function, simply grap the end of any trend line while holding down the 'Control (CTRL) Key' on your keyboard. Doing so will allow any trader to lengthen (or shorten) any trend line without changing the slope of the trend line itself (remains exactly as annotated).




    - Spydertrader




  9. Hi Spydertrader and all who are interested in PV relationship I have the same question as treeline had.


    After reviewing treeline's questions, perhaps, they could best be addressed by the person who created the annotations.


    Besides that, I would like to know how to treat "old trendline A" after we have Accelerated "trendline B" and "trendline C".


    Unless you have never accelerated a trend line in all your years of annotating charts, you should already have the answer to this question. If you do not realize that you already know the answer to this question, what does the market do moving forward from the point in time where you feel things become confusing?


    - Spydertrader

  10. Do you consider a reversal trade on FBO after a FTT as being a wash tade or do you deem such trades as something each trader does numerous times during RTH just as a part of a routine?


    Wash trades, for the beginner (or learning trader, if you will) represent an entirely different matter, than for the experienced trader. For someone attempting to learn the language of the market, Wash Trades build confidence. Knowing one has the ability to exit (at any time) at break even removes fear and anxiety from the trading decision making process.


    For the experienced trader, a Wash Trade simply results out of market Geometry. Annotation error (should it come into play) occurs with deminished frequency as one gains experience. For example, yesterday's (03-04-2009) midday Lateral Point Three Container provides a great example of the type of 'Market Geometry' which, even if the trader executed their trades appropriately (reverse long at the container start and reverse back short at the container end), depending on one's fill (and slippage), a trader might end up with a very small profit, a breakeven trade, or even, a small loss. Please note, in this specific example, the trader executed flawlessly, but the 'Market Geometry' (along with the midday drop in Volume) prevented the trader from obtaining any significant profit. Moments later, however, Volume returned, Pace Accelerated and the market provided increased profits per unit time.


    In this scenario, the experienced trader does not concern themselves over any Wash Trade 'gradient level' result. "Bummer! I lost a tic!" Isn't on the table here. The experienced trader simply knows "these things" (flat or extremely low slope) happen from time to time, and as long as they remain on the "right side" of the market, profits will flow into their account like water flows from a fountain.


    The beginning trader still needs to build such levels of confidence. As a result, practicing 'The Wash Trade Drill" builds this much needed confidence - over time. The results of practicing The Wash Trade Drill, not only tells the trader he (or she) has the ability to exit at breakeven during all types of markets, but more importantly, the results of The Wash Trade Drill, alert the trader to the fact that more work may need to be done, across a variety of areas. In other words, one does not simply randomly enter when performing The Wash Trade Drill. One enters appropriately, then makes every effort to exit at breakeven. In other words, taking a profit or a loss when performing The Wash Trade Drill is not the goal. Done correctly breaking even on each trade is ver difficult to do.


    With respect to how I view an FBO, my answer would depend entirely upon the specific context in question. I could view it as A. Screw-up. B. Benefit (additional profit) C. Jumped Fractal D. Unnecessary Vocabulary E. Innaccurate description of market information. or F. Perfectly anticipated result.


    Personally, I do not see the need to describe such things as an FBO. I believe other (perhaps, phrases which provide additional clarity over the generic FBO ) descriptions exist which more accurately represent the information the market has attempted to convey.




    - Spydertrader

  11. Today's Open with Automated Gap Removal Tool functioning. Please note the Laterals, Pennants, Even Harmonics and Stitches all slide with removal of the overnight Gap. Please also note this tool moves previous trading days so as to ensure the current trading day has the correct Price points - allowing the trader to trade directly off the chart.


    - Spydertrader


  12. I am currently testing two improveements to the Trade Navigator Platform.


    1. Automated Gap Removal Tool.


    2. Freeze Slope of Trend Line.


    Both Tools should be available in the next upgrade of TN.


    This first version of The Gap Removal Tool does not move the annotations (e.g. Trend Lines / Gaussian Lines), but subsequent improvements to The Automated Gap Removal Tool will slide all previous day(s)' annotations (and not just pennants, laterals, EH and stitches as the current tool does).


    By Holding Down the CTRL Key and grabbing the end of a Trend Line, the slope of the specific trend line will remain in place - maintaining its current orientation - as the trader lengthens or shortens a specific line (in an effort to 'clean up' one's chart).


    Those interested in using The Automated Gap Removal Tool will need to contact the friendly folks over at Genesisft.com in order to have their account flagged once The Automated Gap Removal Tools comes out of Beta Testing. Having your account 'flagged' simply provides permission to use the tool and also prevents someone, who does not understand why anyone would want to remove a gap, from accidently triggering the tool. The tools removes all overnight gaps going back to the start of the current contract.


    Of course, both improvements come free of charge to anyone who wishes to use them.


    I plan to report my impressions on both tools to Gensisft this Friday, and I'll repost when the tool leaves Beta Testing and heads into the next Software Version.


    - Spydertrader

  13. I would like to ask if there is a point in this thread where the guys discuss position sizing/risk:reward ratios, or is that all left to each individual's decision making? Are there any sizing/R:R principles you guys use if a sequence is proven wrong and you 'reverse' long/short? Or is it constant size/R:R every trade?


    Ironically, someone asked me this very same question in an email earlier today. As such, I'll repost my response to them here.


    I use no money management strategy whatsoever other than to determine each day my anticipated level of focus. IF I have a backlog of emails to return, or if I turn on Skype or MSN (Yahoo, AIM, ICQ, etc.), then I’ll trade fewer contracts – simply because I have a risk of ‘missing’ things because I’m involved with a conversation. However, If I have no distractions, I’ll max out my number of contracts on each trade.


    In other words, looking at the market through the lens of 'risk vs reward' fails to allow the trader to see that which actually exists - in terms of the market providing information which indicates "the right side of the market." Now, does this mean a beginner, should shove their chips into the center of the table? Of course not. Until you can see (on a consistant basis) that which I have described, then it only makes sense to progress at a pace which does not create stress.


    Earlier in this thread, ramora described how he does things. Others have made similar posts using one contract at a time - until building up sufficient comfort to progress further.


    I didn't start trading 10, 20 or even 40 contracts a clip until months after I traded a single contract successfully.


    Lastly, once you can see (on a consistant basis) that which I have described, you won't even need an answer to the question. :D




    - Spydertrader

  14. I can annotate it, yes.


    O.K. Perhaps, I should have said, "Can you annotate these things correctly in the Price Pane?":helloooo:


    EDIT: I was reading lateral traverse.


    Think about Trend Lines for a moment. In an Up Trend, can a Point Three fall below a Point One? In a down Trend, can a Point Three fall above a Point One? Now apply what you know of these answers onto a Lateral Trend.


    What do you see now?


    - Spydertrader

  15. My view of the day...


    You have a (Medium Weight) Volume Container which completes at noon (Eastern Time and Bar Close). In order to have had a completion at noon, the market also requires a beginning sometime before noon (and according to your (Medium Weight) Gaussians, this beginning commenced on the previous trading day). Can you annotate this specific container in the Price Pane to match your Annotations in the Volume Pane?


    - Spydertrader

  16. Maybe I'm mixing fractal levels? This time through I've managed to eliminate about 4 tapes that were only a few bars in length. Perhaps these were subfractals.


    Any line drawn on a chart must have a rational, objective, definable and consistant reason for doing so. Make sure all lines on your chart conform to this definition.


    - Spydertrader

  17. When does the market provides sufficient information to determine that "The Blue Thing" does not belong on the chart.


    Third Bar from the left (I believe that is the 11:10 Bar)


    How does one arrive at developing a rule set to deal with the specific context of "The Blue Thing"?


    Start by understanding what you know to represent a Lateral Formation. In this specific thread, we have discussed a process for differentiating one specific type of Lateral Formation. While a trader may not have reasoned through all possible outcomes of The Lateral Formation Drill (and Follow Up), the trader does know subtle differences, within this specific type of Lateral Formation, do exist. The process, for the trader, then becomes learning how these differences translate (based on Context and Order of Events) to chart annotations. As such, moving beyond The Lateral Formation Drill (and Follow Up) to other types of Lateral Formations (prior to reaching a fully differentiated mindset) does not provide clarity. In fact, doing so adds unneeded complexity. Therefore, unless and until one has a complete understanding of one specific type of Lateral Formation, I recommend focusing exclusively on that alone. Place no other examples of Laterals on your chart. You might find that these 'other types' of Lateral Formations bias your thinking, rather than, provide the clarity they were intended. In other words, take things one step at a time.


    So far I have not been able to locate the context that meets the definition that I constructed for "The Blue Thing". Is this the case of the incorrect definition (e.g. too rigid)?.


    It appears that you are wondering, "How best to construct (define) a Blue Thing?" This is a fair question. However, I'm merely suggesting you do not need to know how to build (create, construct or define) something, until you answer the question, "Do I need to build (create, construct or define) something?" Right now, unless and until one can go through any example of a Lateral Formation (as defined by The Lateral Formation Drill [and Follow Up]) and know the outcome, then placing additional examples of any other type of Lateral Formation (e.g. those that do not conform to The Lateral Formation Drill [and Follow Up]) on one's chart may create a bias in thinking. That bias, may cause the trader to believe something has developed, when in reality, something has not.


    Is there something similar to "The Blue Thing" that YOU have seen in the past on ES, YM, or anything else, which allows YOU to say: “OK, this "Blue Thing" represents the same context and based on how things worked out last time, placing the lateral annotation here would be a mistake.”? And if so, how did YOU determine that "The Blue Thing" represents the same context from which you generalized (derived) the rule set to be applied to "The Blue Thing".


    Most Definitely. What is more, you've seen it as well. In fact, it is that which caused Double Eagle to place a skinny line on his chart - rather than an accelerated Medium Weight Line.


    I determined the need existed for a change in 'Annotation Technique' because I repeatedly 'jumped fractals' while attempting to maintain fractal integrity. Since, "The Market is Always Right!" the source of error had to be my own. But wait a second, I have no errors! Well, eliminate the impossible (the market is occasionally wrong) and whatever is left (Spydertrader mucked up his annotations), however improbable, must be possible. As a result, I went back to what I knew to be true, and tested it. I did the same, over and over again, with everything I knew to be true - step by step, piece by piece, bar by bar - until i located the source of my error.


    This is the process of differentiation.


    I understand that you created this thread to assist in learning themselves how to fish as opposed to teaching how to fish. To me, the water appears to be so muddy that I can’t even see the fish to begin with. As always, any insight you can share on this subject would be greatly appreciated. Thank you.


    I understand reaching , what appears to be, amazingly high levels of frustration while traveling down this road. As a result, I have no problem assisting those who require a nudge in one direction or another. I also understand I can often add to that frustration when I provide answers which appear to provide less than optimal information. Some have suggested my answers appear more like 'riddles' than as an offer of assistance.


    My best suggestion would be to stop focusing on all unknowns - at once - and instead, focus on the unknowns - one at a time.




    - Spydertrader

  18. Thursday, Feb 25, 2010


    O.K., so you 'lost track' of things, and as a result, the the day's plot became a little muddled for a spell. Now (at the end of the day), the market has clearly provided some certainty on the subject. Having said that, are you certain all trend lines accurately reflect the market? Perhaps, some of your longer term trend lines have created a bias (in your mind's eye) causing you to 'see' things one way - instead of another.


    Debrief is an excellent time to double check, and validate (in addition to learning something new).


    - Spydertrader

  19. Here is a second version of my 02/24/2010 chart.


    Much better.


    I will know fairly quickly when the market opens if my medium weight pink trend (from 13:35) is going to be invalidated by a bar that goes above the gap adjusted 13:35 bar.


    This is how we learn. Step by step. Piece by piece.


    Keep up the great work.


    - Spydertrader

  20. Because "The Blue Thing" is above our trading fractal?


    Because placing "The Blue Thing" on your charts fails to provide sufficent information for most individuals to distinguish between one fractal or another. In other words, "The Blue Thing" says to the trader one thing, when quite another thing entirely is taking place.


    - Spydertrader

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