Ticker Continued (2/4/2004)

The ticker has moved along, and as usual I have found several things that I overlooked at the outset. Trade # 3 has been fixed so that now when it is below the color indicator, it moves under the color yellow when above itself, and when it is above the color indicator, and below itself, it will be yellow also. The former has been fixed in release 1177, and the latter should be fixed with the next new release [1178].

Trade # 5 and those after it had a problem of not indicating direction when below itself and above the created standard for colors indication. They would show green dots, which would indicate higher prices when in fact price would be going down. Now this conditions is shown by green pluses [+], and the same holds for those trades when below the color indicator yet above themselves, this is shown by red pluses [+]

The other items remain to be fixed; first the blue last price indicator sometimes does not show due to scaling, and that should be fixed shortly, second that when there are price gaps, the indictor gets confused and goes to the wrong end of the current display medium [dots, chevrons, pluses]. I have not decided on how to deal with this yet. Third, the memory problem has been improved but still needs more work.

Another thing that need an explanation deals with no activity indicator when a new entry is made [#] –where one would expect [#] and either dots or chevrons. We have incorporated two tolerances—one of time, and the second of price to eliminate noise associated with the immediate change caused by the entry. The delay is only for a short period of time, and so far I have felt that it is working as I had planned it.

When there is only the carryover trade, the brackets are to be gold when it is above the exit box, and white when below it. The half marks are used when the entry is between the highs and lows and indicates lower when it’s white on the left, higher when on the right. Right now the former are coming out randomly, and the later is the way it should be. This should be fixed on the next release.

The data fields that occur at the end of the 0-4 programs are now producing the type of information I had hoped for, and they will be covered at the class.

More on using the ticker

Markets are controlled by allocation and not price. Allocation can be compared to twenty locals in a pit where no orders arrive; that market will have a new high, new low and go nowhere. When orders arrive the market will have a chance a doing something directional. Allocation is non-random in that it continues until over-allocation occurs, and then liquidation happens. Allocation can also be a non-start where positions keep getting knocked out before direction can be established.

Our 0-4, which is the basis for the ticker, concentrates upon the allocation process, by featuring entries into the platform, using exit and restart programs to define the balanced entry process, and to assign zero sums to buyers/sellers by isolating directional activities. The 0-4 is a very stable platform, which is what is needed to define continuation, and thus the stability of the ticker.

The brackets, which indicate entry, are the most important part of the ticker. [The numbers inside the brackets will be discussed at the next class-- late April or early May]. They [brackets], when combined with the exit program, offer a definition of holding or staying by the long portion of the entry process. Entry without exit means that the equality of access-- a buyer and a seller-- has been altered, becoming unbalanced, by the illustration of a non-exit capability within the continuous market.

The brackets also define the ability of new entries to overcome or maintain a continuous direction. The brackets are color coded to help define conditions; Where there is only the carryover trade and exit box, the color is gold where the carryover trade is above the exit, and indicates that the carryover equity is a burden, the brackets are white when the carryover trade is below the exit box to indicate that it is not a burden. These initial bracket colors have the potential to change as soon as trade #2 arrives, and with the higher of the two becoming gold. Other new entries will be gold if higher, both white if a new low, and left white lower, right white higher, inside of the range already established.

Successful trading is finding situations that can overcome current circumstances, and then to maintain that control. The first requirement for that to occur is to have entries into the market, second is where these entries are able to overcome their entry position or to persevere by holding on. Gold brackets starting with trade two is where allocation is entering high, and where that wins, it shows the ability to overcome. Also, high entry is not a scared entry, so the market should stall rather than fall, if it does not continue moving up.

This combination produces a favorable win loss ratio, and more importantly one that is easily defined. Another way entries overcome is to keep accumulating without exiting, which eventually gives them the power to overcome. These entries will have white brackets and gray [double gray is unchanged], and will be rather close together. As the market moves away from the entries with dots etc. the platform direction is established and hard to change. It normally takes new entries to produce an over-allocation, which then produces an exit.

The dots, chevrons, and pluses are color schemed to show direction and zero sums. Green colors means that it is moving aggressively forward, yellow can be either up or down without much force, and red means that it moving down, but not necessarily aggressively. This is so due to the program bias of being always long, and restarting immediately after an exit. Red has a higher meaning in that it tells you that the program can potentially exit or is having difficulty and awaiting new entries that could overcome the present circumstances. Going short, which the program can do well, is not related to the red colors, and this, and other points related to the short side, will be discussed at the next class.

Clarifying note--in fact, one should be looking at red indicators in terms of time, in that buying exits or buying n days after are both viable programs, and buying something that cannot quite exit is also good. Also, note that the former are now being incorporated into a personalized 0-4 soon to out in a new release.

Pete