Thread: Twoblink and quotThe Secret Saucequot

I am on a quest, and I guess I will document the quest.

I am on the quest for The Secret Sauce of Forex. There are. My hero of course, is Ed Seykota. He has the sauce.

Now what makes The Secret Sauce distinct from The Holy Grail? The Secret Sauce Isn't the Holy Grail. The Holy Grail is what Jesus drank out of, what collected his blood in the cross, what the Nights Templar hid. The Holy Grail of Forex, is that super duper, use it and you'll be rich beyond your wildest dre, not bullets can penetrate you, type of thing. It does not exist.

HOWEVER, the secret sauce, does exist. The secret sauce, means just what it says it means. It is not the hamburger, but it goes a long way! It makes them taste good, although it's not babyback ribs. It is the thing that you put on top, that makes everything JUST TASTE RIGHT.

The Secret Sauce, is usually something really subtle. . As an instance, how can you cook a steak that is great? If you started with a frozen or cold slab of meat, you are never going to have a great steak. Or at least not as good as it can be. The secret sauce, is as easy as wrapping up the steak in syran wrap before cooking it, until it gets.

During my life, I have gradually discovered quite a few secret sauces in different areas of my life; like martial arts, and cooking. It is time for the Forex to show its secret sauce.

I have usually gone through this procedure, undocumented, and unshared. I felt I have profited that committing is the ideal thing to do. .

So that I will snip articles. And write down my train of thought on my journey. I am not sure, when it is discovered by me, I will expose it. But, I guarantee I will leave a path of how I got there. The journey will be extreme, but I expect it will be a short one.

I am writing down this, as I feel, I am on the verge of discovery. . And perhaps, an open conversation about it, might allow me to think more clearly.

Http://www.moneyweb.co.za/eduion/share_focus/326478.htm

Originally Posted by ;

Pattern and Time

The two dominant technical forces in the stock market game are those of ?pattern? and ?period?.

The pattern is that the market follows a path. It's either in a route going up i.e. in a bull pattern/phase or inside a bear pattern/phase going down.

This pattern then follows a certain time schedule, frequently based on historical cycles.

Technical analysis is the listing, in one form or another, of the true history of trading in a particular share (or an index, to represent a group of stocks) after which the deduction from that envisioned history of the likely future trend.

To a large extent, technical analysis is at its ultimate, the study of prices rather distinct from values.
All the technical analyst worries himself is if the price of a share will go up or down.

He will assert that he would rather buy a talk in a awful business in a bull market than buy one in a good business in a bear market.

So here, the author talks about Patterns and Time. That is fairly 3D. For this author, he feels that these are the two singularities. While a bar chart is 2D, it is 3D, perhaps 4D.

Patterns, perhaps Candlesticks, and Time. . Perhaps multiple moving averages as two MA's give you hundreds of pieces of information. .

1) Exactly what the market is doing on average (That's why it's called an MA!)
2) The gap between the two MA's informs me about the diverse outlooks between two groups of individuals; however, this isn't accurate, as the short group will always be included in the lengthy group, it informs me exactly what the FRINGE are believing. . I will have to consider that. (Note to self, 2MA = Left Outer Join in Database Conditions) Screenshot below to remind myself what a left outer join looks like.



3) Given 2nd order derivative of the MA's, I'll understand concavity. Given two concavities, I'll understand the Inflection point. Since I'll have two concavities, and so two distinct inflection points, delta(inflection point 1, inflection stage 2) will provide me a change in time. I have no clue what this change means. I postulate that because this is the gap between what the short group vs. long set is believing, this would mean the change in timeframe viewpoint of short group vs. long group. I.e. does this imply, this is actually the time/space disturbance brought on by the prognosis of this fringe group according to the outer join?? Inflection point screenshot below, to make sure I remember what I'm discussing. Inflection spelled wrong. .

Http://www.clas.ucsb.edu/staff/lee/i...20f(x).gif

The question at hand is, because MA's smooth things out, however, the price, is twisted, almost similar to jpg compression, I'm losing something in the process. Is what I've lost really quite important, or not so significant? Is there some way for me to get back what I lost in terms of information??

MA is a lagging indior; and therefore it informs me about HISTORY. Does history tell me?

Originally Posted by ;

He who controls the present, controls the past. He who controls the past, controls the future. (

Originally Posted by ;

George Orwell)

So does Orwell hold the key to unlocking good utilization of MA's??

Http://moneymanager.smh.com.au/inves.../shares07.html

Originally Posted by ;

A trader wants to know whether they buy now, is this inventory likely to keep moving up for another three, five or 20 days, and also an investor wants to know whether the stock is likely to be higher in three, six or 12 months, Guppy states. It is not good enough to say 'I am a long term trader, I don't have to manage my risk'.

When choosing a charting package, the trend is to search to find the one using as many indiors and attributes as you can. However, when you develop your trading egy that is technicalit might comprise one indior. So paying through the nose for additional features are going to be a big waste of money. Your starting point for an eduion in technical analysis should be a thorough comprehension of the two key tenets of charting.


The first is known as trend, and it's simply the direction of the price. A fundamental approach may recommend buying a share even though a downward price, if a stock is undervalued. But, applying the basic principles of charting would not prescribe buying shares if a stock is decreasing.

The second tenet is support and resistance. A level at which the price stalls or reverses is known as support if it's underneath the current price or resistance if it's above. These amounts may not have any logical significance in fundamental conditions. For a specialized trader, identifying support and resistance provides a standard for the strength of a trend as well as areas on the chart in which he or she is able to enter or exit a stock.

Ahh. . Mr. Guppy and his Guppy graphs. I enjoy them. . It is there, although he alludes to time indirectly.

Support and Resistance. . That is a toughy. . How can you do it? S/R is so imprecise I don't even know where to begin. Visually, a few things are absolutely evident to your eye ( so I'm presuming) but not to a software appliion. Do I pay special attention at Fib levels and think Fibonnaci? I need to admit, fib amounts from rings of 55MA such as Vegas states, does reveal support and resistance, but might be more plogical than anything. We humans are creatures of habit, and since our society operates on a basis of base 10, we like 0's and 50's. Clean amounts. . We collect it around. Hmm. . So do we attack the amounts as they are, or do we need to take into account the psyche of those people who are enjoying the market??

So, we've got two articles, which alludes to 4 special ingredients, at a two two pair.

1) Pattern
two) Time


1) Trend
2) Support and Resistance

However, the next post reverted to Time as well. Trend supports the Idea of Pattern.

So, so far, we have got:

1) Pattern (as it encircles Trend)
two) Time (Although, time is 2D, so we want more clues about time. .)
3) Support and Resistance. . I am wondering if I push this under Pattern too. OPR (Optical Pattern Recognition Systems. .)

I'm going to have to see how missiles know what the lay of this land resembles. . Military Technology search time. .

Time, has the time of this chart, and also the relationship between the bars... If we tweaked if we deem as open and shut I think the chart will change drastically. Therefore, how do we filter this strange shift out??

I wonder if anyone has attempted to compose and employ either a Mean-Squared filter or a Wiener Filter for the Foreign Exchange market. . Mean Squared seems like it should be difficult to program. Wiener filtering nevertheless, seems difficult in the availablility of this current Forex languages...

Maybe Mean-Squared as a Moving Average might do well. .

http://www.mathworks.co.uk/access/he.../adapti10.html

Http://crm114.sourceforge.net/

So I'm now officially with this filtering binge. . And I thought, well, there's filters that I work with everyday, that have up of 98% accuracy. .

So after lunch, I thought I would start investigating about using Markovian methods on the Foreign Exchange. . Has anyone tried this??

CRM does triplet comparisons when I'm not mistaken. . This could mean, it is like a Mini Sushi Roll. .

I'm going to cut this entry short, and app in the sushi roll at this time. . into VT..

Twoblink.

You are digging too heavy. The answers are near the surface. Even the WD Gann attempted to obtain the holy grail with his stuff that was mathematical. Gann believed he found it. People belief was left by him so. He was incorrect. He died without cracking these markets.

There is no holy grail! Except it!

Twoblink

The answer can be found in the way that you roll your funds out. No businessman will buy something now and expect to sell it for a profit over 2 hours , or even two weeks out of here. If you buy a diamond it will loose value. But this doesn't necessarily mean that you have to sell it since the value has fallen. No, you maintain it.... In time the value increases and then you sell it. This is any business work isn't it? Your objective is to create profit. Forex is exactly the same.

The only distinction is a few traders want to observe the profits immediately after going into the trade. Nobody is prepared to wait. All good things comes.

If a person buys a house you add value yourself by keeping your property so that you can sell it for a profit. Forex trading is the same. You buy or sell and keep it together the way. It is a business....nothing else.

Hey Cobra...

If Gann died as a failure ($51Million Networth at time of Departure I presume) Then I expect I can fail that nicely!!

Second, Reread my initial entry, I'm not looking for the Holy Grail, I'm Seeking the Secret Sauce. . Two different quests. . I say from the very first entrance. .

As far as the sauce, I have not found it yet, but I'm beginning to understand some of the ingredients that goes into making it...

you're getting me. . The waiting occurred BEFORE the entrance. A system that is mechanized will yield very near probability; and that's exactly what I want. The home has a lt;3% edge on the Roulette with just 1 zero nevertheless they make billions on it... Straight probability. .

There's a secret sauce out there...

I Chased the Sushi Roll into VT.. I was not impressed.

NEXT. .

The Secret Sauce may be on the surface, but that will not prevent me from finding out exactly what the secret sauce is covering up. .