Specialized Vocabulary for FX
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Thread: Specialized Vocabulary for FX

  1. #1
    Quite a lot of individuals PM me, and I seems that my answers are perplexing because I use a rather technical lexicon. I will try to make a mini-glossary of words as they link to FX and the way I use them.

    It seems that the majority of the accessible descriptions are insufficient for what I wish to perform in the markets, and so I borrow from around in an attempt to have language fit the description. I will try to give some wallpapers on how _that I _ came to explain them so, because some of you seem fascinated by phrasal origins. When there is something I said in one of my posts or PM's that was confusing, please let me know and I will add it here. I feel that the larger the breadth of your language, the greater your believing, and so it is with life, and so it's with FX. I will try to keep it in alphabetical order, but no promises. Some will probably be in adjective form, some in noun form, some in verb form. Most probably will be in the verb or noun form.


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    LandWarring ~ From the Princess Bride: Ha ha! You fool! You fell victim to one of the classic blunders! The most famous is never get involved in a land war in Asia, but only slightly less well-known is this: never go in against a Sicilian when death is on the line!

    LandWarring describes automated trading and sniping of a few pips. Given a slight edge, and investing in a ridiculous sum, the idea is that if automated, you too can be like a casino. The number of trades are absurd and thus probably only doable if you are a Japanese guy eating nothing but instant noodles for a living and trading 16 hours a day (true story) or a computer software. LandWarring generally involves quite short timeframes, such as 1M or 5M and can rack up Bid/Ask payments that exceed profit. It is called LandWarring from the simple fact it is hoping to earn a profit from precisely the exact same way as that of those previous landwars in asia.
    Quote Originally Posted by ;
    Ha ha! You fool! You fell victim to one of the classic blunders! The most famous is never get involved in a land war in Asia,
    From The Princess Bride


    Toothpicking ~ Toothpicking is in reference to bugs bunny, where he cuts down a tree, and then shaves it down to a toothpick. It's neither environmentally friendly, nor even a good use of resource. But in the FX term, it describes the concept of having a lot of signals, and then ridiculously filtering them to the point at which you get one abandoned. There are systems that use 10 indiors, and those systems generally are toothpicking systems.

    Author's notes: Most systems fall into one of the two egories; landwarring or toothpicking. Most day traders are landwarring, and everybody else is toothpicking. If you are likely to landwar, subsequently the BIGGEST factor BY FAR, is how much you are spending in commissions. If you are toothpicking, your quality of filtration function as main profit determinant.

    Tardising ~ From the 1950's police box called a TARDIS, an acryonym for (Time And Relative Dimension(s) In Space) from the TV Show Doctor Who. It describes the concept of extracting more pips out of a price movement than the actual movement. From the TV show Doctor Who, the inside of a Tardis was larger than the exterior. In FX, if a price movement (peak to trough) was state, 200 pips, the ability to extract more than 200 raw pips from it would be considered Tardising. Super efficient systems will allow a trader to Tardis price movements.

    Fisting ~ (The FX behave, not the sexual activity ) Based on a trading platform I created called The Fist. The fist uses a position management system called CDM, and in doing this, is able to Tardis.

    CDM ~ Cocaine Distribution Model. Upon reading a post about Dell and Walmart, I read some research that said of the distribution versions available, the most efficient was that of the frequent cocaine distribution. Cocaine distribution can instantly take into account, new providers, new middlemen, new customers, or all 3. The machine is more efficient than anything done at Dell or Walmart, and is the basis of The Fist. It is not a cash management system, so much as a position distribution model. It frees for new players into a market, old players, climbs in B/A spread, market volatility and everything else that plagues most position distribution versions.

    Trendfans ~ A system I created based on the 2nd volume of my novel. By employing a scientific definition of a Trendline that is consistent, a cascading effect could be drawn, and a trendfan can be produced. A trendfan allows the topographer to plot out the smoothness of a trend, something that has never been done before previously.

    OLWE (Old Larry Willi Exit) ~ OLWE refers to the trader Larry Willi, also what he advoed in one of this books. He was the very first (to my understanding ) to advoe Time Action centered exits. His previous recommendation was depart on 5 bars afterwards. This is sometimes known simply as Larry Exits.

    NLWE (New Larry Willi Exit) ~ NLWE describes the way in his most recent tape, he uses depart. He'll conduct a statistical analysis of a set day bias, and then depart on the first profitable open of a bar. Additionally, this is a Time Action predied exit, instead of a price based depart.

    KN (Kelly Number) ~ Refers to the Kelly Formula, or Kelly Criterion created by http://en.wikipedia.org/wiki/John_Larry_Kelly,_Jr at 1956. Your Kelly Number, usually expressed at a % format, tells your optimal bet size.

    Do Re Mi ~ A complete reversal detection system. The title refers to the names given to the initial 3 musical notes. I had planned on writing a complete novel about this, and will.

    TA (Time Action) ~ Different than price action, also is its counterpart. As price action means price, time activity means time. Anytime something is done either in the close or open or in a specific period in a day (i.e. NY open, NY Close etc..) That is considered time activity. Contrasted with PRICE ACTION, if something is done since a certain price level was hit, or a particular underlining hit. If you are utilizing high low or bid ask you are doing Price Action. If you are using Open Close you are utilizing Time Action. They're planarily independent of each other.

    Author's notes TA: The standard chart that many usage is at best, a lie. Time activity is placed on a price action chart, and thus many are confused. An accurate representation of period action ought to be akin to an EKG chart. That way, time for a factor is really displayed.

    Mini-Max (Saddlepoint) ~ As in Calculus (people who have never heard calculus, should not bother trading... not being sarcastic or elitist, just fair. People who believe they don't need to learn calculus proves exactly my purpose; you are just too stupid to know that you will need to know calculus)


    Provided a risk curve, and a profit curve plotted on 2 different sets of airplanes, there is a point (the mini-max stage ) AKA the saddlepoint, where you have a maximized reward stage, to get a diminished risk point. A good system should attract you to the saddlepoint. In FX, the Saddlepoint is asymptotic.

  2. #2
    Old I understand. . But sweet

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