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.



Enjoy.







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



Spydertrader's Jack Hershey Equities Journal

http://www.elitetrader.com/vb/showt...&threadid=38777

Spydertrader's Jack Hershey Futures Trading Journal

http://www.elitetrader.com/vb/showt...&threadid=83604

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.

Attachment: sense inference perception.jpg

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During the day, four activities are conducted for anyone trading purposefully.



Doing a routine



Logging



trading



debriefing



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.





Attachment: neox pm chart for logging.jpg

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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.

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.

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.





Attachment: noex am chart 1.jpg

This has been downloaded 2245 time(s).

As a boot camp college student, the lab has been running for 35 minutes considering the start of the lab and 6 bars being observed and the annotating and logging are the main ingredients.



The instructor would go around class and use a laser on the screen to point out a lot of information to be obsreved and to be logged and to be annotated.



the three principles, the PV relation and a lot of items would be on the table. the sweeps chart is important because it is suggesting that almost nothing is happening in order to make money.



I have all the distractors on ignore and I do read the "quotes" of those who entertain thier remarks.



ET wasn't always this way. In the beginning the ratio was 7 to 1 to detractors to contributors. In CW only so much is possible. CW cannot be used to deal with an algorithm that is outside of CW as is the pool extraction algorithm.



The fact that this algorithm is a horizontal one and not vertical as is CW is another stumbling block for those who are CW differentiated.



finally, the components of support, comfort and confidence of this algorithm do not exist in CW. There in CW, there is much impairment as fear, anxiety, and anger dominate the sensory process of OODA, which was originally designed to train fighter pilots during the MIG era. John Boyd was a successful fighter pilot and subsequently a successful trainer of fighter pilots.



Trading to make money is not "fighter pilot" and there is not even any concept of competing in trading.



By using binary vectors (direction and magnitude) we eliminate several handicaps other CW readers constantly face. There are only two possibilities when using binary vectors and always one or the other is in effect. To make the choice of one or the other, the most recent evidence is used for comparison in the Present. MADA is used over and over.



Things are slowed down considerably by using 81 bars to cover 6 and 1/2 hours. Both price and colume are used from the beginning to describe the Present.



Channels are composed of traverses and traverses are composed of tapes. The tapes originate from 2 bars and there are seven cases involved. This is annotation and it is part of M of MADA the routine,



The routine is one of certainty and is complete often and then repeated. By doing this the mind reaches closure every MADA cycle and there is nver any guesswork involved since everything is a binary vector from the beginning.



the beginner just uses channels and the corresponding volume eebb and flow. Channels overlap and the overlap has a beginning and an end which is notable. All the beginner does is note the occasional beginng of the overlap and change sides of the market in order to be on the right side during all times.



Two column on the log are inportant for this: the MODE column and the D column. They are separated by the remarks column where what is going on is noted. For beginners the remarks column is largely the history of going from pts 1, 2, and 3 to FTT. Pt 1 and FTT coincide. The MODE is C for continue most of the time. H goes in the D column and it stands for HOLD. When a reversal occurs, an X standing for change goes in the MODE column. If an X is in the MODE column, the D column does NOR have an H placed in the column. Instead a decision is made to reverse so an R for reversal is placed in the decision column. An FTT will be found in the remarks column between the MODE column and the D column.



Basically a person in boot camp can pick up four log sheets before open and put in most of the beginner MODE, remarks and D column data on the logs before the market opens.



Basically he is going to go up and down volume moutains on dominant and non dominant trails until he comes to a peak and an FTT appears in the remarks column. In the MODE column on that row will be and X and over in the D column he will write in an R for the reversal action. He will note the contracts, bar, time and Price on the far right of the log.



Shortly after this and during the rows of logging the overlap (put overlap in the remarks), he comes to a BO on the RTL and notes either a R2R or B2B in the volume column.



Any boot camp person can use an evening to fill in four log pages for an M day and four log pages for aW day. He can grab four sheets and do a long trending day or a short trending day or he can do both.



here is a CW mind chart for the Bohr effect. At this time the oxygen level flowing to the brain by being pumped by the heart drops down to about 50% of normal. Some of you may have heard of the "early exit" which is a trade mark for getting to the sidelines in PA trading, one of the common CW types of trading. Low oxygen levels are one of the causal factors for the "early exit" The other is "blowing out" during cascading right after protective stops become unexecuted market orders far from where the stop was presumed to be activated.



In a couple of days we can use the boot camp to go through whole days in about 40 minutes as a drill in logging a whole day in 40 minutes using MADA at a fast rep rate.





Attachment: bohr effect as shown by stressed beginner.jpg

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This is the next row of logging. The pic shows the OB.







As daniel33 notes when he reads it is verbal diahrerra (sp) for him. He is differentiated to another set og beliefs and as a consequence the streams of words going in through his reading sensor and to the three operators that pass things on to his mind memories, don't resonate with him in any logical or structured way. More reading gets the same result.



for anyone interested look in two places: the sympathetic and parasympathetic activity of fight or flight, respectively. The gas pedal or the brake pedal.



He types with the gas pedal and then decides to apply the brakes and evaporate.



This thread has inputs he sees as stressors>>>>> he goes on auto >>>>>> types emotional >>>>> and at his PC and in the chair too late deals with the physical manifestations. He stsates he is not going to repeat these laps he has been taking as posts trigger him over and over.



He seeks information that supplies his differentiated mind according to its differentiation. To do any of this he requires a means to change his beliefs. No one in the thread can act as a supplier of the means.



In heart and mind and body parlance, he requires a training system that will allow him to not go on automatic when he perceives a stressor. He has to change, intentionally his heart's waveform. I can give him instructions and he can see it happen as an exercise. In boot camp is is a requirement and the PC would be used after the manual drill so a person cqan recognize how the mind --- heart connection works. Once the connection is there then the means is developed usig a PC display where just talking the person through the drills get the person conscious of the technique.



To learn in boot camp, you have to leave a lot of stuff at the door and once inside you have to get oriented for the trading day and for accepting input.



I am tring to point out slowly with a few pics and anotations what a person starting out in boot camp has to key before him to be able to deal with all opportunities that come with each bar.



reading any of this as daniel33 does is a waste of time simply because your mind -- heart -- body conections are prewired to do into an auto fight or flight response that you have ZERO control over.



to learn you cannot fight



to learn you cannot do flight.



Both are emotionally driven by a syndrome as old as man and his survival before PC's or any tools whatsoever.



Learning in an algorithm that is horizontally oriented is a situation where thinking critically without any auto responses like those on ignore have is required.



Tia Chi is not lept into either. Breathing preparation allows all practitioners to come simply to a rooted state where they are grateful and have appreciation for and about themselves, others and the world.



Bill Moyers wrote about many of these things in the early 90's he went to see about things with David Eisenberg. The PBS series on this stuff was classic and ranks with Campbell's informative work on cultures and their common ways.



So Chi is the aspect of a person that enwraps his life spark and being. Qi is the eastern word. Read "Healing and the Mind" by Moyers and "Encounters with Qi" by David Eisenberg.

Attachment: neox am chart 3.jpg

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Here we see what happens after bar 7 an OB. The shadow of the OB is what the beginner is annotating.



In january of 2007 we spent the month and the month of february getting annotating down all in the context of the P, V relation. 60 days to get underway in the syllabus and with very hearvy moderation.



That year 1 million hits happenedin that thread. This year it is closed and has had another 500,000 hits and the Iterative refinement follow on has had over 800,000 hits so far this year.



Here we see two BO's and the shadow broken on the respective next bars. This gives tapes and they are steep. and the volume for all four bars is extrordinary. For a beginner he is witnessing a lot of action and he is in the market.



By the start of the shadow breakout of the last OB, the whole day jells for all levels of traders. Annotating the pt 1, 2, and 3, of the start of the day has occurred and not everything was squeeky clean. To see between the C's of the MODE column and the H's of the D column a set of remarks filled in that include pt 3 and then point 2 and THEN having the RTL and LTL drawn in is an accomplishment in boot camp day 1 by 10:15 or so completes an hour of 6 and 1/2 hours.



An expert is also feeling good and has several reversals under his belt as well. The last week of boot camp will have all the students trading as experts as well.





Attachment: neox am chart 4.jpg

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