Body of Knowledge

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There is an old saying that “Order is Heaven’s First Law.”  To me that “order” isFibonacci Ordinals.   When used properly it filters out the market’s “noise” that causes fractured setups causing one to trade “dead zones” that causes losses.

J.M. Hurst, author of The Profit Magic of Stock Transaction Timingboiled it down to profit optimizing through timing the price motion. In quantum physics, the space-time continuum parallels this concept.  

In nature, the Fibonacci ratio logarithmic ordinals exist in each cellular living entity has an arrangement of patterned sequencing.  The Golden Ratio arch length -137.5 – is another example found with plant’s leaf configurations.  The sections the human hand, the five-sided star symmetry that equates to Phi, the Chamber Nautilus spiral and even the inner ear or “cochlea” forms a Golden Spiral.  Phi functions to bring things back to balance in a wave collapse or

The “profit magic” numerical of the Phi equilibrium is 0.618.

Critical Path Analysis

My approach is twofold in trading or investing: Intraday Scalps and/or Swings.  I do not Position trade with this system.  Up until 2003 position trading was profitable, but with the Basel II decision that allowed unregulated derivative and now high frequency trading (HFT), one must be more flexible to shorter term trades.

J.M Hurst showed that, “Assuming accuracy of transaction timing, you will always make more money by short term trades than by long ones.”  Hurst was before his time on this one as HFT has dramatically skewed this transaction timing.   

The GRTS (Golden Ratio Trading System) was established in 2002 based on the cyclic equilibrium of Fibonacci Ordinals.  

I hypothesized that the Forex 24/7 market provided the most advantageous instrument for strategically testing this quantum system thesis considering its constant price fluctuations based on three overlapping major trading time zones.  Time and price motion correlative to trending wave patterns were documented for empirical resources. 

I determined to focus on the “wave function”  with the five major currency pairs: EURUSD, AUDUSD, USDCHF, USDJPY, GBPUSD by inserting an observable element:  Exponential Moving Average overlay of five EMA’s set at 13, 34, 89, 144 and 377.

Schrodinger’s Equation

The wave collapse theory is ”the reduction of all possible physical states to a single possibility which is measured by the observer – based on Schrodinger’s “time dependent” general equation.  

Ψ  is the wave function (trend); i is the imaginary unit (fundamentals and market sentiment); and then  ħ is the reduced Planck constant (energy frequency/wavelength/intensity = volume and volatility) operated by Ĥ (Hamiltonian operator) characterizing the total energy of the wavefunction.

The Uncertainty Principle

In consideration of The Planck constant, the uncertainty principle or “either-or” entry/exit points forces measurement attempts to trade offs rather than gray areas of time series analysis. So this equation is incorporated.

Assumptions underlying price targets for entry and exit points needs a commutator relationship between the position operator 

 and momentum operator 

;

 

 where δij  is the Kronecker delta.

Overall, the GRTS system is evolving with time keeping in mind the root methods and strategies to build upon and enhancement to confront the real time reality of the financial markets.

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Body of Knowledge

Image

 

There is an old saying that “Order is Heaven’s First Law.”  To me that “order” isFibonacci Ordinals.   When used properly it filters out the market’s “noise” that causes fractured setups causing one to trade “dead zones” that causes losses.

J.M. Hurst, author of The Profit Magic of Stock Transaction Timingboiled it down to profit optimizing through timing the price motion. In quantum physics, the space-time continuum parallels this concept.  

In nature, the Fibonacci ratio logarithmic ordinals exist in each cellular living entity has an arrangement of patterned sequencing.  The Golden Ratio arch length -137.5 – is another example found with plant’s leaf configurations.  The sections the human hand, the five-sided star symmetry that equates to Phi, the Chamber Nautilus spiral and even the inner ear or “cochlea” forms a Golden Spiral.  Phi functions to bring things back to balance in a wave collapse or

The “profit magic” numerical of the Phi equilibrium is 0.618.

Critical Path Analysis

My approach is twofold in trading or investing: Intraday Scalps and/or Swings.  I do not Position trade with this system.  Up until 2003 position trading was profitable, but with the Basel II decision that allowed unregulated derivative and now high frequency trading (HFT), one must be more flexible to shorter term trades.

J.M Hurst showed that, “Assuming accuracy of transaction timing, you will always make more money by short term trades than by long ones.”  Hurst was before his time on this one as HFT has dramatically skewed this transaction timing.   

The GRTS (Golden Ratio Trading System) was established in 2002 based on the cyclic equilibrium of Fibonacci Ordinals.  

I hypothesized that the Forex 24/7 market provided the most advantageous instrument for strategically testing this quantum system thesis considering its constant price fluctuations based on three overlapping major trading time zones.  Time and price motion correlative to trending wave patterns were documented for empirical resources. 

I determined to focus on the “wave function”  with the five major currency pairs: EURUSD, AUDUSD, USDCHF, USDJPY, GBPUSD by inserting an observable element:  Exponential Moving Average overlay of five EMA’s set at 13, 34, 89, 144 and 377.

Schrodinger’s Equation

The wave collapse theory is ”the reduction of all possible physical states to a single possibility which is measured by the observer – based on Schrodinger’s “time dependent” general equation.  

Ψ  is the wave function (trend); i is the imaginary unit (fundamentals and market sentiment); and then  ħ is the reduced Planck constant (energy frequency/wavelength/intensity = volume and volatility) operated by Ĥ (Hamiltonian operator) characterizing the total energy of the wavefunction.

The Uncertainty Principle

In consideration of The Planck constant, the uncertainty principle or “either-or” entry/exit points forces measurement attempts to trade offs rather than gray areas of time series analysis. So this equation is incorporated.

Assumptions underlying price targets for entry and exit points needs a commutator relationship between the position operator 

 and momentum operator 

;

 

 where δij  is the Kronecker delta.

Overall, the GRTS system is evolving with time keeping in mind the root methods and strategies to build upon and enhancement to confront the real time reality of the financial markets.

Dashboard Notes

Working on WordPress development. “Time It Was” is copy content as a work in progress while connecting the dots of social media expansions/plug ins.

Stop Me If You’ve Heard This One Before

Stop Me If You’ve Heard This One Before.

Time It Was – The Train

She remained like a vivid photograph in my memory. We met during a taxi cab ride, sharing the fare in Times Square, New York City. Time stood still amid a place where all the fools rushed about.  She was truly the most beautiful woman I’d ever seen.

The tension between us was like the intensity of flamenco music.  She was shy, but I caught her catching a glimpse of me out of the corner of my eye.  I as well was holding back, though bursting inside to ask her a thousand questions about her; name, where she lived, going, how old and was she married.  I caught my breath.

We both shifted ourselves on the back seat. Our hands brushed together.  The touch sent me spinning like a whip cracked in my heart.  She was truly the most beautiful woman I’d ever seen. Truth is she was my freedom, my epiphany.

In a soothing French accent of broken English she told the driver to stop.  She paid her fare, turned to me and kissed me on the cheek.  Her kiss left a smug of her red lipstick on my right cheek.

Au revoir“, she said.  “Merci.”

“Wait,” I said reaching out my hand to grab her arm.  I was too late.  She was swift to leave.  Through the rain I watched her quickly walk toward a subway entrance and disappear.

I didn’t go to the Tavern On The Green, breaking my date.  I quit my trading job the next morning.  I’d been a bachelor and wasn’t so materialistic, saving my earnings prudently.  My occasional girl friend complained I was a penny pincher.   My frugal character always ended our relationships as they expected me, a successful Wall Street broker, to swoon them in a lavish lifestyle.  I kept things simple coming from an impoverished childhood.

I cleared out my apartment of its furnishings in two days.  I packed a change of clothes and my laptop in a backpack.  I headed to Penn Station with no sense of where I would go.  Nothing would be planned, except I would continue to manage my financial investments online.  There was enough to build on to cover travel expenses.

I was consumed to find her.  That is all that mattered, even if it took a lifetime.

She was the only woman I wanted to be with, nothing else mattered until, at least if I found her again I had to know.

***********************************************************************************

Three years later, on a train in Hauteur Normandy, France, I peered out at the passing country side rolling past farms and fields.  My destination was Ande, a small hamlet on the Seine.  I had settled into pet sitting from a website post on the Internet,  mostly in France, having a free place to live in exchange to care for my client’s animals.

This client, an American ex-pat who had lived in Europe and Russia for twenty-some years was going to Quebec for a month to be with a new-found “online” lover.   She’d been widowed for five years.  We had talked on Skype for the initial interview.  It was customary and convenient for owners to see me and get a sense of my integrity.

Then, in the reflection of the window I saw her standing by my seat in the aisle. Time stopped.  I was back in the taxi cab when we met.

Bon jour.” She had a silly girlish grin on her face.

I studied her face, her profile, her figure draped in a colorful coat.  Her eyes fell upon me, wordlessly speaking, filling that empty place in my heart that had been there since I saw her leave.

My heart that had become a stone fortress since the last time we met.  Now it crumbled into dust in her presence.  That feeling that I had from the “touch of our hands” kept me locked in waiting till we met again.  I knew she held the key to my life.

“Hello,” I choked.  A lump in my throat.

She said down across from me.  I noticed there was no wedding ring.  She hadn’t changed.  Youthful looking much younger than her age.

Time It Was – The Taxi Cab

Manhattan. A city filled with vulnerabilities.  An autumn rain makes the cityscape look like a glossy black and white photo filled with puddles.  Standing on a sidewalk curb, a pretty young French woman looks to hail a cab. Traffic is on the edge of gridlock.  The sidewalk is filled with the odds and ends of pedistrians packed shoulder-to-shoulder under a river of rushing umbrellas.

A fire department ambulance struggles to part the traffic jam.  Its siren blares, the light bar flashes spinning red and white.  The traffic light  a block up malfunctions, flashing red.  The intersection becomes a jumbled mass of vehicles.  Horns blare impatience.  No one seems to listen.

Jostled from by-passers she struggles to keep her place near the curb.  She looks at her wrist watch. Three hours left to catch her flight to France from JFK airport.  Up on her tip-toes she sees a Yellow Cab inching its way in the bumper-to-bumper traffic.  She sprints toward it.

A young Wall Street broker sits in the backseat of that Yellow Cab.  Exhausted from a grueling weeks trading in a volatile market the rain makes him introspective.  The Occupy Wall Street protestors were making more sense each day, he thought to himself.  He is thirty-five.  For ten years he’s sat at a Wall Street trading desk.   Its Friday which means his usual date at the Tavern On The Green tonight.   The relationship was going stale after four months.  Determined, tonight he’d break it off.  She, a high-strung public relations executive, might toss the dinner wine in his face in defiance, but that’d be the worse of it.  He’d ask for his apartment key back, pay the bill and leave.

The French woman pushes her way through the crowded street.  She carries a small duffle-type canvas bag.  Homeland security had become so ridiculous in her mind, making people nearly strip to their underwear in some cases.  Travel light expedites your search and sometimes interrogation.

He glanced out the cab’s rain streaked window noticing her approaching, waving her hand to hail the cab. Her flower print summer dress is soaked.  Cabs are hard to get at this time of day.  He decided to do the right thing.

“Driver!  Let that woman share my fare,” he said, swinging open the rear door, signaling to her to get in out of the down pouring rain.