Friday, February 27, 2015

ESThunder Performance Notes

ESThunder performance curve has a certain shape due to the fact that it is a play on Wing Fulcrums    Wing Fulcrums are
1) spots where big moves can happen there;
2) but sometimes these Wing Fulcrums turn into zones of pain - compression zones with weak or no trends.  But after some time the market roars out of that zone, extremely explosive.  

ESThunder in keeping the philosophy that over complication for automation is never a good thing, tries to keep things as simple as possible aggressively entering every Wing Fulcrum opportunity betting that because the market never does any one thing always but will sometimes take off from Wing Fulcrums but other times markets will simply revolve "meaninglessly" around the Fulcrum actually not that meaningless because incredible energy is being built there for subsequent explosive action

This underlying fact about Wing Fulcrums theory leads to an expected performance graph that is sort of like an inverted "Z"   Moving horizontally and then vertically; currently as of 02/26 very clearly ESThunder is an a horizontal mode - and not surprisingly one notices the market in the past week consolidating around the current Fulcrum 2107.25 - so absolutely ESThunder would be losing money here.    ESThunder performance actually sort of mirrors the underlying market conditions and just as one might expect that night follows day ESThunder will at some stage in the future move vertically with the market - because the market itself moves vertically or horizontally.   Thus ESThunder performance graph can by itself serve as a trading indicator is rather remarkable and next generation systems may try to create "meta-systems" that take guidance from whether ESThunder is making or losing money.  

For folks who want to this type of deep sychrony with the market ESThunder is a good bet but requires a bit of patience to sit through the "horizontal phase"   Anyways so goes the theory, have a great weekend folks











        

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