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The Profitable Art and Science of Vibratrading: Non-Directional Vibrational Trading Methodologies for Consistent Profits by MARK ANDREW LIM

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Chapter 8

The Mechanics and Dynamics of Vibratrading

In the following pages, you will learn about the various bounded and unbounded vibrational and trend mechanisms. But I feel it is extremely important to first put everything into perspective by showing you where and how the mechanisms fit into the larger vibrational constructs. After getting acquainted with the overall purpose of the various mechanisms, we may then delve into the workings and construction of each of them.

The objective of building a vibrational construct is to extract oscillational as well as directional profits from the markets. Though the directional mechanisms are not truly bounded, we still introduce some of these techniques so that the vibrational trader may profit from trending markets as well.

Having said that, we strive for the ultimate profit extraction methodology, one that profits whether the market rises, falls, or flatlines. This non-directionality arises from two mechanisms:

1. Collection of options premiums from the selling of Covered Calls and Naked Short Put Options within the vibrational construct,

2. The oscillation profits generated from the various Micro and Macro SISO/SOSI mechanisms.

Vibrational Operations, Mechanisms, and Constructs

Vibrational mechanisms cover the most basic elements of profit extraction via price oscillations. They are comprised of simple entry and exit scaling operators. There are eight basic scaling operations—long and short:

  • Downbuys
  • Upsells
  • Upbuys
  • Downsells. ...

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