O'Reilly logo

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

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 12

Putting It All Together, Finally!

In this chapter, we shall consolidate all of the trading mechanisms and constructs into easily implementable trading plans. It would be particularly beneficial to first study the characteristics of various basic scaling constructs in terms of their performance, functionality, and interrelationship. We will briefly examine how the performance of the micro and macro vibrational returns vary with scale factoring, PLR, number of intervals, and share sizing. You will then be introduced to bounded as well as unbounded mechanisms and constructs, both vibrational and bidirectional in nature, whereupon you will learn to design pure bidirectional grids. Most importantly, always remember that all constructs must be capital bounded, but not all need be order entry bounded. This represents the minimum degree of boundedness to continue extracting vibrational and directional profits indefinitely. Capital boundedness means that the vibratrader will have sufficient, disposable, and timely capital to fund all current open longs, including all pre-planned downside constructs. Additionally, the methodology must also satisfy the Initial Entry Rule, which states that if the final account's equity is less than, or has the potential to be less than, the initial equity when price returns to the initial entry level, then the methodology is said to be unbounded.

Let us now examine the characteristics of vibrational returns under different scaling construct parameters. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required