The Profitable Art and Science of Vibratrading Non-Directional Vibrational Trading Methodologies for Consistent Profits

by Lim, Mark Andrew

• ISBN13: 9780470828748
• ISBN10: 0470828749
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-08-30
• Publisher: Wiley

Summary

Author Mark Lim introduces his proprietary Vibratrading" system for equity traders and investors Vibratrading introduces a new and revolutionary perspective to trading and investing, with a powerful methodology to extract profit in every type of market environment. It is a non-directional methodology that will appeal greatly to the vast amount of directional traders who consistently struggle to keep from losing their trading account. It provides a better and indeed safer way to participate in the markets for consistent profits. You now have the unfair advantage.

Author Biography

Mark Andrew Lim graduated in Special Physics from King’s College London and was subsequently awarded the Bronwen Wood Memorial Prize in Technical Analysis by the Society of Technical Analysis (UK). His trading expertise includes stocks, CFDs, futures and options. Mark conducts a range of technical analysis and proprietary trading master classes covering intermediate to advanced profit extraction methodologies for both directional and non-directional trading.

Some of Mark’s proprietary trading methods include vibrational, bidirectional, reactional, formational, oscillational, exclusional and transformational. He is a contributing author for The Wiley Trading Guide II and can be reached at www.tradermasterclass.com.

Table of Contents

Acknowledgments	p. ix
Introduction	p. xi
Challenges I o Conventional Trading and Investing	p. 1
Directional vs. Non-Directional Methodology	p. 1
Problem of Maintaining Long-Term Consistent Positive Expectancy	p. 3
Predictive vs. Reactive Approaches to Risk in trading	p. 5
Trader Inactivity and Volatile Price Activity	p. 6
Subjectivity vs. Objectivity in Trading and Investing	p. 7
Filtering and Trade Signals	p. 9
Understanding the Basics of Order Entry	p. 13
Common Trading Terminology and Definitions	p. 13
Common Orders	p. 15
Entry Orders for Bounded Vibrational Trading	p. 17
The Objectives of Vibratrading	p. 19
Vibratrading as an Income Strategy	p. 20
Introduction to the Components of Vibratrading	p. 21
Main Components of Vibratrading	p. 24
Meaning of the SISO and SOSI Acronyms	p. 29
Basic Scaling Entries and Exits	p. 31
Controlling Risk in Vibratrading	p. 35
Types of Risk	p. 35
Risk Control Mechanisms	p. 36
The Mechanics of Equity-Based Price Action	p. 47
Equity-Based Calculations	p. 47
Market Value vs. Profit Potential	p. 48
Price Leverage Ratio (PLR)	p. 49
Money Leverage Ratio (MLR)	p. 53
Buying Leverage Ratio (BLR)	p. 53
Account Leverage Ratio (ALR)	p. 58
Calculating the Initial and Current Market Value	p. 62
The Mechanics of Securitization and Monetization	p. 63
Monetizing in Margin and Non-Margin Accounts	p. 65
Securitizing Profits and Risk Capital	p. 67
The Basic Principles of Price Action	p. 68
The Effects of Negative Spread Bias on Reward to Risk Ratio	p. 73
Hedged Price Action Principles	p. 79
The Principles of Boundedness	p. 83
Capital Boundedness	p. 86
Directional Boundedness	p. 92
Range Bbundedness	p. 94
Order Entry Boundedness	p. 97
The Mechanics and Dynamics of Vibratrading	p. 101
Vibrational Operations, Mechanisms, and Constructs	p. 102
The Scale Factor	p. 105
Capstone Mechanisms	p. 108
The Macrososi Vibrational Mechanism	p. 109
Macrosimo Mechanism (Upbuy - Upsell)	p. 114
Pyramidal-Based Vibrational Mechanisms	p. 121
Microsiso	p. 121
Interval Slip-Through	p. 125
Macrosiso	p. 129
Extracting Macrosiso Vibrational Profits	p. 134
The "Arbitrary" Vibrational Construct	p. 140
Upside Bounded Macrosiso and Microsiso	p. 144
Unbounded Upside Macrosiso Mechanism	p. 145
Unbounded Hedged Vibrational Constructs	p. 145
Diversification in Vibratrading	p. 147
Bounded Versus Unbounded Zero Test Level Event	p. 148
The Six Levels of Diversification	p. 150
Volatility Matching	p. 157
Historical Range Volatility (HRV)	p. 157
Event Trading (High Volatility Trading)	p. 158
Range Zoning (Medium to Low Volatility Trading)	p. 158
Putting It All Together, Finally!	p. 161
The Return Characteristics of Vibrational Constructs	p. 162
A Brief Guide to Understanding the Scale Analysis Tables	p. 162
Introduction to Vibradirectional Techniques	p. 172
Calculating Working and Running Capital within Vibrational Grids	p. 176
Free Swing with Constant Capital per Level with Type 1 (Roll to Break-Even)	p. 183
Gaps in the Grids	p. 187
The Balance Between Opportunity Cost and Profitability	p. 189
Free Styling across Multiple Levels without Risk Freeing	p. 198
Unbounded Bidirectional Profit Capture Constructs	p. 200
The "Big Hedge" Technique	p. 202
The "Small Hedge"	p. 203
The Upside Short Hedge	p. 204
Zero Cost Hedging Technique for "Loading the Matrix"	p. 205
More Constructs	p. 206
Exiting With Profit	p. 211
The Vibrational Vehicles	p. 213
Characteristics of Exchange Traded Funds (ETFs)	p. 214
Types of Risk Associated with ETFs	p. 215
Funds to Avoid In Vibrational Trading	p. 217
The Replicated ETF Portfolio	p. 222
Comparison with Other Trading Systems	p. 225
Vibratrading vs. Scale Trading	p. 225
Vibratrading vs. Dollar Cost Averaging	p. 225
Vibratrading vs. Value Averaging	p. 226
Vibratrading vs. Buy and Hold	p. 226
Vibratrading vs. Directional Trading	p. 226
Profiting from Non-Viterational Flatline Price Action	p. 227
The Basis for Non-Directionality	p. 227
Riskless Short Options Trades	p. 228
Using Short Options in Vibratrading	p. 228
Summary of Vibratrading	p. 229
The Two Rules of Vibratrading	p. 229
A Quick Recap	p. 230
Choosing a Vibratrading Construct	p. 234
The Importance of a Balanced Pyramidal Structure	p. 238
Conclusion	p. 239
Index	p. 241
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