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Concept Trading Strategy with Gravity and Orbits - Research project.

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How to turn this odd old idea from 2008 into a practical strategy?

Tidying up my sitemap in 2023 I stumbled upon this old page and decided it was worth looking at again.

 


The mysterious power of Gravity holds the earth in orbit around the sun, and holds the moon in orbit around the earth.

Although perhaps its not obvious to most of us, the sun is also moving around the galaxy in what we call the milky way.... All very dynamic isn't it.


Gravity on 3 scales


Albert Einstein and Stephen Hawking both confess to not understanding gravity. If they didn't understand it, then what chance do the rest of us have?


Some formulas exist for computing gravitational pull effects, other formulas exist to compute acceleration, deceleration and momentum etc.

So perhaps one can compute a model without actually understanding the dynamic physics of it all....



So what if these formulas get applied to the stock market? Could it work? Could it be true that a price breakout can be compared to a moon that somehow escapes the

 gravitational pull of its mother planet?

A long time ago, I had this crazy idea, and at various points in time I coded up some models to see if the theory could be coded and thus proven.

I have often observed on charts the strange phenomenon of prices getting stuck in ranges, being set free to run and run, oscillating wildly up and down, and behaving

 without any pattern in a truly random manner.



First of all one has to figure out where the sun is located on a vertical axis, where would it be?

Could it be the point of most volume or the point of control as define in market profile terminology?

Could it also be true that the price action is orbiting around this point with set boundaries?

My theory is that these are true, and the price is not going anywhere much unless the sun itself moves, or the earth slips out of orbit.

Both of these points require something to happen first. Such as large amounts of volumes occurring away from the sun area.



So lets look at a scenario......Consider the following.


Orbit


The point of control is shifting in a rising trend upwards ( The sun is rising in a curved arc )

The earth is in orbit around the sun ( Prices are fluctuating around the "sun" or the point of control )

The moon is in orbit around the earth ( "Noise" is fluctuating prices on a smaller scale around the "earth" )



Rules that appear from the above considerations....



The earth cannot go far from the sun unless it slips out of orbit ( Price ranges and boundaries can be set around the "sun" )

The moon cannot go far from the earth unless it slips out of orbit ( Smaller price ranges and boundaries can be set around the "earth" )



Questions arising from the above considerations....



What would be required for the earth to slip out of the suns orbit?

What would be required for the moon to slip out of the earths orbit?



Answers arising from the above questions....




High momentum at the correct phase in orbit, can cause a sling-shot effect to propel something out of its orbit

In the same sense as the lunar module fires its rockets at the correct time to leave the moons pull and head back to earth

The sun or earth could disintegrate therefore losing gravitational pull ( a much rarer phenomenon )





Enron slips out of orbit

Diagram of phases below

Diagram shows how the phase of orbit cycles can be used to determine high and low points  ( 90 and 270 degrees )

as well as speed maximum and minimum (0, 180 and 360 are maximum, 90 and 270 are zero speed minimum )



Enron slips out of orbit


Some signals it generated but I dont like how it missed the last top.


The concept of a stop loss does not seem to be in keeping with the theme of gravity


Enron slips out of orbit



Research ideas (procedures that must be converted to computer code)


Sun

First and foremost the position of the "sun" must be calculated

The "gravitational pull" of the sun must be calculated

The upper and lower points at which the earth can free itself from the suns gravity must be calculated

The gravitational forces of the sun at each relevant distance from it

Forces ( momentum, acceleration, deceleration, gravity hold ) required to slingshot the earth out of orbit

The previous positions of the path of the sun at regular sampling intervals ( to compute next position )


Earth

The position of the earth

The previous positions of the path of the earth at regular sampling intervals ( to compute next position )

The cycle speed of the earths orbit from 90 degrees (top point) to 270 degree (low point) measured in bars. ( how many bars to do one orbit )

The current phase of the cycle of the earth, measured in degrees ( required to compute the extreme points )

The gravitational pull of the earth

The upper and lower points at which the moon can free itself from the earths gravity pull.

Forces ( momentum, acceleration, deceleration, gravity hold ) required to slingshot the earth out of orbit


Moon

The position of the moon

The previous positions of the path of the earth at regular sampling intervals ( to compute next position )

The cycle speed of the moons orbit from 90 degrees (top point) to 270 degree (low point) measured in bars. ( how many bars to do one orbit )

The current phase of the cycle of the moon, measured in degrees ( required to compute the extreme points )

The upper and lower points at which the moon can free itself from the earths gravity pull.

Forces ( momentum, acceleration, deceleration, gravity hold ) required to slingshot the earth out of orbit





Enron slips out of orbit






FAQ
 




Have you tried using the Value area (VA) from market profile (MP) concepts, as a way to compute the position of the sun?

Yes, that as well as the MP "point of control" has already been tried, also VWAP and PLA combinations of these. The key to this part as I define it above is that the sun must move smoothly in an arc, or else the theory is refuted.

As a result of this very important point, the calculation is made from a blend of factors which have been given boundaries to direction. Any sudden movement of the sun is not allowed, and large price swings must be justified by movement of the earth in orbit or the earth leaving orbit.




When does the Precision Gravity system become available for sale, I have been using your Pi-Osc with good results.

It could be a while.... but anyone who is interested, can drop me a mail to get progress reports



I have some code to measure cycles if you are interested?

That maybe worth looking at, sure you can send it on.

I have been experimenting with some code which I got from John Ehlers who is the Worlds No1 cycle expert.

Some of his code has been implanted in the right places.

Likely I will be asking him for some help as his maths knowledge is world class.






This idea seems pretty crazy and ridiculous to me, I don't think there is a chance in hell it will work

You could be right, but you could also be wrong. See quote below.



Far better is it to dare mighty things, to win glorious triumphs, even though checked by failure... than to rank with those poor spirits who neither enjoy nor suffer much,

 because they live in a grey twilight that knows not victory nor defeat.

Or the longer version

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better.

The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly;

who errs and comes short again and again; because there is not effort without error and shortcomings;

but who does actually strive to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end

the triumph of high achievement and who at the worst, if he fails, at least he fails while daring greatly.

So that his place shall never be with those cold and timid souls who know neither victory nor defeat.

Theodore Roosevelt





I agree with Roosevelt, critics are pretty useless to all, they don't ever achieve anything worthwhile, but just attack the mistakes others make.

Your model seems interesting but very complex to compute with so many factors I think.

But a good research project, good luck with it. How is it coming along? Can you send the code to me?


Thanks, it sure is complex. The initial results are encouraging. I am waiting for the algorithm for phasor calculations from John.

Sorry no code for sale yet. Its a big job and some of my quants are busy with other things.

I like critics, when they attack me it tells me I am annoying them for doing things they can't do or are too timid to try.

This tells me I am doing the right thing. Criticism and insults are actually compliments if you think about it.




Looks good in the photo Roger, how much longer do you think it will be?

The initial results are encouraging, 72% of the FT-SE100 stocks tested made a profit, the problem is there are too many variables in the code which I need to freeze, and

 testing it all takes a lot of time.






Has your critical reader seen that screen shot?

I have not heard from him.

The proverb I like is this one. To escape criticism, say nothing, do nothing, be nothing.




 
 
 

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Precision Trading Systems was founded in 2006 providing high quality indicators and trading systems for a wide range of markets and experience.

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