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Darvas' How I Made $2,000,000 in the Stock Market. It was actually the best book to start with. Both sides of the trading equation (technical and fundamental) were touched on. With my engineering background, it didn't take me long to go with the underlying principle of technical analysis for possible trading success. I moved on to other technical books, such as Technical Analysis of Stocks and Commodities and Joe Granville's A Strategy of Daily Stock Market Timing. During the winter of 1977 I went to the Chicago Stacks (exchange libraries) after work, and painstakingly, by hand, I proved Granville's theory of balance volume, using all the Dow Jones stocks in the 1929 Wall Street Journal. |
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During 1983 I received a phone call from an individual (Allen Ko) who had read an article about me and was interested in some of my work. Over the course of about two years, Ko and I became good friends, and soon we codeveloped a system involving an adaptable volatility variable and a unique price pattern. Between the years of 1984 and 1987, Ko parlayed $25,000 into more than $2,000,000. I probably only made about $500,000 during that time. My discipline in trading was not as good as his. Sticking to a system was extremely hard, especially during the drawdown periods. |
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Neal: So what exactly is Dual Thrust? |
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Mike: Dual Thrust is a function of dynamic volatility and a unique price structured pattern which, when used collectively, gives inherent support and resistance levels in the market. We are looking for a breakout with either of these points and treat the signals as a stop and reversal methodology. The system appears to work rather well on the S&P intraday charts using time periods of 30 minutes or more. |
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Neal: Could a pit trader use it? |
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Mike: A pit trader could possibly use it if he had a computer on the side using, say, one- to two-minute bars. This would only be |
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