Acknowledgments ix
Introduction xi
CHAPTER 1 Challenges to Conventional Trading and Investing 1
Directional vs. Non-Directional Methodology 1
Problem of Maintaining Long-Term Consistent Positive Expectancy 3
Predictive vs. Reactive Approaches to Risk in Trading 5
Trader Inactivity and Volatile Price Activity 6
Subjectivity vs. Objectivity in Trading and Investing 7
Filtering and Trade Signals 9
CHAPTER 2 Understanding the Basics of Order Entry 13
Common Trading Terminology and Definitions 13
Common Orders 15
Entry Orders for Bounded Vibrational Trading 17
CHAPTER 3 The Objectives of Vibratrading 19
Vibratrading as an Income Strategy 20
Introduction to the Components of Vibratrading 21
Main Components of Vibratrading 24
Meaning of the SISO and SOSI Acronyms 29
Basic Scaling Entries and Exits 31
CHAPTER 4 Controlling Risk in Vibratrading 35
Types of Risk 35
Risk Control Mechanisms 36
CHAPTER 5 The Mechanics of Equity-Based Price Action 47
Equity-Based Calculations 47
Market Value vs. Profit Potential 48
Price Leverage Ratio (PLR) 49
Money Leverage Ratio (MLR) 53
Buying Leverage Ratio (BLR) 53
Account Leverage Ratio (ALR) 58
Calculating the Initial and Current Market Value 62
CHAPTER 6 The Mechanics of Securitization and Monetization 63
Monetizing in Margin and Non-Margin Accounts 65
Securitizing Profits and Risk Capital 67
The Basic Principles of Price Action 68
The Effects of Negative Spread Bias on Reward to Risk Ratio 73
Hedged Price Action Principles 79
CHAPTER 7 The Principles of Boundedness 83
Capital Boundedness 86
Directional Boundedness 92
Range Boundedness 94
Order Entry Boundedness 97
CHAPTER 8 The Mechanics and Dynamics of Vibratrading 101
Vibrational Operations, Mechanisms, and Constructs 102
The Scale Factor 105
Capstone Mechanisms 108
The Macrososi Vibrational Mechanism 109
Macrosimo Mechanism (Upbuy - Upsell) 114
CHAPTER 9 Pyramidal-Based Vibrational Mechanisms 121
Microsiso 121
Interval Slip-Through 125
Macrosiso 129
Extracting Macrosiso Vibrational Profits 134
The ‘‘Arbitrary’’ Vibrational Construct 140
Upside Bounded Macrosiso and Microsiso 144
Unbounded Upside Macrosiso Mechanism 145
Unbounded Hedged Vibrational Constructs 145
CHAPTER 10 Diversification in Vibratrading 147
Bounded Versus Unbounded Zero Test Level Event 148
The Six Levels of Diversification 150
CHAPTER 11 Volatility Matching 157
Historical Range Volatility (HRV) 157
Event Trading (High Volatility Trading) 158
Range Zoning (Medium to Low Volatility Trading) 158
CHAPTER 12 Putting It All Together, Finally! 161
The Return Characteristics of Vibrational Constructs 162
A Brief Guide to Understanding the Scale Analysis Tables 162
Introduction to Vibradirectional Techniques 172
Calculating Working and Running Capital
within Vibrational Grids 176
Free Swing with Constant Capital per Level with Type 1
(Roll to Break-Even) 183
Gaps in the Grids 187
The Balance Between Opportunity Cost and Profitability 189
Free Styling across Multiple Levels without Risk Freeing 198
Unbounded Bidirectional Profit Capture Constructs 200
The "Big Hedge" Technique 202
The "Small Hedge" 203
The Upside Short Hedge 204
Zero Cost Hedging Technique for "Loading the Matrix" 205
More Constructs 206
Exiting With Profit 211
CHAPTER 13 The Vibrational Vehicles 213
Characteristics of Exchange Traded Funds (ETFs) 214
Types of Risk Associated with ETFs 215
Funds to Avoid In Vibrational Trading 217
The Replicated ETF Portfolio 222
CHAPTER 14 Comparison with Other Trading Systems 225
Vibratrading vs. Scale Trading 225
Vibratrading vs. Dollar Cost Averaging 225
Vibratrading vs. Value Averaging 226
Vibratrading vs. Buy and Hold 226
Vibratrading vs. Directional Trading 226
CHAPTER 15 Profiting from Non-Vibrational Flatline Price Action 227
The Basis for Non-Directionality 227
Riskless Short Options Trades 228
Using Short Options in Vibratrading 228
CHAPTER 16 Summary of Vibratrading 229
The Two Rules of Vibratrading 229
A Quick Recap 230
Choosing a Vibratrading Construct 234
The Importance of a Balanced Pyramidal Structure 238
Conclusion 239
Index 241
