Before I get deeper into this review, I thought it was proper to provide the good-faith disclosure that I’ve grown to know and respect Eric Penicka as an Internet friend. Reviewing a friend’s work can potentially present a conflict of interests. As an editor and reviewer of The Perfect Storm, please know that I’m not being compensated (beyond a copy of the book) for this review and edit work. I have no financial stake in any sales proceeds. I’m in it for the trading knowledge. That said…
The Institute of Cosmological Economics (www.cosmoeconomics.com) offers us opportunities to share in the collective experience of centuries of market research from among the best market minds on the planet. Their offerings have exposed me to a number of authors that I consider to be much deeper thinkers than myself. Eric Penicka and Ken Adkins are among of them. With their book, “The Perfect Storm”, they have done the near “impossible”. In fact, the book has enticed me to do something that I previously thought would likely never happen… I’ve started taking occasional day-trades using intraday market charts.
After 30+ years of my own market research, I had come to the conclusion that some people can do well with day-trading, but I was not one of them. I didn’t want to stare at a screen to trade all day. I thought making accurate predictions for the intraday market turns might not be possible. I had never found success with day-trading. I focused on weekly and monthly charts to pursue the longer trends while I ignored intraday market gyrations. I could make arguments that Mr. Gann instructed me to do that too.
I thought most day-traders couldn’t see the forest for the trees, so to speak. After reading “The Perfect Storm”, I see that maybe the successful day-trader can find a focus on specific valuable “trees” and think a little less about the forest. In other words, I’ve had to change (or open) my mind. I believe W.D. Gann said that a person that couldn’t change their mind would soon have no change to mind.
Mr. Penicka exhibited a confidence about day-trading topics that was new to me. Before I read the book, I had an opportunity to ask him pointed questions. He was quick to offer examples. His examples were predicting the timing and polarity of market turns on small time frames under 10-minute bars. What really surprised me most was that he presented predictions for the NEXT WEEK and not a past date/time. It is difficult to cherry-pick results from future prognostications! He told me he could produce the predictions months or even years in advance. He had my attention.
His initial predictions came and went. I marveled at how many of them had predicted intraday trend changes. It wasn’t perfect, but it was still arguably amazing to me. I wanted to see more and began an increasingly interested review of the book.
“The Perfect Storm” places much of its focus on forces that act upon the Earth, its inhabitants, and markets. The core material works at predicting the intraday timing and likely polarity of many intraday swing extremes. As you might suspect, Mr. Penicka & Mr. Adkins refine their odds with multiple studies. We never know for sure what the market will do, but it does tend to turn near the times “when it should turn”.
I want to make it very clear that the techniques won’t give you perfect foreknowledge. Now that months have come and gone, I’ve seen weeks that were not as impressive as the first. The “road map” can occasionally invert or just be plain wrong. That is the reality with any predictive market technique. However, I have also seen many more wonderful predictions.
I was also pleased to find new views into market mathematics/geometry that I’ve not previously seen. If you’ve studied the work of Sean Erikson and/or Alexander Straker, you have had different views into some similar topics. My personal trading plans are slowly evolving to use several of these wonderful techniques in unison. Doing that in combination with wise trading skills (like trading with the larger trends and practicing strong risk management) almost assures long-term trading success. It is work, but it can be very rewarding work. You will rarely succeed with laziness.
On my quest, I’ve been down all types of “rabbit holes”. Those that seemed to provide the best value to me have usually been mathematical. There are immutable laws whereby there is little dispute or interpretation. For example, you can calculate where the moon will have its eclipses decades in advance. Eclipses will indeed occur on the calculated dates. Predicting eclipses doesn’t make you a prophet as much as a knower of the proper math.
Similarly, no matter how you attempt to pervert the mathematics, Pi will always be involved with circles while squares and triangles will also always have specific characteristics. Astronomy, Mathematics, and Geometry don’t tend to lie. Mr. Gann pointed to that fact throughout his books and courses.
Now that I better understand what Mr. Penicka & Mr. Adkins are doing, I see that they’re not picking random times for trades. They’re picking mathematical or natural times that meet the criteria for a strong history of intraday trend changes. If you don’t believe it, my understand-ing is that these gentlemen plan to offer an on-line trading room where they’ll be providing their signals and trading. That won’t be trading advice, and you’ll be responsible for your own trading actions, but we might have a chance to watch and maybe learn in a live forum.
While I’ve admittedly had minimal experience day-trading or with the tools involved, my skepticism has melted away. Still, I understand that I’m a novice and have much more experience to gain. Accordingly, I will be working to develop this new skillset.
Don’t think for a second that I’m ditching my old-fashioned, longer-term Gann work. Quite the contrary. Now, I see that there is great worth in taking short-term trades that agree with the direction of longer-term trends. The different disciplines are synergistic.
I have also been pleased to see how wonderfully a lot of Mr. Gann’s concepts work on the intraday charts. Form reading skills are of value in every timeframe. On a one-minute chart, patterns are the same fractals, and retracements still prefer harmonic numbers. Old highs become future lows and old lows become future highs. It’s Gann 101 but the situations happen much more quickly than they do on a monthly chart!
Philosophically, I’ve been forced to consider that maybe Mr. Gann wasn’t just a master of “reading the ticker”. Maybe he also knew the time of his setups and looked at price in hopes of time and price “squaring” when his times came. He repeatedly indicated that time was more important than price. Maybe he understood that day-traders don’t have to watch a screen all day. They can watch a few times per day or even a few times per week. They can pick and choose when they think the odds are higher to find a successful trade entry/exit. Maybe wise day-traders operate in accordance with natural law! I believe Mr. Penicka & Mr. Adkins are helping to show me that it is indeed possible!
Gordon Roberts, February 2021
For more information on The Perfect Storm go to Cosmoeconomics.com
The book includes Excel based software that does all the calculations.
www.Perfectstormtrading.com is the authors website. Our website explains the features of the trading tools in detail and has further additional chart examples.
The Ninjatrader indicators can be leased through there. The indicators may be made available in other platforms in the future.
A day trading chat room will soon be offered to the public where we can explain the likely market activity for the day and key setup times with our charts on display.
We will also point out any major swing dates coming that week.
For videos of the indicators and what they can do, go to The Perfect Storm YouTube Channel.
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350 Pages
1st Edition
£5,500.00 (Book + Software)
Discount Price: £3,495.00 EQUINOX SPECIAL! The Perfect Storm uses Vedic Astrology to project a time map of market action in the S&P500 on an Intraday Basis. This course and the accompanying software will automatically identify these swing zones for each day, providing traders with the required time windows to capture them. After much study of these Vedic techniques applied to horse racing prediction, as presented in The Clairvoyant’s Window, Penicka and Adkins brought the results of that work to the financial markets. Their intention in this course is to identify and trade the two strongest swings in the intraday market on a daily basis, one up swing, one down swing. This is THE BEST short term timing system that we have available. It will allow traders to place very tight stops while capturing the 2 highest probability swings each day.
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