Some time ago, I spent 2 months just studying HSI chart (1987-2008). I note down observations into revisions. It was System Z revision 3.3. Following is the updated version for Project B.
System Z 6.1
TECHNICAL PRINCIPLES
Zeroth Law - rule of buy resistance & sell support
Acceptance - trends is testing and establishing of boundaries
Consensus - huge tradable moves occur after consensus in price
Timeframe - trade in the direction of the next bigger timeframe
Symmetry - suggest potential support levels after trend reversal
Pattern - trading edge through probability of entry & exit points
Failure - every method is set to fail no method is always profitable
TRADING RULES
Public sustain strong trends
Patient entries decisive exits
Trade along with major trend
Have a cutloss and stick to it
Let profits run when running
Price never need a reason
Never ever average down
RISK MANAGEMENT
Trend-Following
Gambler's Fallacy
Sunken Cost Effect
Prospect Theory
Babe Ruth Effect
Kelly Formula
Two-Six Rule
