A Marshall Wave book is assembled one confirmed stance at a time

What the book holds

The archive specifies a completed Marshall Wave book as 36 commodities. The book stays fully invested, long or short with the prevailing wave bias, in every contract.

Trend following, in this workflow, is a fully invested long-or-short procedure. It stays with the coded Marshall Wave bias across the diversified commodity book and reverses only after a later confirmed bias change.

Coding bias from swing structure

A primary entry opportunity is the first confirmed chance to take a stance in a contract after a long-term directional-bias change has been coded from its swing structure. After that confirmation, the stance is held without a conventional close stop until the bias changes again.

Bias is read from each contract’s four-week reference, the 20-session high or low. That extreme is used to confirm an existing up or down stance as highs and lows are counted and coded through the wave.

The coding separates Markets from Trends. Markets are the sequence of inner legs contained inside the broader Marshall Wave trend. That outer trend sets the only allowed trade direction.

Printing a four-week low during an existing up wave does not by itself flip the bias. A flip is indicated only if that level occurs below the prior reaction’s coded low. Any position change still waits for confirmation.

Confirming a flip or first entry

Confirmation uses a Positioning Critical Zone bounded by the close that suggested the flip and the next session’s 30-minute opening range. A long is confirmed only by trade above the zone. A short is confirmed only by trade below it.

Good-till-canceled reverse stops are placed just outside that zone. If price never exceeds the zone, the prior stance is kept.

Trailing marks after a confirmed flip

After a confirmed flip, later reactions define trailing bias-change decision prices. Those prices only roughly mark risk. The live reverse price is not known until the next confirmed bias change produces a new stop.

Capital rules and how slowly the book fills

Stated capital rules include using one-third of capital for margin when fewer than eight commodities are held. The workflow also closes after a one-third loss of total capital, and it withdraws only after closed-trade profit exceeds original capital.

Units are added only from net closed-trade profits through secondary entry opportunities, rather than by pyramiding original risk capital. A secondary entry opportunity is a later add in an already identified trend.

Book construction is described as slow. A model book was still incomplete after 80 weeks. One modified book took 33 weeks to hold 18 commodities. Primary entries across 36 contracts can take up to a year and a half, or 30 to 40 weeks if secondary entries are used.