Nested cycle scale-in with rewritten stops

What the 2012 case recorded

The 2012 case examined a browser-only cycle application that measured multiple price cycles. Each setup was issued with an entry, a stop-loss, and a profit-target instruction.

Those measurements were applied to NQ, YM, and ES futures and to EUR/USD, EUR/GBP, GBP/USD, AUD/USD, USD/JPY, and EUR/JPY. The six fixed intervals were 40-day, 20-day, five-day, two-day, one-day, and five-hour.

How lows were stacked on the chart

Completed cycle lows were shown as stacked marks to the left of the live bar. Projected lows were shown as stacked marks to the right. More coincident marks were treated as stronger turning-point confirmation.

Tutorial filters and interval risk

Tutorial rules favored aligning with the higher-interval trend. Overlapping opposite cycle-target zones were treated as indecisive. The same tutorials warned that early-cycle entries can produce premature stop-outs.

Signal selection was limited to the top two-thirds of the listed setups and to a minimum 3-to-1 profit-to-risk-ratio. The underlying cycle literature was noted as using a 2-to-1 floor. Future-line-of-demarcation confirmations were ranked above valid-trendline signals.

Suggested maximum equity risk per trade declined with the interval: 2% on the 40-day, 1.2% on the 20-day, 0.8% on the five-day, 0.6% on the two-day, 0.4% on the one-day, and 0.3% on the five-hour.

A 40-day long with a rewritten stop

The 40-day equity-index long plan specified a least-aggressive buy at 1319.25, a stop at 1304.75, and a target at 1372.52. The plan listed 14.50 points of risk and a 3.7-to-1 profit-to-risk-ratio. Confirmation was a future-line-of-demarcation of a 10-day cycle. Futures prices were mapped to the related ETF by a factor of about 10.

After the paper buy-stop filled, a sell-stop was placed immediately. Later cycle-chart refreshes rewrote both the stop and the target, including a stop of 1295.25 and a target of 1349.35. The loss bound remained explicit through the hold.

Scale-in when the longer low is overdue

When a longer-interval low was overdue but shorter intervals had already turned, the described procedure was to add size as each shorter-interval buy-stop triggered, rather than committing full size on the first signal.

Editorial: that procedure is the scale-in. Cycle-nesting is the alignment of completed or overdue lows across shorter and longer intervals so an entry is staged only when more than one interval agrees.