Entropy – Energy & More


QUESTION: Hi Marty…as a long time reader and communicator of your work and with you, ive learnt a great deal since 2008/09 when i first picked up your typewriter written reports….however something has piqued my curiosity lately reading your blog posts.

1) Youve been talking alot lately about the “energy model’, i think alot of us are quite intrigued and curious about this. Could you perhaps elaborate more about this model, and for the more technically savvy folks, could you delve into a little more detail about what it measures and how it does this? I am certain this is not a simple price action oscillator.

2) You mentioned about a transverse wave, expansion and contraction in one  of your recent blog posts, compared to fixed waves of benchmarks. Is this transverse wave the ECM? or is there some other wave you are referring to? The long time readers and fans of your write ups would love to have you elaborate in some detail about your reference of the transverse wave in the markets.

Thank you




ANSWER: Long established clients know while I was a trader, I went through computer engineering in the good old days when you have to do both hardware and software. So I took those skills and applied them in trading. The boys on Wall Street only knew I had a physics background so they started higher people with those degrees. They failed to comprehend that writing a program is just learning how to read and write. You then have to have some knowledge of what you are going to write about.

I applied physics far beyond what most people would even do. My view was always I had no idea so lets just see what emerges. Approaching the markets as child open to learn rather than trying to prove a theory is a huge difference. The former you are opened-minded and latter you will learn nothing.

DECLSILV - MA-Waterfall

I realized as a trader, that for a model to hold up, I had to test it under all circumstances – not just back to 1971. Those who won Nobel Prizes like Black & Scholes never had the database to prove their formula would not meltdown in a panic. That is why Long-Term Capital Management collapsed in 1998.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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