World Awaits Update
To those who do not have the algorithm in their possession, and who know we were long all of last week with good result, it is only natural for them to conclude that we would come into today’s action with a similar long bias.
Well, they would be wrong.
Mid to late Friday, and in the Asian session earlier today, the algorithm gave a triple confirmation top in our longer term indicator. It came within a few hours of giving a fourth confirmation, but that never materialized as gold sold off.
Since November 22 at 4:00 AM [Chicago time] our longer term indicator has been in buy mode. That ended last night in the Asian session at 8:00 PM [Chicago time]. Those with the algo on their screens can clearly see these two events. This created, and then ended, a long bias to initiate new long positions when warranted. Now, in the manual and in Appendix III, I clearly state when this longer indicator is no longer in buy mode. Those conditions were hit on Friday and today, not once, twice, but three times.
As we started trading today [midnight Chicago time] I received many emails from new algo traders wanting to confirm with me that in fact “buy mode” was off. Since we are not in either buy mode or sell mode, we simply wait for the algo to tell us whether to buy or sell. At the moment we are neutral; neither buying or selling. Sitting.
For those who have the algorithm on their computer screens, you can see the various buy and sell signals on your screen and the somewhat chaotic nature of today’s trade. This is further confirmation of the algorithm’s power in keeping you out of trouble. It’s telling you that, for today, trading is not only tricky but risky.
Now, I’m sure that in their haste to trade, some very new algo traders still bought the signals from this morning that led to early small losses. Later, a rally would have made you money, so even if you screwed up, you still would have profited on the day from the buy signals. However, even if you somehow lost money, which I don’t see how you could, consider it small tuition. You have to be able to follow the algorithm rules. RTFM.
I also realize that some newer algo traders post their results on other websites, in order to help other traders who have not yet seen the light. While this is noble, and I have no problem with it, when they make mistakes or read the signals wrong, there is a possibility some people will get the wrong impression.
I want to give a BIG shout out to all my friends over at TF Metals Report. In all sincerity, thanks for directing traffic to my site, as well as the DOZENS of members who have opened accounts and now have “The Vegas BFSG Algorithm” in their hands. I couldn’t have done it without you.
Only In Their Dreams
However, among any group you have a small minority of trolls (and you know who you are) that just can’t play nice with the other kids in the sandbox. You can never please them, no matter what you do. It’s their sandbox, and you can’t have any sand.
Well fellas, I’m sure you were up late last night creating new voodoo incantations or praying that the algorithm would lose money today, thereby inciting mass hysteria. While the algorithm does lose money on some trading days [it has too, otherwise it would be perfect, and that is impossible], I’m sorry today isn’t one of them. Dream it for some other day.
In the spirit of helping you though, may I suggest kicking the dog from a different angle, create some new beef jerky recipes, and try sticking some pins in that blow-up doll you have in the closet. I’m sure one of these, if not all, may just be the combination of events that cause the algorithm to lose money and set your hearts fluttering.
This Is What Always Happens
But seriously, when you eventually want the algorithm, you really don’t have to have your cousin sign up so you can see it. I’m here ready and willing to help everyone.
Today’s Action & Wrap Up
As I stated above, the algorithm is neutral awaiting a buy or sell signal. So, no trades resulting in $ 0 / oz.
In other markets though, the algorithm has done a very good job of producing profits. Financial markets today have decoupled, and nice gains in stock indices and oil have produced good profits. One of my favorite currency pairs AUDUSD has also done well.
Have a good day everyone.