After some analysis and discussion with the staff, as well as input from many readers of the blog, I decided Monday night that it is indeed time to move exclusively back into the gold market.
We all know this market is manipulated by The Fed [and the BIS on behalf of The Fed] and my main trading concern over these last months has been not only how to profit from the manipulation, but how to avoid getting hurt from being on the wrong side at the wrong time.
I feel comfortable that the long term algo achieves these 2 main priorities. Our threshold for positions is approximately $5 from the Monday open. I have linked the VBB Gold mq4 file in the “downloads section” for your convenience. If you have any problems getting any of the mq4 files from www.4shared.com just email me and I will send any/all files to you.
I want to emphasize that WTI crude oil and EURAUD are the other 2 markets that are very good to trade, and I have no problem recommending them to the public. I feel that gold [specifically XAUUSD] fits the logic and trading philosophy of the long term algo better than the other markets.
I prefer XAUUSD @ Forex-Metal over futures contracts because of flexibility. Trading is done in 10 OZ increments instead of 100 OZ contracts, and the spread is usually between $0.40 - $0.50. Margin is also smaller [with no commissions], therefore allowing bigger positions when warranted.
In the days ahead, I’ll have more information on strategies [lose with 1 lots, win with multiple lots], Excel spreadsheet analysis with details, and appropriate leverage. The final analysis is pretty simple; we can profit from the manipulation and take advantage of the greater volatility that is in this market. When the market gets a little ‘crazy” [usually on the downside], the algo does a fantastic job in positioning us for the move. The profit potential is enormous and more than any market traded today, if we are positioned correctly, you simply can’t find a better trading instrument with approximate $0.40 - $0.50 spreads.
To help you through the logic and philosophy of the "Long Term -vegas Big Bang Algorithm", I created PDF's for 3 of my favorite trading/finance books that provide excellent background information that can help you. They are "Fooled by Randomness", The Black Swan" [both by Taleb], and finally "Tunnel Through The Air" by W.D. Gann. They are all excellent reads and will give you a lot to think about for a very long time.
If you would like any/all of these books, simply send me an email and I will send.
Have a great day everyone.
I'm still working on the prior weeks backlog of emails. If I haven't answered you yet, my response will be there shortly. I have about 120 emails to work through, and I answer them all with care and thought. Thanks for your patience.