A Game Of Inche
No matter how much math you use, the time spent on
development, the number of Ph.D’s on your payroll, the criteria you use; any
algorithm [and by default the rules you impose] will at some point go surfing
through the Banzai Pipeline. It’s a game of micro inches.
I thought I had laid out completely my “game plan” in prior
blogs, but as has been shown by my staff to me yesterday, I didn’t.
We first mark the weekly open [Monday] with a horizontal
line that is good for the week. From that price we add/subtract $5. So, if the
open is 1300, we have 1295 and 1305. If the market is in this zone we liquidate
all open positions, and do not initiate any new positions.
At the start of the week, new positions are initiated when the
market makes a new cross of the yellow/plum line past $6 on either side of the
open price. The reason I choose this value is to give a buffer from the $5 value.
Once we get into the week, new positions are taken when the
weekly range expands or when the appropriate buy/sell signal is given via the
yellow/plum line cross. Up and until Asia
proves to me that there is something there to watch and trade, I do not follow
the market during the Asian session. In addition, the first half of the
European session in gold is usually quiet, awaiting the open in New York.
Yesterday, the gold signals crossed [sell signal] right
around 1383 from the 1388 open. I didn’t take the signal because it wasn’t a
clean signal for me. The next sell signal came late in the day about 35 minutes
from the close; too late to really do anything.
Whenever there is an algorithm involved, there will always
be “grey moments” [The Ghost In The Machine] no matter where you draw the
proverbial line in the sand. If you choose $5, there will be days when it
breaks from $4.96; choose $6 and there will be times when it breaks from $5.90.
This
is one of the big reasons I have always refused to endorse an Expert Advisor
[EA] for trading. And these issues aren’t only limited to price;
they are just as valid in regards to time.
Not A Trading Model
So, for those of you who think I’m just sitting here
relaxing in the sand while the market trades, what I’m doing is simply
following the algorithm as best I can. Have patience, we will get our
opportunities.
One more thing I want to comment on today.
Over at Zero Hedge [ www.zerohedge.com
] we finally have confirmation that the BLS [Bureau of Lies & Statistics] made
up NFP numbers in October 2012 for President Chalky Gobbels. These
people are despicable.
What’s it going to take to make the Amerikan Sheeple see the
“handwriting on the wall”? What does it take to make you see that your wealth
is under attack and for you to get the hell out of “Dodge City” and protect yourself from these
robbers and thieves? The decline and fall of the U.S. right in
front of your eyes; proof every single day.
Have a great day everyone.
-vegas
P.S.
Since Sunday night, I’ve gotten a blizzard of emails in the
last 48 hours. I’m going through them one at a time and if you have written me
I will get to your email ASAP.
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