Before This He Tried To Trade FX
Few things in life really prepare you for a career trading
FX; all your fancy schooling and upbringing mean absolutely nothing. Money
talks; well, you know the rest. Dealing with disappointment and failure [not
from a money standpoint, but from the market “not behaving”] on a constant
basis can have a negative cumulative effect on your life if you don’t prepare yourself
properly.
Now that I’m “wired in” to the FX Twitter universe, how many
were calling for USDJPY to scream lower today, and by default the Yen crosses
would get smashed and the carry trade traders would suffer horrendous losses?
“Ummmm, excuse me,
liftoff in GBPJPY in 5…4…3…2…”
Once again, the “Long Term –vegas Big Bang Algorithm” should
have kept you on the sidelines [in GBPJPY] most of the day; in other words, keep
you out of trouble! How many of you couldn’t wait to sell GBPJPY
today on the rally? “It’s easy money.” [There
is no such thing by the way.] For the most part, the algorithm never gave the
sell signal after about 8 A.M. [Chicago
time]; it spent the next 7 hours going straight up.
As the sword swallower can attest, spending too much time
worrying about one side of the sharp sword can leave you vulnerable to the
other side. There is no such thing as “ a comfortable trade” in FX.
I have updated the “-vegas Scalper Algorithm” and the new
and revised MQ4 file can be downloaded for free in the downloads section here
on the blog. It is important you use this latest version, as it will give
superior results versus the previous version; as always, if you prefer, email
me at vegasalgo@yahoo.com and I will
send it to you if you don’t want to use 4shared.com
One thing is clear from the last couple of days; scalping
at C2 will not work. Here’s why; I made simultaneous trades of 10K
at C2 and Assets FX on Monday, buying GBPJPY off a buy signal from the “-vegas
Scalper Algorithm” [previous version, not the new one]. Likewise, I liquidated
at the same time; I made 6.6 pips [after a $0.26 commission] at Assets FX
[where the spread was 1 pip and change], and I made 3 pips at C2, where only
God knows what brokerage house they used for the quote and what the spread was
[I’m guessing it was about 5 pips]. This is over a 100% difference.
If you made 2 trades like this every trading day over the entire
year with a 1 lot [100K base currency], you would be handing the brokerage house
approximately $17,000!!
Most of the time, regardless the session, the crosses with
the best spreads are 1) EURJPY, 2) EURAUD, and 3) GBPJPY. EURJPY is usually
lower than 1 pip, while the other two are between 0.5 – 1.5 pips at Assets FX.
What I plan on doing is using C2 for the “Long Term –vegas
Big Bang Algorithm”, and posting each month the results from an account at
Assets FX where I threw $1,000 bucks into an account and will trade it using
the “-vegas Scalper Algorithm”. Of course, I will keep a running daily total of
the Scalper Algorithm, but will make available to the public the end of month
records so anyone can verify the results.
I have had some talks with Assets FX about having other
accounts “mirror” my trades automatically, but there are some details that
still have to be worked out. Right now, I’m waiting for a call back with
answers from questions I had about logistics and leverage. I’ll keep you
posted, but I remain optimistic both I and Assets FX can work out a plan that
benefits primarily you.
The Scalper Algorithm is currently using RM=1 in GBPJPY,
EURJPY, and EURAUD. I’m using the hourly candlesticks [1 HR] as the basis for
long and short positions; when the candlestick is green, I only establish long
positions; when the candlestick is red, I only establish short positions. The 1
minute [1M] candlestick cross over/under of plum and yellow establishes the
buy/sell signal.
If you are trading multiple lots, take partial profits at
the aqua line and let the rest ride until either the 1M red exhaustion line is
hit by price or the plum and yellow lines cross.
Please change your yellow line setting manually to “17” from “9” on
the 1M candlestick chart. Then insert onto your 1M chart the “-vegas
scalper.mq4” file.
With the updated Scalper Algorithm, you literally have hundreds of opportunities per day to scalp these 3 volatile pairs listed above. With spreads less than you would get at an exchange, you have the 3 biggest factors for success in short term trading; 1) very tight spreads, 2) volatile pairs that move, and 3) an algorithm that works and produces results.
Over the last few days, I have had some problems with our
email account. Yahoo reset the account, and unfortunately some emails were
lost. If you have sent me an email that I haven’t answered, please copy and
paste it from your email “send” directory and send it to me again so I can
answer it and hopefully answer any questions you have.
Have a great day everyone.
-vegas
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