I NEED A HUG

                                        Just Like Me Somedays

Back in the day, when trading pits ruled the world, there would be some days that came along when everything you did was either wrong or misguided. It almost seemed like you couldn’t spit and hit the ground. Even the lowest 1 lot scalper scum that slithered along the exchange floor would snicker as you walked by. Clerks looked at you like your zipper was open or you had drool on your chin [or regrettably both].

When I felt like this, I would stretch my arms and hands as if to buy, and scream out,

“Hey, I need a hug!”

Of course, the obligatory spit balls, used chewing gum, flying Frisbee trading cards, golf tees, and other trader memorabilia would come hurtling in my direction along with suggestions about my sexuality and colorful verbal recommendations regarding my mother’s ancestry.

“Ahhhhhh, the memories…”

I want to apologize to everyone that has been looking forward to my trades via C2, or my scalper trades via Twitter; these last couple of days I feel like the guy who got stood up at Prom, and as a result just haven’t had the gusto to even turn on the computer. Don’t worry, I’ll be back trading tonight or tomorrow, and if I have disappointed you I am sorry.

I thought, and was led to believe until yesterday, that things could be worked out at Assets FX for mirrored trades; the half-truths I was fed have just turned me off and make me want to join the circus.

I’m not in a state of self-pity or depression, but more disappointed in the fact that the more things change, the more they stay the same; the trading industry is still the same predatory animal as it always has been. On so many levels this bothers me.

I’ve put the staff on some projects to see if this situation can be solved with some bank out there wishing to build a business; we’ll see what turns up in the weeks ahead.

Have a great day everyone.

-vegas

THE FLEECED STATE

                                      Yea, I Know How He Feels

For some of you, your probably wondering what I’m doing with all my trading time? “After all, I’m not seein’ any trades now am I?”

Finally last night, just as Europe gets around to waking up, I had some conversations with Assets FX about having my trades mirrored [copied] to other Assets FX accounts. This lasted until the wee morning with phone calls, Skype, emails, and chat.

The bottom line is that we are NOT going to be doing anything related to this matter.

The reason is simple: MONEY! Not theirs, but YOURS!

I’m sorry, but the sad state of affairs in electronic FX trading, with both brokerage houses and banks, is that they view your money as chump money to be taken advantage and fleeced.

This isn’t something you can blame Assets FX with, as it is a problem infecting the entire trading industry. All of them will compete with each other to get your personal trading account and in the process offer spreads and other considerations that slash their margins to the bone.

But bring up mirrored trades, managed accounts, MAMM, or PAMM and the doors shut immediately. No longer can you expect any kind of consideration or “deal” because the pervasive view is that this is money [meaning yours] that we can literally scalp and get away with highway robbery. All kinds of fees get loaded into the spread, along with fund manager largesse, such that you can barely find a bank or brokerage house that has any of the above named programs where you can trade EURJPY for anything less than about 3 pips [and in some places a 3 ½ or 4 pip spread]. The other pairs [e.g., GBPAUD or EURAUD] and your talking 5 pips plus].

Oh sure, they can mirror my trades, but here are the conditions:

1)     I have to go “buy” software that can copy my trades from “my” MT4 program,

2)     Then the trade is sent to Assets FX where it is executed, and of course

3)     No guarantee can be made your fills will be anything like mine, and finally

4)     Only the “exact trade” can be copied with no regard for leverage.

“Ummmm, excuse me, but anybody but me see the very real potential for abuse by the brokerage house or bank here?”

So, in short, I have to do everything, they do nothing, and just like an EA they are going to rip your market order “mirrored” trade to shreds. Nope, ain’t gonna happen on my watch. Some days, this industry makes me want to puke.

And in case you’re wondering, banks are no better.

“Um, gee –vegas, why do you want to do something like this when we have such a great money-making program in place?”

Me: “I’m trying to offer value and expertise to the masses and thereby attract more biz for you.”

Banksta: “But we can make so much money our way.”

You see how this goes? I’m the crazy one.

So, the only thing I can do is either form another PAMM [which I’m not doing because they rip everyone off] or have you do your own short-term trading. I’ll continue to post on Twitter when I do something [C2 or Assets FX].

Seriously, this is one of those days when I wonder if joining the circus would have been a better career option. Welcome to the fleeced state of world finance.

Try and have a nice day everyone.

-vegas

SQUARE PEG, MEET ROUND HOLE

              And Then ......, Jack Got The Bright Idea To Be A Trader

Everybody comes to the marketplace to make money; the $64,000 question is how are you gonna do it? Do you know yourself? Have you figured out your limitations and liabilities? What are you going to risk, and where do you draw that proverbial money “line in the sand”? These and a couple of dozen more equally valid questions I could easily rattle off to ask a Newbie to the FX market.

Over the years, months, and weeks I have often talked about why people fail at trading; add one more to the list. Your trading plan (algorithm) doesn’t match your 1) personality, 2) lifestyle, 3) risk management profile, and/or 4) your trading goals.

There is absolutely no doubt in my mind the “Long Term –vegas Big Bang Algorithm” is one of the very best money making opportunities you will ever come across in the Forex universe. Its visual approach is relatively simple to understand and implement, and of course it is free and supported by me.

BUT …….

As with everything in life, you have to understand the limitations and drawbacks of the algorithm to be successful. In short, the biggest drawback of the algorithm is the large amount of time you have to give the market [any of the FX pairs].

The algo is a real time hog! We don’t know which session, or which hour (s), any cross will really move. I don’t know anyone who can stay up and focused 24/5. I tried it once, and by Tuesday night the dog was talking to me.

For many people, and for many reasons, a shorter time approach is almost mandatory due to life getting in the way of your love affair with your MT4 trading platform.

When I developed the Long Term Algo in late summer, I already knew in my mind the foundation for the Scalper Algorithm was in place; yet, I was missing a key component that was driving me nuts.

Briefly, I was missing the proper math equations to account for fractal time compression.

A couple of on-the-side speaking engagements [where I am always intellectually stimulated], a chance meeting with a University math professor, and a walk on the beach with Cousin It and I get up the next morning and BAMMMM !, there it is tattooed on the inside of my eyelids. The solution couldn’t be any clearer.

[Caution! Trying to understand the logic put in motion by the events of the last paragraph may result in loss of appetite, extreme nausea, and of course hot-dog fingers.]

Because so many people need it, I’ve decided to publish a PDF manual for the “-vegas Scalper Algorithm”. I should, barring any last minute delays, have it ready by Sunday afternoon or evening. I have already placed [for free download at www.4shared.com ] the link on the blog so you can download and install the MQ4 file. Alternatively, you can always email me at vegasalgo@yahoo.com and I will send it to you.

The manual will show you everything you need for success in short-term trading.

These last couple of days I have not traded because I have been working on this file. I think it is more important for you to have this information than me making money and you trying to figure out how I did it.

When trading resumes on Monday, I will be using C2 for the “Long Term –vegas Big Bang Algorithm” in GBPAUD, and I will be using the new “-vegas Scalper Algorithm” for trading in either GBPJPY or EURAUD. I will keep a running tally of the scalper algo results on the blog, with end of month copies of all trades in the account for those that want to verify the results.

Hopefully, within the next few days, I’ll also have information about Assets FX accounts that can mirror my trades automatically when I trade.

Have a great day everyone.

-vegas

BOTH EDGES CAN KILL YOU

                                 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

TIME TO PROSPER

                                    The Right Trading Mindset

As if I need one more thing added to my proverbial plate, I’ve just found out that Assets FX has initiated a signal service for accounts held at the brokerage house; meaning of course that since I have a real account and make trades, anybody else that has an account at Assets FX can have my trades “copied” into their account. [When I asked about this very subject 3 weeks ago, nobody knew anything. Now all of a sudden it’s here; go figure.]

I don’t have all the details, and I need to talk with someone at the brokerage house about some issues that seem to plague these kinds of “services” everywhere you go. Since it is late Friday on the European continent, getting somebody now who knows anything about this is impossible. It’s Friday afternoon just after New Years Day; as you would expect, the “B” and/or “C” team is running things, and anything but the simplest of questions will have to wait until next week.

If I like what I see, then this would be a great compliment to what we have implemented. This doesn’t change anything at C2. With the added benefit of Assets FX, I still need C2 for 2 important services; 1) verifiable independent third party track record of the algorithm signals, and 2) a place for managed funds to go that might not wish to trade at Assets FX. For whatever the reason, everyone has different choices they can make that suits their individual style of trading.

If this works out, then I don’t know how we can get any more flexible in giving traders what they want from trading; every base will pretty much be covered.

From the information I was provided it is a straightforward enough proposition; I register my account and other accounts sign up for my trades. If I wish to charge for this I can, but like I said, I have questions about leverage, spreads, any brokerage house fees, etc. that need to be answered first. Ahh well, something to do next week besides trade.

When I have all the details, and can make an informed decision, I will of course let everyone know my plans and course of action. I want to be thorough and not have any surprises if we in fact do this.

I don’t see anything on the near-term, intermediate, or long-term horizon that should impact volatility in 2014 regarding the AUD and/or JPY crosses. With both Japan and China in flux [and make no mistake, whatever happens in China greatly affects AUD]; both pairs in the denominator of any of the crosses you choose; volatility should offer us many trading opportunities for profit over the coming year and beyond.

Both the Long-Term and Scalper algorithms will catch these moves when they happen; if it moves the algorithm will be on it like white on rice. If you haven’t done so already, I urge you to 1) install the proper MQ4 file onto the appropriate charts so you have the algorithms operational, and 2) spend some time scrolling back and looking at prior signals so you can see for yourself the power of the algorithms.

I stress again for you Newbies out there reading this; download the demo [Assets FX or any other place you choose] and make your first mistakes with play money. I don’t care who you are or what “pedigree” you think you belong; if you are new to this, you’re gonna make mistakes!

I fully realize that the longer I post, and the number of posts rise along with people visiting the site for the first time, that if you are new here it seems a daunting task to “get up to speed”. Not to worry; if you have any questions simply email me at vegasalgo@yahoo.com and I will get to your post personally ASAP.

Most of the time I reply quickly to reader inquiries, but there are times when I get “blasted” and it might take a few days. Rest assured, I will take the time to respond to you personally. Only I answer emails; the staff [Chief of Staff Milton Waddums, -vegas Jr., and Cousin It] has enough to do with the stuff I give them.

I’m here to help you make money without reaching for your wallet. [Pocket change accepted of course.]

Have a great day everyone.

-vegas

JOINING THE COLLECTIVE 2 COMMUNITY

                           Linked To The World Via Collective 2

In the next 48 hours [or something close to it] we’ll have everything done with Collective 2 [C2] and be ready to use their service.  I will post the link when it is ready; in the meantime you can find all the information you need at their website http://www.collective2.com .

In short, they will provide 2 important things for us; 1) the ability to manage funds [at a very low cost structure] for those that absolutely need it, and 2) provide a verifiable track record for the world to see [over 71,000 active member accounts].

There are different options you can use to get my algorithm signals here, but really C2 is for managed accounts only and a source for a public third-party verifiable track record; if you just would like my signals [emails or SMS text on cell phone], use the Twitter service for free I will talk about in my next post. If you’re trading your own account, why pay C2 for a service that I’m supplying to the public in real time at no cost?

The signals generated will come from a demo account at C2; the reason it is not live is because I am not willing to open an account and trade with higher spreads. At present, Assets FX does not support the C2 service. Below is a list [with links] of brokerage houses that support the C2 service. For those of you that wish to have the algorithm signals automatically traded with your account, you have to have an account at one of the following brokers [broker name, country regulated, web address, Forex Peace Army Star Rating (0-5 stars, NF = Not Found on FPA system for broker review, NR = Found on system review but no reviews)]:

            VISION          [India]             http://visionforex.co.in        [NF]   

            THINK FOREX         [AUS] http://www.thinkforex.com    3 1/2   

            STRIKER                   [US]    http://www.striker.com           [NF]

            BELFOR FX              [EU]    http://www.belforfx.com        [NR]

            FXCM                        [US]    http://www.fxcm.com             2 1/2

            GAIN                         [US]    http://www.gaincapital.com    [NF]

            TRADE MONSTER   [US]    http://www.trademonster.com    [NF]

            OEC                           [US]    http://www.openecry.com      [NF]

            dt                                [US]    http://danielstrading.com        [NR]

            DORMAN                 [US]    http://www.dormantrading.com [NR]

            OPTIMUS                  [US]    http://optimusfutures.com       [NF]

            PEPPERSTONE         [AUS] http://www.pepperstone.com  2 1/2

            AVA TRADE               [EU]    http://www.avatrade.com       2 1/2

            ALPARI UK               [UK]    http://www.alpari.com            3

There are a few things to note here; 1) all U.S. brokers will do 2 things, A) send you a 1099 at the end of every year, 2) limit your leverage per NFA rules to 50/1, 2) I’m not recommending any of them, only listing what is available at C2, and 3) I take the star ratings from FPA with a “grain of salt”.

As for Assets FX, FPA has a 2 ½ star rating for them with the note that some suspicious “great” reviews are spam. According to the company this was the effort of a PR firm they hired. That firm has been fired and I have talked to the company about this and they readily admit the firm made a mistake and the situation resolved. They only ask that I try them and give them a chance to show what a great FX brokerage house they are. Openness I like; you’ll get your chance to impress.

On the cost front, there are two costs to bear for the customer [you]; 1) half a pip for each round-turn trade [no matter the brokerage house and their spreads] from C2, and 2) a fee I set up for the service, which by the way, is about the lowest C2 will let me charge.

I’ll be offering the first quarter [90 days] for a free trial; after that it will be $60 per quarter. C2 takes care of payments from you, and they take 1/3 of that $60 for themselves. So, the first year it costs about half a pip plus $0.75 per trading day [using 240 reasonable trading days in a year]. Every year after that it costs half a pip plus $1.00 per trading day.

As you can see, I’m not doing this to get rich or treat you like “muppet money”. Of course, the larger your trades the cheaper this becomes. In the scheme of things it’s all irrelevant anyway; if you’re worried about a $1.50 or a $1.75 and your trading tens if not hundreds of thousands [maybe even millions] of base currency per day, then your focus is misplaced.

Besides, in addition to this, I have to pay about $200 per year for the service. Since my staff [Chief of Staff Milton Waddums, -vegas Jr., and Cousin It] eats more than this in Shrimp and Crab Legs at our hangout favorite seafood restaurant every week at staff meetings [where I pick up the tab of course], I think I can swing it.

Once the trading begins, the public can view the charts [account equity] and also all the important trading statistics the system keeps track of for customers. I’ll link this info on the blog site when we get going here in the next few days.

The next post will be about our free Twitter signals for those of you who want to know what I’m doing and why on the fly. Be back then.

Have a great day everyone.

-vegas

A NEW PLACE TO TRADE

                                         So, Why Assets FX?

I want to start by saying that the reason Assets FX never appeared on my radar screen is simple: they have no PAMM or managed accounts programs. In the past, this was an important search criterion.

One important thing you should know, and really it has been a big problem for investors and traders everywhere since the start of the modern trading era in the late 70’s, is that brokerage houses, banks, and the vast majority of fund managers view managed money as “chump” money, “low hanging fruit”, “Muppet dollars”, “easy pickings”, etc.

Today, as in the past, there is an entire food chain of people and institutions involved in “getting their share” of your managed funds. It is literally impossible to find a place to trade that doesn’t want spreads of at least 2 ½ - 3 PIPS [or more!] for a PAMM. It is a problem I have faced at a number of places in the past, and because of that it limits my flexibility to manage funds effectively.

For those that need [for whatever the reason] managed accounts, I’m going to address that situation in my next post when I talk about Collective 2, and our plans for using them in the most competitive, low cost trading environment out there today. It’s not perfect [there is no perfect trading environment available for retail accounts], but it gets the job done in the lowest cost structure my grey cells can get you. But that’s for the next post.

There are 4 important criteria, in choosing a brokerage house, if we want the most flexibility offered to us via trading FX; 1) safety of funds, 2) cost of entry to trading [i.e., low account opening balance with flexibility of high leverage for those that want it], 3) tighter spreads than you can get on any exchange with the flexibility of trading any amount versus exchange standardized contracts, and 4) NO limits on your trading [i.e., no “freeze zones”, no limits for taking profits or setting stops, and NO requotes.]

It is for these reasons that I have chosen to trade at Assets FX. Don’t take my word for it, go visit the website http://assetsfx.com and do your own due diligence. If you have any questions get on live chat [07:00 – 22:00 server time] or send them an email.

With the release of the Scalper Algorithm, you now have the means and the place, to get the total job done. No matter how you want to trade, the savings from less-than-exchange-traded-spreads will put a lot more money into your account versus more of your money going to the banks and the brokerage house.

Now, the one limitation we face is that they have no offshore debit card for withdrawal. You are either going to have to use wire transfer to/from a bank, or back onto a debit/credit card. This has obvious consequences.

If you are a small trader, trying to build your pile of money, this limitation will be more of an inconvenience than a financial hit.

For larger traders, you can easily find offshore information [plus a whole lot more] by doing simple search engine queries. If you do internet search, use “Duck Duck Go” as your search engine; they [unlike Google] will not track and save your search queries.

Look up IBC’s [International Business Company], Private Interest Foundations [PIF’s], and concentrate your search efforts on Belize, Nevis, and Panama. What you will find is a literal ton of information on structure and strategy.

Of course, after you do this, any offshore law firm or incorporation service worth their salt will validate your search efforts, answer any questions, and give you their opinion on which strategy is best for you.

So, I’m just sayin’, in case you find this factual information interesting and educational.

Have a great day everyone.

-vegas

THE “-vegas FX SCALPER ALGORITHM”

                                    Happy Scalping Mi Amigos

Before I get into the “guts” of the scalper algorithm, I want to set the stage [so to speak] to give a needed sense of perspective to many of you closet scalpers out there who are wondering just how to correctly go about “scalping” an FX market.

Back in the day [late 70’s to very early 80’s] when I started trading there was one place, and only one place, you could go to trade FX; if you didn’t like the rules or structure, tough toenails. Standardized futures contracts [125,000 per 1 lot] in dollar pairs was it for retail accounts, no matter how much money you could put into an account.

At that time most retail accounts paid anywhere from $12 to as much as $75 per 1 lot to trade, with most around the $25 level. An exchange membership cost about $250,000; that got you floor access and most locals [floor traders who trade for their own account] paid anywhere from $0.75 to as high as $1.25 per 1 lot, with scratches [buys and sells at the same price] costing 0.

Since everything was standardized, a 1 pip move on every exchange traded contract was worth $12.50.  With that kind of cost structure, you don’t need to be a rocket scientist to see that locals could scalp and most retail accounts found it a losing game.

Today, the only thing that has changed is mostly the structure; the vast majority of electronic brokerage houses have spreads in the 2.0 – 3.5 pip range for most actively traded currency pairs in any amount you want.

The most crucial element to being a successful scalper is the spread you face and any commissions added onto that. [I’m assuming, of course, you have a successful algorithm beforehand.]

My staff and I have chosen to now trade at Assets FX in Finland. Below [in no particular order of importance] is a list of FX spreads in the Asian session for those pairs that consistently trade with spreads less than 1.5 PIPS. Whatever the spread is in the Asian session, rest assured it will be the same or lower in the European and U.S sessions later in the trading day.

USDJPY         0.30 – 0.70 PIPS        

GBPUSD        0.50 - 1.00 PIPS

EURUSD        0.50 – 1.00 PIPS

AUDUSD       0.50 – 1.00 PIPS

USDCAD       0.50 – 1.00 PIPS

EURGBP        0.30 - 1.00 PIPS

EURAUD       1.00 – 1.50 PIPS

EURJPY         0.40 – 0.90 PIPS

AUDJPY        0.50 – 1.00 PIPS

GBPJPY         1.00 – 1.50 PIPS

In essence, with these tight spreads [the commissions are virtually meaningless, being 0.26 of a PIP], you’ve become a local without the cost of an exchange membership. If I couldn’t get these low spreads, I wouldn’t attempt to scalp; the reasons should be obvious to you.

I’m releasing this algorithm to give traders flexibility in their trading.

I will give one example of what I mean. Suppose you are an active trader that runs a small business. Next week, you have Monday and Tuesday free, but the rest of the week you will only be able to spend maybe 3 – 4 hours each day [Wednesday, Thursday, and Friday] for trading.

With the release of the “-vegas Scalper Algorithm”, you now have some options for your trading next week. You could trade the “Long Term –vegas Big Bang Algorithm” Monday and Tuesday, and then switch to the “-vegas Scalper Algorithm” the rest of the week; this is just one of many options you could use.

[Note:  the "-vegas Scalper Algorithm" is available for FREE download in the FILE DOWNLOAD LINKS section of the website (Vegas Scalper.mq4). If you have any problems downloading, or you want me to send it to you directly, email me at vegasalgo@yahoo.com ]

The “-vegas Scalper Algorithm” gives you the flexibility to use either the daily candlestick chart, the 4 hour candlestick chart, or the 1 hour candlestick chart as your basis for determining long or short positions. Personally, I like the 4 hour candlestick chart, so I will use it in my example. Realize though, that theoretically there is no reason why the 4 hour should be better or worse than the daily or the 1 hour; it’s a matter of personal choice.

Instead of using the 5M candlestick chart, we use the 1M candlestick chart. The yellow/plum signal lines are the same as with the “Long Term –vegas Big Bang Algorithm". The signal cross over and under are the same also for generating signals.

What is different is the AQUA LINE [the red line is still an exhaustion point in every Risk Model (RM).

You need to set a base unit of trade for yourself, and on every trade you need to do 2 units. So, for example, if your base unit is 10,000, every trade starts with a 20,000 position.

If the 4 hour candlestick is “green” [meaning up no matter by how much], we only initiate new long positions and ignore short signals; if the candlestick is “red” [meaning down in price no matter by how much], we only initiate short positions and ignore long signals.

Here is a screenshot of EURJPY:

                                   [click on chart too enlarge]

Note that the 4 hour is green, so only long positions are being taken right now in this 4 hour time period. When the plum line crosses over the yellow line a new position is taken with 2 units of trading [whatever that is for you]. If the market price touches or exceeds the upper aqua line you must liquidate half [1 unit] of your position; the other half you let ride in a “free trade” until either exhaustion [red line] or the plum line crosses under the yellow line.

With this “free trade” you never, and I mean never, let this go from profit to loss; if it starts to turn against you then simply get out.

Personally, I would not scalp in front of major news events, and I would ignore the Asian session if I could. Better opportunities await you from Europe and the U.S.

Remember, scalping is just that; you’re trading for small gains and that is the purpose of the aqua line. But if the market starts trending straight on the 1M candlestick, why predetermine your gain with the other half of your trade? Let it ride until the signals tell you it’s over.

The Holiday Season is here, and markets may [or may not] be listless and somewhat dead for the next 3 weeks. This is a perfect time to do your research on the Assets FX MT4 trading platform [live or demo makes no difference] and take a serious look at the markets you may want to scalp trade.

It’s somewhat difficult to scroll back with the 1M candlestick charts back into the past, so the best alternative is to look every day at what happened in the pairs you are interested in scalp trading. Make a few trades with the demo, because it will factor in the miniscule commission of [round turn] $2.60 per 100,000 traded pro rated.

This scalping algorithm should be fairly easy to everyone who is familiar with the “Long Term –vegas Big Bang Algorithm”. If you have any questions, write me at vegasalgo@yahoo.com and I will respond as quickly as events allow me.

Have a great day everyone.

-vegas

OMELET MAKING 101

                             Jimmy Gets Chosen For The Omelet

A few minutes ago I wrapped up the remaining pieces of the puzzle, and there is a plan in place to provide you with excellent choices going forward. Sure, a few eggs had to be sacrificed, but that’s what happens when you start out to make a great omelet [Errr, sorry about that Jimmy].

It’s been a rough last 5 days, and what made things more hectic is the fact that “anybody-who-is-anybody” is getting ready to bolt the FX scene for the Holidays; not to return until the start of 2014. I’ve had to skip trading in order to get things done because I wanted everything to be “wrapped up” by tomorrow. By next week, getting in touch [via phone, skype chat, or email] with anyone in charge at a brokerage house will be Mission Impossible.

There are basically 4 elements going forward that everyone needs to be aware of and understand; 1) where I and the staff will be trading [Assets FX] our personal accounts [Cousin It is actually opening a real account instead of a demo!!], 2) vendor service for those wishing me to trade their accounts along with third-party verification of results [Collective 2; there web address is http://www.collective2.com ], free signals service via Twitter [available to anyone and everyone starting next week], and most importantly 4) the release of a scalping version of the “-vegas Big Bang Algorithm.

Over the next 4 posts, I am going to go into detail on each one of these, and attempt to explain exactly what it is [and why] we will be using these services. We’ve pretty much got the playing field covered, and there is something here for every type of account and style of trade. There are a couple of drawbacks [minor], but overall there are many more positives than there were before.

If you have been following the algorithm over the last few days [especially in GBPAUD], you know what a fantastic job it has done in 1) nailing the moves, and 2) pinpointing the exhaustion areas with uncanny accuracy. It’s doing what it is supposed to do; namely keep you out of trouble so you can make money.

Have a great day everyone, and I will start attacking the mountain of emails I have waiting for me tomorrow. Until then …….

-vegas

FIRST THINGS FIRST

                                      Well Yea, This Is A Given

Once a house breaks the trust you thought you had, the first step obviously is to find a new place to trade. I could bore you with the details, but after 3 days of due diligence, I am transferring some trading funds to Assets FX Trading. Here is the web link:

Assets FX Trading

My two main criteria are 1) safety and segregation of funds, and 2) very low spreads, and I’m satisfied both are met here. This is a 10 year old Finnish trading firm specializing in EA’s and scalping, although all trading models are welcome. This is a pure ECN, DMA, and STP brokerage house; never any re-quotes, no freeze zones, and no minimum distance for stops. This is institutional grade liquidity on the MT4 trading platform with the lowest spreads I have seen for non-dollar crosses available to retail accounts.

They offer high leverage [if you want it], low opening account balance, and they accept U.S. clients.

Since you basically have institutional access to the inter-bank market, there is a commission on each round turn trade; $2.60 per 100,000 base unit of currency. This is 2.6 tenths of a pip; Whoopee whoop whoop!!

Here are some sample spreads I observed today:

GBPAUD       2.3 PIPS

GBPUSD        0.7 PIPS

AUDUSD       0.6 PIPS

EURAUD       1.7 PIPS

EURUSD        0.5 PIPS

USDJPY         0.2 PIPS

EURJPY         0.5 PIPS

GBPJPY         1.1 PIPS

Now, these spreads aren’t “low-ball”, they are common throughout the European and U.S. trading sessions. In the Asian session, GBPAUD and GBPJPY averaged about 0.3 – 0.5 PIPS more, but the other pairs listed here remained about the same. Of course, there are another 50+ pairs you can trade, and I invite you to find the pair that is most appealing to you.

I got to admit, looking at that EURJPY spread has my eyes watering.

If you traded EURJPY only 2 times [round turn] each trading day, and traded a 1 lot [100,000 base currency], your fees [including the spread] would be $15.20. If you did the same trades at another house [like Forex-Metal for instance] with a 3 PIP spread and no commission, your fees would be $60.

That’s a $44.80 difference over approximately 240 trading days in a year; a savings of – are you ready? - $ 10,752 per year!

That’s a lot of  $$ moola $$  to be shoveling to a brokerage house for nothing!

And that’s just with 2 lots! Imagine if you did 5 lots?

I would expect and encourage you to visit the website and get on chat if you have any questions; live chat runs from 07:00 – 22:00 server time.

This is the first piece of the equation; I’m in the finalizing part of getting vendor service for signals and I’ll have more on that in the next couple of posts.

Have a great day everyone.

-vegas