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Monday, January 16, 2017

PROOF: MEET PUDDING

“Always willing to ask the important question nobody else dares”?


It’s Holiday time [again] here in Amerika, as MLK Monday gets federal & state apparatchiks a paid day off while the rest of the country basically works. Markets are closed in the U.S. making it a 3 day weekend for traders; perfect time for taking a look at the Scalper’s Algorithm results from earlier today and see how the algorithm handled 1) a shortened trading day due to the Holiday, and 2) the inevitable “chop” that you know will settle into this market. EXIT QUESTION: “How will the scalper’s algorithm handle a shortened day with heightened chop a definite possibility”?

Directly below, in succession, USDJPY from about 04:30 – 14:00; white arrows indicate buy/sell initiated positions in the direction of the arrow via the rules in the trading manual.

[Note: place mouse on chart and click to enlarge.]



Ok, the way I see these 6 charts, I’m lookin’ at 14 winners, 2 losers, and 4 scratches; but let’s just say that the scratches were losers [not much, but a little cuz you got out a little late or you got a bad fill, and after you add commissions you lost a little]. So, if you make this assumption, you’re looking at about a 70% win/loss ratio from today; which is about what I said earlier when I wrote it would be about 70/30 to maybe 80/20 on the high side over time.

Out of these 20 trades, it’s impossible to know what you, individually, would have made; 9 of the winners were clear, slam dunk awesome trades that should have “netted” at a minimum 5 PIPS+. It’s hard for me to see a collective gain of less than 10 PIPS no matter how you eventually ended up trading everything. The signals are clear enough, but the important things to remember are 1) that all 3 signal lines have to have the same slope; up for buys, down for sells before initiating a position with the M1 signals, and 2) when the 3 signal lines are divergent, you leave trades alone because the probability for “chop” is far greater than when the market is trending somewhere.

And all this on a day, I can assure you, is nothing to write home to Mom about in terms of trading; about normal in terms of Asia & Europe, with the afternoon European session tapering off early due to the Holiday in the U.S.

And just for you Newbies, in case you missed it some blog posts ago, directly below is the table which should guide you in your short term trading to allow you to escape the “Pudding Business” and “escape to success”. The x-axis top row is in weeks of trading, the left y-axis is the number of PIPS you need to capture per WEEK, and the meat of the table is the size of your account at 10X constant leverage with no additional deposits/withdrawals.


It’s mid morning here in Paradise, a Chamber of Commerce day if ever there was one; U.S. markets are closed, markets [while officially open] are deader than the Clinton Foundation’s sales desk for donations. The dog is ready … I’m ready … I’m so outta here … until tomorrow.


Have a great day everybody!
-vegas
OPEN A DEMO AND/OR LIVE ACCOUNT [CHOOSE THE “ZERO ACCOUNT”; REFERENCE ID# 6952 WHEN OPENING YOUR ACCOUNT] AT THE LMFX LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO IT NOW!”
 

 





 

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