“Dude,
was today for real or am I dreamin’?”
You
got to go back a very long way to find the last “double reversal, “Flying Wedge
of Death” [FWD], with 50+PIP spikes all over the place, and the ranges as large
as they were today. Quite frankly folks, the speed at which GBPCAD moves off
highs & lows is frightening … checking the “tape”, directly below, first
the HR4 from 08:00 – 12:00, and the second, the same M5 covering 08:00 – 16:00.
Please
note, off the interim lows around 1.71400, the thievery and shenanigans of the
LP’s on full display, as they widen the spread to over 10 PIPS, thus taking out
retail spec sell stops by lowering the bid, and at the same time refusing to
lower the offer below 1.71510 for those looking to either cover shorts or get
long … pure thievery, any way you cut it ,and these F-ing thieves should be in
jail somewhere … of course they won’t, cuz they got the brokerage houses &
regulators in their hip pocket, as well as the HAL9000 computer systems that
tells you “everything is F-ing Awesome
Baby!”, before then telling you to STFU and go away. And within seconds …
literally … we’re up in the 1.7180’s before you can say, “WTF was that”!!
All
told today, again for the umpteenth millionth time I’ve pointed this out, the algorithm
performed well … in theory … from a logistical & practical standpoint,
however, it continues to see very large spikes on buy/sell signals, thus making
it extremely difficult to judge whether to take the signal … problem is, you
got no time to make the judgement; literally zero … and then BOOM!, it’s 15+
PIPS higher/lower in a heartbeat. Today saw 2 ‘bloodbath” M1’s, where in
seconds price plummeted 50+ PIPS, thus insuring your sell stop got filled at
the bottom if you’re long… doesn’t matter if you were up 10 PIPS when it
happened; here’s your fill and you lost 40 … deal with it.
I
made 3 trades today; two of them the LP deemed it necessary to add some
outrageous slippage … the first buy I tried to make around 22 ½ to 23 and got
filled at 26, whereupon after the spike, literally within 1 second it’s at 17 ½
and the liquidation saw anther PIP added for “bat guano & giggles” … the
second one I tried to buy at 17 ½ to 18 and got filled at 23; again, immediately
its 5-7 against me, and throw in another PIP, thanks for playing … the third
trade saw no spike on the buy signal, and my fill liquidating was right on the
market. All told, after RT commissions, down collectively about $50 … quite frankly,
given the day’s double reversal in a large range with FWD, losing fifty bucks
is a victory … and if you think I’m kidding, I’m not … today was an extremely
dangerous day; even being long most of the day, 2 M1’s alone could have seen
you down 100 PIPS+ … and while I’m not making excuses cuz I don’t do that, all
we’ve seen from these markets lately is “tail risk”. Since I came back from the
hurricanes, and traded GBPJPY, all we saw there was low volatility “tail risk”
for 2 weeks straight; now 3 days into GBPCAD,
the first two days were two of the worst of the year, and now today a double
reversal with FWD, and crazy ass spikes up/down in size, that nobody can see
coming until it’s too late … these are things you don’t normally see with a
high probability; yet, here they are day-after-day … yes, it’s frustrating for
me, but we aren’t down all that much money; one half-way decent day that has a
normal to high probability of occurring, and the Scalper’s Algorithm is in the
black; take away the slippage, and today would have been a winner.
What
I’m not willing to do is throw away discipline & patience, hoping the
market will bail me out with a move in my direction; been there, done that … if
the algorithm doesn’t say do it, why would I possibly “fade it” and hope for
the best?
What
is patently obvious, is that day-to-day, one of the pairs is the clear driver
of the cross, and the other kind of “tags along”; so far, after 3 days, it’s
been all GBP and very little CAD. Today saw CAD volatility pick up some, but
the double reversal in it really messed with the cross. Point is this: I’m dropping
my PIP requirements for “special situations” … from now on, if I see in GBPCAD [especially
on the downside] a large spike down that is predominantly the result of one of
the pairs moving violently, while the other is doing nothing, I’m giving myself
the flexibility to “make the trade” and take advantage of the move. I simply don’t
see the need for the PIP requirement, after reviewing market history of spikes
in this pair; the upside is a little different, but I’m more doubtful of the effectiveness
of fading a large spike up … we’ll see, I’ll take it on a case-by-case basis.
Tomorrow
should be a good trading day; I’m looking forward to it, cuz I think the
algorithm will perform very well after today. Trust me folks, it’s Onward &
Upward!!
Time
for the beach … I’m outta here … until tomorrow. PAMM spreadsheet directly
below. [I need to re-install my spreadsheet … getting a “corrupted file” error
message; I’ll have it up later this evening after dinner.]
Have
a great day everybody!
-vegas
OUR TURNKEY FOREX “PAMM/MAM” IS NOW
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