Ever feel like you’re Elmer Fudd hunting wabbits? … and we awake today with
a real yawner … gold with a slightly higher bid/offer spread by about 10 cents
per OZ. … which is wholly unjustified given its trading action, but whaddaya
expect with the bullion banks gone and most likely replaced by HFT’s that fill
the vacuum?
After 15+ hours, GBPUSD 70+ PIP range for the day gets put in during the
Asian session, and Europe of course dies … now at the London Fix, and this
Monday is a joke for range and trading action … however, the algo did its job,
keeping you out of the infamous “Flying Wedge of Death” [FWD] in a small range
… larger ranges and the FWD is usually no problem cuz the distance between the
tips is wide enough to take advantage, but the smaller ones are killers … gold for
its part, now into the Basel 3 era, and I’m not impressed at all … bid/offer spread
at Turnkey too “Hoover Dam” high, and with slippage, you’re gonna need 28 - 35
cents for the bid to move just to break even … and with shit New York ranges,
that’s way too much to pay to trade it … so unless the spread goes down into
the teens, gold won’t be seeing me.
One item to note for “The Period 5 Algorithm” … for slightly more aggressive
traders than “pure conservative” in their style, I recommend changing the
LWMA, period 5, LOW to LWMA, period 5, HL/2 … this gives a slightly better
response time off lows, and cuts the number of trades potentially missed due
to the market moving higher quickly … if you want to leave it on “LOW”, fine
leave it on “LOW” … this is more of a trader style change than anything
fundamentally different.
Rally Cable and then slam it into the London Fix … ohhh, somebody got “fixed”
alright, the dumb ass corporations & institutions that trust scumbag banks to
give them fair & honest fills … and while Friday’s range in Cable into the New
York afternoon was abysmal, both it and today prove how effective “The Period
5 Algorithm” is in first keeping you on the right side of the scalp, and keeping
you out of disaster trades that quickly rebound and piss you off to no end.
Meanwhile over in “Stock Bellies”, another excursion into the abyss where first
the Chipmunks get fed, and then the DOW30 gets “monkey hammered”, and
then follows the “Loser Formation” … good luck with this FED manipulative
shit … quite frankly, the FED is killing VIX for all to see … come back in August
for Jackson Hole, and until then go fishing, cuz I doubt seriously there’s
anything to see in “Stock Bellies” until then at the earliest.
One algorithm buy signal in GBPUSD … TURNKEY PAMM UP SLIGHTLY.
I made the LWMA “apply to” field switch from “LOW” to “HL/2”, after the first trade
and then we missed the next signal cuz the market moved too fast away from the
buy signal … I had been contemplating the switch since yesterday night, but
stuck with the original conservative approach … if I had switched earlier, we
would have had a good day, instead of only up slightly … but no worries, cuz the
algo did its job today magnificently given the trading conditions … quite frankly,
given Friday & today, you’d be hard pressed to find 2 piss poor days any worse
than these two going back months & months … the fact that both days not only
kept traders out of trouble but made money, proves the efficacy of the algorithm
… and I would add, that anybody that chose the short side instead of the long
side of Cable, would have done considerably better … I stick with the one side
[long] cuz if I knew with certainty where it was going I wouldn’t need any
algorithm cuz all I would have to do is either buy or sell and keep adding
… then liquidate … and within months I’d have all the trading money in the
world … and since this isn’t possible [sorry “Holy Grail” enthusiasts!], I’ll stick
to one side so I don’t get chopped up in yo-yo action [like today].
Including gold [XAUUSD, which is part of FX], I got 3 other FX pairs up on my
screen … EURUSD, EURJPY, & GBPJPY … today from these other 3 pairs, much
better buy signals in terms of 1) the parameters being in sync with market action,
and 2) profitable runs once the signals were given … understand though, you
can get caught playing “Whack-A-Mole” with these as a group, and spend all of
your time running back & forth among pairs … and about the time you get to one
pair another one takes off, and you end up missing everything … all I’m saying is,
the other pairs today had better profitable days than Cable did standing alone
… don’t worry, every dog has his day to ride the fire truck and feel like “King”,
and every dog has those days when the fleas won’t leave him the hell alone.
Most likely this is the slowest day of the week … end of month / Q2 2021 flows
will start tomorrow, so that has the potential to move pairs some … Stonks” look
& feel hopeless ‘til Jackson Hole, and gold trading conditions look too be worse
than pre Basel 3 … meanwhile, while BTC & ETH rally some today, the alt-coins
simply sit … just a disaster in terms of trading action … no trades today in
crypto.
… outta here … “the future’s so “GOLD”-en bright I need sunglasses”! 😎
… Onward & Upward!!
-vegas
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