I feel most days like, “1984 was supposed to be a work of fiction, NOT a how to
manual for politicians” … a bigger bunch of liars, hypocrites, thieves, and moral
degenerates running America we have never seen before … and that’s saying
something when you consider LBJ & Nixon weren’t exactly Boy Scouts … and
what infests society, infects financial markets as well, cuz they aren’t immune to
the rot and decay … and what we end up with is what we got today, which is
nothing more than a casino environment run by Elites FOR Elites, where
absolutely nothing makes any sense and good news is bad news and bad news
is good news … and yet, as the midterms prove, apparently the American public
loves the scumbags that represent them … your destruction will be complete
sooner than you expect!
Trading conditions slightly better today … I came into today looking at USDJPY,
simply cuz until GBPJPY figures out what it wants to do and then does it, it’s a
60/50 crap shoot inside the smallish yo-yo horseshit of the “Flying Wedge of
Death” [FWD] … ranges seemingly getting smaller by the minute, and quite
frankly both pairs are moving in the same direction, thus cutting the range
… now into the 4th day in a row of “cramped” conditions, with spikes from Hell
taking away small gains with abandon … so best to leave it alone until it decides
where to go.
USDJPY somewhat “messed up” starting the New York morning session, as
housing starts first hurts longs, running sell stops, and then it’s the quick
reversal blasting higher once the banks took out somebody and shot them in
the head, and bought the forced break … it’s what they do and who they are,
never forget that … this idea of an “efficient market theory” is utter propaganda
… sure, go ahead, ask the fox guarding the hen house if everything is OK … Yup,
everything is fine! … how come there’s chickens missing? … there are chickens
missing? … who knew?! … and of course, the financial MSM is only too happy to
play along … what a joke … it’s only when you base your trading model around
banks or an HFT stealing money through various stop runs, front running
institutional orders, and general “scumbaggery & fuckery” via slippage and
variable spread manipulation bullshit, can you ever hope to make any consistent
money trading … THAT BEING SAID, THE BLUEPRINT FOR SUCCESS IS RIGHT
OVER IN DOWNLOAD LINKS VIA THE “ENERGY TRADING ALGORITHM” … as
long as any market has a “Trading Ratio” [TR] above 4.0, where the
TR = (spread cost + commission round turn cost + usual slippage) / (60 period
SMA on the m1, HIGH FOR THE PERIOD - LOW FOR THE PERIOD), THE
ALGORITHM IS AS GOOD AS GOOD GETS.
As with any trading model or algorithm, there are gray areas, and issues that
advanced math, no matter how sophisticated, can’t solve … and different spaces
have different personalities … the NDX100 doesn’t trade like USDJPY, and the
list can go on and on … as such, coming this weekend after the Sunday update,
I’ll be posting for download or viewing online in Adobe PDF, “The Energy Trading
Algorithm” for FX pairs, with examples … and I’ll try and tackle some of the
issues traders may have regarding implementation … I’ll also have some ideas
for advanced trading techniques that strictly limit and define risk over a very
short period of time, and how best to utilize the algorithm to grow a small account
into a very big account with very little stress … stay tuned, and while it isn’t for
everybody cuz nothing ever is, IMHO it’s a good way to tailor your trading for
profit while avoiding blowing out your small account … and from what I know
from my experience dealing / advising / and attempting to teach very small
traders how to stay “in the game” over the years and decades, quite frankly if
your capital is very small, IMHO it’s the way to go to grow money.
I want to be clear here, though … this is something that isn’t gonna be able to be
explained in just a couple of paragraphs, whether I write about it on the blog, or
include it as a chapter in the upcoming PDF … quite frankly, it will need its own
manual, which I will do most likely before the end of the month and then post it
as well for download or viewing online … what I will first write about is the
general groundwork and premise behind it … I will not get into specifics, that
can wait for its own manual … first, though, it will be extremely helpful for you
to think about what it can do, what it prevents from happening, and how it
benefits your small account, so you can grow it into a big account … once that’s
covered, going into detail will make more sense … it’s all coming up shortly!
Today sees GBPJPY with a pretty piss poor daily, as well as New York session,
range … talk about getting caught in a meat grinder, this market these last 4 days
is it! … like I said, wait for it to “fish or cut bait” and for ranges to start growing
instead of shrinking … let this market tell you first what it wants to do, not what
you want it to do … USDJPY with a decent ~ 190 PIP range for the day, and the
New York session just a tad below average [so far] … again, let me play the
broken record, “WTF, do I have to move to frickin’ Thailand?” … not so much
earlier in the session, but some great trading action, and more importantly ALGO
SIGNALS, during the last hour or so of the Asian session into the European open.
The key of course with USDJPY is rate differentials … and while every market
gets ahead of itself at some point and overshoots what’s happening on the
ground, it’s hard for me to see how 10 YR. Treasury rates go lower with
entrenched inflation running well over the bullshit “official” CPI of over 8% … I
don’t see how anybody with any brains would want a 3.75% return over 10 years
on something that’s guaranteed to get monkey hammered with inflation to lose
purchasing power … oh, and you get to pay taxes on that whopping return
… WTF, somebody tell me how this makes any sense whatsoever? … that said,
only a depression in the world economy, led by the Chicoms, is gonna get rates
much lower than this with inflation still above 8% … and that’s the “official”
horseshit propaganda number government wants you to believe … everybody
and their pet monkey knows it’s much higher than 8% … hey Biden, been to a
grocery store lately? … so a sustained move below 138 in USDJPY looks like a
low probability event, and up and until that level gets breached, I’m biased in
USDJPY to the upside … not saying it goes through 151 anytime soon, just that
there will be YEN selling along any path USDJPY wants to take … but hey,
ultimately the algorithm tells me when to get long, not my humble opinions!
… I just hope Mrs. Watanabe & gal pals, along with the Chuckleheads, can get
a grip and stop goosing ranges overnight … I’m allowed to dream can’t I?
Of course, now that the U.S. is in full gear, we can’t get shit … we get enough for
some signals, and the TR is acceptable, but it ain’t ideal, that’s for sure … getting
multiple decent signals this past week has been a chore, but hey, it is what it is
and the moves outside the last 4 days have been nothing short of exemplary
… so, a slight rest for USDJPY before shit heats up once again is not entirely
unexpected or surprising to me.
One decent algorithm buy signal today in USDJPY … PAMM UP SLIGHTLY … it’s
good to capture some “buy fuel”, but these last days I’m fighting the tape on
signals and the algorithm calls for scalps … that’s exactly what I did today … and
after I did that long trade, it’s been like looking for a corn field in the Saudi
Arabian dessert to find another signal that I like … now into the New York
afternoon, and any range extension either way looks completely “iffy” at best,
as price just chops with a lower bias, back to where the morning rally started,
right around the 140 level.
As I’ve said before, 1) I want to avoid the “Whack-A-Mole” chasing markets
syndrome at all costs, and 2) all we need for multiple buy / sell [when
appropriate] signals is a TR above 4+, the higher the better consistent with
spreads staying low … that obviously means news events will see a higher
spread, but in USDJPY it comes down rather quickly back to around 0.3 PIPS
… it takes GBPJPY a little longer, especially if Cable is going bat shit crazy
[BSC] … onto tomorrow!
… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses, 😎😎
and my own Brinks armored truck” 💓!! … Onward & Upward!!
-vegas
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