The answer to that question is “not much”!? … certainly, in gold, crude oil, and
“Stock Bellies”, the propensity / probability for walls of panic buying, followed
by panic selling are great … thanks to the Lounge Lizards at the FED since the
15 years since the 2008 financial meltdown and subsequent exponential
expansion of financial bubbles, the amount of money sloshing around in these
markets is in the hundreds of billions, if not trillions … OVER 50% OF ALL
DOLLARS IN CIRCULATION HAVE COME ABOUT SINCE 2020, and where the Hell
do you think most of it ended up? … sure wasn’t to “main street” … it went to
scumbag banks and other financial institutions, and from there into markets
… and so all we get is either panic buying or panic selling, with wicked turns at
the top / bottom, and very little if any “trading” in a traditional sense … and the
problem with this should be obvious … “everything is great until the turn comes,
and then minutes / hours of trading action get taken out “el quicko mucho!”
… and if you’re caught the wrong way on a trade, you’re gonna be buying the
green spike up or selling the red spike down, which is an open invitation for the
scumbag LP to mug, rob, and then rape you with a shit fill off the market, cuz
they can fill you ANYWHERE THEY WANT TO … and in particular, gold and crude
oil are infamous for wicked spikes from Hell out of nowhere … “Stock Bellies”
not as bad, but that’s relative, cuz “not if/ but when!” you get into the back “6”
of the “88/6/6” trading paradigm, sell stops can be especially wicked and off the
market.
For gold, crude oil, & the DOW30 [when appropriate], the “Trading Ratio” [TR]
needs to be at a bare minimum of 3, but I feel more comfortable with it at 3.5 or
higher … and the reason is quite simple … all 3 of these markets have relatively
above average slippage, and the bid / offer spreads are higher … if the action
isn’t there, the problem doesn’t arrive when everything goes profitably, the
problem comes when shit heads South … now, that spread is gonna leave a mark,
and if slippage is involved [especially on a spike from Hell], you’re gonna get cut
& bruised GUARANTEED … bottom line, unless the trading action is there, the
“Loser Formation” shows up and now what? … caught in chop with nowhere to
go and praying for some volatility … “hope and prayer isn’t a trading strategy!”
… gold a perfect example today, with a very quick & nasty $5 drop around 17:40
server time [Coinexx], which took out approximately 40 minutes of a crawl up in
about 15 minutes with a nice “Thelma & Louise” screwing of sell stops … from
there it can commence to crawl up and do it again … TR of barely 3 the entire
time, and it ain;t enough to get me interested … ditto with crude oil … meanwhile,
DOW30 & “Spoos” fiddle fart around in obscurity looking for a trend … VIX in the
“Stock Bellies”, as approximately measured by the 20 Day Range [Daily & NY
session for DOW30], is dropping fast.
Most days aren’t gonna see TR’s strong enough to consistently trade any of these
day-after-day continually … “the stone cold truth is, the manipulators [TBTF &
TBTJ scumbag banks] at the behest of the scumbag central bankers won’t allow
for consistent volatility in these markets" … remember, their goal is too enrich
themselves and screw specs of all stripes, and they do that by “scumbaggery &
fuckery” with VIX … they know & understand full well the trading problems
affecting most specs [long or short it doesn’t matter, they hate everybody who
trades], and they are gonna full throttle in your face the pain when they can.
That leaves an FX pair like EURJPY [there are others as well] … it is the ability to
get in and out when you want WITH RAZOR THIN SPREAD & SLIPPAGE [IF ANY]
AND VERY FAST LATENCY ON FILLS … get that, and in a trading market like any
FX cross, but especially the YEN crosses over the last year, the version 2 trading
algorithm can beat the HELL out of the banks, not only cuz of VIX that allows for
us to get profits, but also the fact that mental stops aren’t where anybody else is
gonna be … we don’t want people riding our tail!, and if there isn’t anybody else
[relatively speaking] with us, we have the best opportunity to escape slippage
when the occasional “false positive” shows up … if we had a 12 cent spread in
gold, or a 1 or 2 penny spread in crude oil, and we had excellent latency along
with ZERO slippage, then you could do the exact same thing in those markets as
you can with any FX cross on a decent institutional server … but we ain’t gonna
ever get that … the LP’s know & understand that if they offered that, traders like
me would show up and scalp the living shit out of the market and pick these
hyenas off like a marine robbing a kid for his/her lunch money … and they simply
will not allow for that to happen.
That’s not to say there aren’t “moments” in FX crosses with razor thin spreads,
where it can get tricky, BUT THE VOLATILITY OF THE CROSS IS USUALLY MORE
THAN ADEQUATE TO ESCAPE THE SPREAD AND MAKE MONEY … as long as
the spread is between 0.0 - 0.9 PIPS, a TR of 2.5+, along with a decent 20 Day
Range MA [greater than approximately 70 PIPS] and call it whatever you want
… scalping / day trading, whatever … use the semantics that make you feel good,
cuz the fact of the matter is, I WANT THE MOST MONEY FROM A TRADE IN THE
SHORTEST TIME POSSIBLE … hang around these markets over extended periods
of time, and “bad shit” happens when you overstay your welcome and get greedy
… ONE OF THE BIGGEST AND MAIN ADVANTAGES OF THE CROSSES, IS YOUR
VOLUME TRADES CAN BE MUCH, MUCH HIGHER than they can be in the other 3
markets [CFD’S in Gold, DOW30, and Crude Oil] … so if you’re thinking the
“big moves with the big money” can only happen there, you’re dead wrong!
… raise your volumes in the FX cross and you’ll get the kind of money making
opportunities, WITHOUT THE WARTS, the other markets share.
After yesterday’s clusterfark in FX, thanks to the BOJ, today is more “normal”
… tonight sees inflation numbers coming out of early Japan, so it could get
interesting before the Asian open … I found a “bug” in my v2 trading algorithm
from yesterday’s hectic action, and today sees me make the necessary
adjustments for optimal opportunity and profitability … that means the final
version 2 trading algorithm is ready to be released on the upcoming Sunday
blog update … I was gonna wait, but there’s no need to wait … it is what it is.
One trading algorithm buy signal today in EURJPY … PAMM UP SLIGHTLY
… there were more signals than that, but as I said earlier, I used today to make
some final algorithm changes that were necessary … that’s done, time to make
hay! … I’m more than happy with the minor adjustment I made in algorithm
parameters, but it took me most of the morning to get it finished … I’ll be going
full throttle starting tonight in Asia … 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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