SUNDAY UPDATE: MODELING MULTIPLE DIMENSIONS

 

“What any market really looks like!”

Crypto markets present us with a set of trading circumstances that are almost

ALWAYS present in the marketplace … for example, 1) high VIX, 2) ZERO central

bank manipulation of price and/or VIX, and 3) close to 100% of the entire

marketplace is spec dominated, especially leveraged perpetual futures, which is

where the vast majority of today’s volumes and liquidity lie … I’m sure there are

others, but this tops the list, and it’s gotten to the point where it’s pretty much

assumed by the trading public they’re always gonna be there … and that drives

trader perceptions and further increases VIX, cuz traders know how fast &

vicious these markets can move and bury them if they’re wrong, and so traders

react en masse … and that leads to highly tradeable markets with high

probabilities of success if modeled correctly.

The graphic in the header resembles what trading is really like in MULTIPLE

DIMENSIONS, not simply the 2D of price & time … enter in other critical variables

and what you’re missing in the 2D map, you can see clearly in 3D … now I know

what your thinkin’ … your initial natural inclination is to assume that VIX [volatility]

is gonna be the missing ingredient, but I’m here to tell you that’s a “dicey”

proposition not really backed up by the data, in traditional markets like FX, and

specifically GBPJPY … from the research I’ve done measuring ranges of M1’s

over different time periods and bull, bear, and dead market moves, there’s only

about a 10% - 15% difference in ranges from the biggest UP/DOWN days versus

dead days … in other words, you only can measure slight differences in ranges,

but the fact is the market either moves or it doesn’t, so measuring VIX and thinking

it’s the key to riches from scalping is a non-starter IMHO … you can assume from

the graphic in the opening header, that a “buy fuel” signal will come right before

the graphic goes parabolic upward … well, if it ain’t VIX what can be a telltale

sign of imminent price movement? … remember, in crypto pairs you don’t need

this, cuz it just complicates things, simply cuz those markets are crazy all of the

time most days … but in traditional manipulated markets, as central banks do

their best to control & manipulate VIX on behalf of the scumbag banks, what

measure is there that gives us the 3D pic directly below, which is what’s going

on “under the surface” of price & VIX movement?

And what you’re lookin at above is ACCELERATION in the polynomial curve

… this is the second derivative of the definite integral, the first derivative being

velocity … and where “buy fuel” shows up, even in markets that aren’t moving

much [hello Cable/Yen last week!], is where acceleration quickly changes at the

bottom … note, the moves under the surface aren’t affecting the top green layer

much, and so a casual observer looking only at the green surface says, “not

much going on here is there”? … meanwhile, under the surface there’s quite a

lot going on, and for scalpers, this area is of prime importance!

It should become readily apparent, that the crypto algorithm is a “SPECIALIZED

ALGORITHM” of the above GENERAL case, where the factors above are ignored

cuz VIX is so high, it trumps other variables and renders them moot … NOT SO

IN TRADITIONAL MARKETS! … here, we very much need to get a handle on

ACCELERATION, otherwise we’re stuck at the green surface with nothing cuz the

market can’t extend the range in either direction, and from all outward

appearances it appears nothing is going on … and then BOOM!, it moves out of

nowhere, but that move out of nowhere started with a bottom acceleration that

just kept going!

OK, good enough, are there any indicators that can accurately model

ACCELERATION? … YES there are, but only in an “INDIRECT” way using

“induction” logic and NOT “DEDUCTION” logic … every bit as powerful and

more statistically reliable as well … OK, what are they? … sorry, not gonna

publicly share this cuz it’s for people who have purchased the algorithm. [And

btw, an updated version of the CDSA [Crypto DragonSlayer Algorithm], taking

into account traditional markets like FX, and others, will be available next

weekend … all those who have purchased the CDSA, do nothing cuz it will be

sent automatically to your email address of record when finalized.]

Natch, having finalized the research & development of the GENERAL algorithm

case, starting this week I’ll be using it for the PAMM trading GBPJPY.

Directly below, the table of 20 Day Range MA’s for selected markets … and for

those interested, GBPJPY = 128.0 PIPS.

click on table to enlarge

Onto the week at hand, highlighted by Thursday’s BOE meeting, which is gonna

be interesting to say the least for GBPJPY … with the final piece of the scalping

algorithm finally in place [after so many hours of research you have no idea!], it

should be an eye opening week … outta here … “The future’s so bright I need

sunglasses!! 😎 … Onward & Upward!!

-vegas

RATE SHOCK VERSUS REALITY

 

“That moment when you realize Gubermint has screwed you over!”

Welcome to butt ugly! … it’s not nice to fool with the manipulators in gold and

expect to “buy & hold”, and then see profits … and so, you must be punished

for your crazy thoughts that FED policies aren’t in your best interest and that

you can profit off of their stupidity … “silly rabbit, Trix are for kids”! … and so the

rate increase hype is in full swing, with market expectations for interest rate

increases by the Lounge Lizards now at THREE HIKES IN THE NEXT 12 MONTHS

… yea sure … proving once again you can never let a crisis go to waste, and the

“Rally Protection Team” [RPT] is leading the way for the benefit of the scumbag

bullion dealers, who are now buying pet rocks back from you, sold to you much,

much higher … Congrats! … you’re a player in the “Comex Con Game”!

And for the third day in a row, gold is getting beat worse than a baby seal at a

Japanese whale hunt … by my ciphering with my shoes off, gold down about

$80 in 72 market hours! … and so far, I don’t see any signs of a “blow off”

bottom where sell stops get crucified, and instead it’s been a steady drip / drip

lower … after a run like this lower, given gold’s sordid history, there almost has

to be some sort of bloodbath at the bottom … and it’ll be spec blood hitting bank

champagne glasses going “clink” … “yes, Christmas has come early for the

scumbag banks”!

So what’s the next “crisis” government is going to create to stifle jobs, growth,

& prosperity? … and why not, with “Taliban Joe” at the helm everything he

touches turns to shit almost immediately … “Hey Dipshit, how did that SPR oil

release go for ya? … right, crude immediately rallied $2 … all they do and all they

know is how to “fuck up”, so what better group of misfits to usher in a new crisis,

so that the FED can have cover and keep tapering, and most importantly keep

the CNTRL-P machine going “Brrrrrrrrr” … cuz the dity little secret is, the math

says interest rates CAN’T GO HIGHER, CUZ IF THEY DO THE GIG IS UP FOR

THE U.S. … who the hell buys the debt when it’s in the QUADRILLIONS?

… “endless pandemics & crisis lockdowns as far as the eye can see! … life as

you knew it will never return to normal, they’ll see to that … dictatorship, for your

own good of course, is right around the corner”!

An important part of the “Crytpo DragonSlayer Algorithm” [CDSA], if you’re

scalping from the LONG side of the trading equation [I do], is to “walk away from

gold if the range for the day surpasses the 20 Day Range MA on the DOWNSIDE

[remember, gold is a quasi crypto pair!] … this is true in other crypto pairs as well,

like Ethereum [ETH], but there are “special circumstances” where that is ignored

in a pair like ETHUSD … not so for gold cuz of the dynamics of 1) the “Comex Con

Game” being run by the RPT & banks, and 2) the historical nature of gold in

seeing extremely “messy” bottom events … and trust me, I’ve seen “messy”

bottoms and nothing consistently beats gold in that department over the last 50

years of trading in the modern era … legit crypto pairs have their “moments”

[see May 2021], but that’s more of a “one off”, and not a consistent habit … with

gold it’s an “institutionalized” Grade A+ Clusterfark!

Currently, the 20 Day Range MA is at about $23 … that means a break of 1790 to

the downside sees me abandon scalping for the day from the long side … why?

… cuz you’ve entered an area of trading that can really hurt you if you’re wrong on

the scalp trade, far and above normal scalps … it’s simply a mechanism for

adequately managing risk properly, without getting an arm & a leg taken off with

a chainsaw in seconds … and a quick look at the daily chart, and you’ll see dotted

over the landscape enough “big wampum” days to the downside where your ass

has the heightened potential of getting handed to you shredded up … and for the

third day in a row, WE’RE THERE AS I WRITE … remember, first don’t lose, THEN

MAKE MONEY CUZ IT’S ALL THAT’S LEFT! … and for the most part, the same

goes with the other crypto pairs as well.

That’s not to say you can’t have small rallies, and maybe you can make a buck or

two … the problem is the risk when the price turns and the red spike shows up to

the downside, cuz the truth is in this part of the trading “Twilight Zone”, anything

often will happen and it won’t be pretty … there are no rules in here out in this

paradigm and you simply have to recognize that or they’re gonna take your

money away, so don’t play like there are some! … just walk away and save

yourself the heartache of getting caught on the turn cuz it can get “ugly” real

quick … and then what? … now what’s the strategy? … right, there ain’t one!

There’s a big difference between “bottom pickers”, and those that scalp from the

LONG side after price declines … and that difference is bottom pickers get

destroyed when price just keeps going down, cuz they pay no attention to the

concept of “buy fuel”, and most of the time have no idea how markets actually

function or why … it sure as hell ain’t “fun-durr-mentals”!, it’s order flow, and

where the scumbag banks are positioned.

On days like this, you’ll also see more sharp spikes higher that go nowhere

… 1) shorts panicking, and 2) banks selling the spike and fading the move … but

the spike itself cause many traders to think, “ah ha, finally here’s the bottom and

I can get long now for the move up! … well, on “normal” days that would be a yes,

but not in here on days like this, cuz nobody has any idea where this shit will stop

to the downside once the freight train gets rolling … and if you’re long you don’t

want to find out!

By CDSA rules, only one algorithm buy signal today in gold … TURNKEY PAMM

UP SLIGHTLY … we will usually get many more than one, but on big down days,

we’re forced to the sidelines when gold broke 1790 … now, only a move above

yesterday’s close [1804] will see me start to trade again from the LONG side on

algorithm signals, and we ain’t nowhere near that … and for the last hour as we hit

NOON in New York, gold is hugging the 1782 mark and looking like dogshit

… anything can happen of course, but this ain’t how bottoms in gold look … no

way, no how … will Mrs. Watanabe & Gal Pals, along with the “Chuckleheads” in

the Asian session attempt to move it higher tonight? … or do we see them puke

good & hard?

Over in crypto, “The Syndicate” UP APPROXIMATELY 0.3% trading ETH on

multiple algorithm buy signals, but it’s been a somewhat disappointing day

… every single one of my long scalps rocketed in mere seconds after I

liquidated … every one … and while I B. I. Itch about it, in reality I don’t care

much cuz money is money and keep stacking the stack higher … that’s what

it’s all about!

Before I go for today, I’m pleased with the trade in gold cuz there was no slippage

and latency on fills were very good … so no complaints … I give them shit when

they deserve it, and I also give them credit when it’s called for … I try to be fair. I

think gold will be a good quasi-crypto pair to trade going forward using the CDSA

… today kind of a special circumstance cuz it’s a big down day, but overall I’m

excited about trading gold with the algo cuz it models price & volatility behavior

better than anything I have ever created and/or developed … you just have to step

out of the way on big down days and let gold do “its thing”, cuz that’s when it

really hurts people who trade it … they treat everyday the same and you can’t do

that! … it will be really interesting to see how the Asian session starts tonight in

gold … don’t be surprised to see a big flush of the toilet followed by a very nice

rally, but if they can’t do it in the first hour it might come later in the day in mid

morning Europe or the start of New York trading, where the RPT is infamous for

“slam jobs” on futures around the 8 AM EST period … we’ll see.

… outta here … “the future’s so bright, I need sunglasses! 😎

… Onward & Upward!!

-vegas

SUE ‘EM! … SUE THEM ALL FOR DEFAMATION!

 

“Sue this corrupt asshole FIRST, for everything he has stolen!”

If you live in the U.S., how much more proof do you need to show yourself you

live in one of the most corrupt societies on the face of the Earth, after observing

the complete bi-polar trial of Kyle Rittenhouse? The “facts” versus the narrative

of the Looney Libtard Left that simply makes shit up as they go along … there’s

now “justice for the mob”, which the entire MSM & Dem party wholeheartedly

endorse, and then there’s facts to be totally ignored … and in the crosshairs is an

individual that they try and wholesale ruin with bullshit … they should have

learned their lesson with Nick Sandman, the Covington kid who they smeared and

has so far by estimates collected $100 million in settlements with plenty of other

lawsuits still continuing … this time, none other than “Taliban Joe” chimed in

during his candidacy for Preezy, calling Rittenhouse a “White Supremacist”

… “let this complete douchebag be the first to be sued Kyle, for defamation, and

take every last cent this asshole has stolen over the course of his 50+ years in

“The Swamp” … make ‘em pay Kyle for the outright lies & smears they made

publicly, simply for perceived political gain”!

Turning to crypto markets … “Asia flies, the rest of the world dies” … did you

think I was kidding? … been up since the European open some 4+ hours ago, and

it doesn’t matter if you’re on the “open order book” platform or Turnkey’s MT4

… pathetic trading action so far, with Asia putting in the entire day’s 20 Day Range

MA in ETHUSD on a reversal lower in just about 6 hours … going on the 5th hour

and I’m wondering if ETH can move Ten Bucks … well, that escalated quickly

didn’t it? … nothing like seeing Spicoli to stay at the Faculty Lounge, and then 6

minutes of total anarchy in crypto as the moonshot commences … so, back to

normal just from a different level is all … good luck trying to capture part of that

Grade A+ clusterfark! … “does it ever dawn on anybody that the “whales” simply

shove crypto markets into stops on heavy volume? … and is not the result

ALWAYS THE FRICKIN’ SAME? … ho hum, just another day where the “Noobs”

buy high, sell low, and come back for more”!

For a while now, I’ve been thinking about trading XAUUSD [spot gold] for the

PAMM, from the perspective that it’s nothing more or less than a quasi-crypto

pair … why would gold at $1800 be any different than Ethereum [ETHUSD] was

when it was $1800, besides the obvious sell side manipulations by the FED?

… granted, ETH is approximately 10X - 15X times more volatile than gold in price

on a daily basis, and gold trades more like  Bitcoin Cash [BCCUSD] in terms of

chart movement and minute-to-minute volatility … what has pissed me off to no

end has been Turnkey’s scumbag bullion bank LP’s, who play the “bait & switch”

game with the bid/offer spread, but running the statistical numbers shows

anything equal to or under $0.25 - $0.30 for a bid / offer spread is good trading

conditions … obviously, the lower the better for us, and today sees the gold

spread around $0.18 - $0.23 with occasional trips a few pennies up/down from

that … and as most traders should know, a few pennies in gold isn’t going to be

the determining factor in whether or not you’re consistently profitable … currently

this week, the 20 Day Range MA is approximately $23, which if you think of gold

as $0.10 = a “tick”, that’s 230 ticks per day, with the majority most days coming

from 7 AM EST - 2 PM EST [7 hour day].

It’s not too hard to think of gold as crypto, cuz it mostly attempts to do the same

things … the real $64,000 question for me has been, how does it respond to the

“Crypto DragonSlayer Algorithm” [CDSA] in terms of modeling gold behavior as

if it were a crypto pair? … cuz make no mistake folks, CDSA KILLS CRYPTO! … and

the verdict so far is, gold has been volatile enough so that the algorithm works

exceptionally well trading it … OK, if the spread + RT commish is good to

excellent, then why not trade it and treat it as a crypto pair? … I can’t see any

reason why not! … tonight sees the PAMM’s priorities go first to gold and then to

ETH … between the two, something is moving we can trade and do exceptionally

well … while lately ETH has seen spreads blow out on any price movement

[including today, where the insanity led again to a spread over $20 at one point,

which is plain fucking stupid!], there are times when that doesn’t happen … in

gold, there are a few times the scumbag bullion banks get greedy and shove the

spread above $0.40 … not very often but it happened one day last week … my

point is, between the two we should be good to go for the PAMM and start

catching up to “The Syndicate” … sitting around waiting for Turnkey LP’s to

behave in any one market is bullshit, and I think watching the “combo” is a great

idea for our trades … the way the cookie is crumbling lately, that means gold is

going to be traded, while ETH will see trades occasionally … GiddyUP!

I want people to understand, this isn’t something “whimsical” in scope, but

instead backed up by statistical data when you treat gold as a quasi-crypto pair,

and the trading results as they come in will hopefully prove that! … trading gold

from a vastly different crypto perspective is key, and using the “premise” of the

algorithm along with its parameters is vastly different than trading gold under

normal conditions and treating it like a normal financial product … you can’t win

under those set of circumstances, cuz you’re the Chump at the craps table … but

what if you were the casino? … well now, that kinda changes things doesn’t it?

… and seeing the difference in created algorithms I’ve developed, the old ones

can only carry you so far and then they fail … but in a volatile environment there

are immutable laws of physics that can’t be messed with, cuz if they were messed

with the market in question wouldn’t be “volatile” and you wouldn’t be trading it!

… NO trading in the Turnkey PAMM today, where the ETH, BCC, & LTC spreads

were simply “stupid” far too often than not, and I’ll pick up gold tonight and at

the European open … more trades, heavier volumes, and more importantly

bigger profits lay just ahead … stay tuned!

For “The Syndicate”, multiple trades today in ETHUSD and we’re UP

APPROXIMATELY 0.6% … simply scalping, capturing the “vig” when possible,

and letting somebody else reach for my order, and then pay me! … no mystery

here, just grinding along and dragging participants to “MillionaireHood”. 

In my haste to post the CDSA yesterday, I forgot to publish the 20 Day Range

MA’s … no worries, there isn’t much change to any of the markets this week,

and I’ll have it back this upcoming Sunday on the blog update.

… outta here … “the future’s so bright, I need sunglasses! 😎

… Onward & Upward!!

-vegas