SUNDAY UPDATE: ALGORITHM & MARKETS REVIEW SUMMARY

 

“Pay ATTENTION! … I’m gonna show you how NOT TO BE THIS GUY!!”

“Markets” [cough, bullshit, cough] collectively trade between $8 - $10 TRILLION

DOLLARS OF NOTIONAL SHIT EVERY SINGLE TRADING DAY! … and yes, that’s

a lot of money … when is the last time you heard of any of these TBTF [Too Big

To Fail] or TBTJ [Too Big To Jail] scumbag bank LPs getting in trouble financially

from so called “trading activities”? … derivative exposure worldwide is easily

over $1 - $2 QUADRILLION DOLLARS, so how is this possible, cuz they sure as

Hell don’t have that kind of capital to cover losses?

And asking these kinds of questions, should lead you down the path towards

some REAL CRITICAL THINKING about markets, many of you don’t want to either

admit or understand … not that it’s entirely your fault, cuz unless you’ve been

eyeballs deep inside the financial trading matrix your entire life [like yours truly],

you’ve been spoon-fed horseshit propaganda by Wall Street and the financial

MSM … nothing on the surface is what it appears below!

Banks have positioned themselves to be [whether spot, futures or CFDs] the

middleman in every single financial market transaction that takes place, but they

never suffer losses you ever hear about … forget billions here, we’re talking

TRILLIONS! … does this not seem strange and odd? … a couple of years ago,

one J. Dimon of JPM bragged to Leslie Stahl on “60 Minutes”, that their trading

desks do $2 TRILLION DOLLARS of trading every trading day! … well, you

shouldn’t be shocked when you accept and understand how they do it! … at the

center of it all is the “protection racket” made up of POLS, central bank

Apparatchiks, & regulators … with them paid off, there’s no way you can lose,

and there’s ZERO chance anything is ever gonna change short of the revolution

that sees heads removed from shoulders.

Every large bank has multiple “prop accounts” located in offshore tax havens

like Belize, Panama, Nevis, British Virgin Islands, Mauritius, Seychelles, etc., set

up by offshore law firms [most definitely NOT incorporation services], where the

beneficial owners are key players at the bank, along with some officers & maybe

top traders … and whenever there’s an order to be filled, these prop accounts

will front run the order for guaranteed profit … from the banks accounting

perspective, it’s just “fill ‘em & bill ‘em”, no shenanigans here … the real money

is made in the prop accounts, and part of that money gets shoved up the ladder

via “skim” to Asshole crooks like the Biden Crime Family [POLS], FED Lounge

Lizards & staff ]Apparatchiks], and some sharp eyed attorneys at SEC or maybe

Treasury [regulators] … what’s your Bitcoin e-wallet address or would you like

cash in a suitcase?”

What you need to understand from this scenario, is how any of these so called

“markets” really operate … cuz the ONLY THING THAT MATTERS IS “ORDER

FLOW”, AND HOW THESE SCUMBAG BANKS HANDLE & ULTIMATELY FADE

THAT ORDER FLOW! … there’s your market Skippy! … and that market moving

“order flow” we ain’t ever gonna get cuz it’s proprietary to the banks order book,

and if you think they’re gonna share that with anybody you need psychological

help … what we end up getting is garbled bullshit volume values that hide that

information, so it’s of dubious quality & validity … of course, cuz we’ve learned

over the last 5 - 10 years from both civil & criminal court cases, mostly against

JPM, Deutsche Bank, HSBC, Barclays, Credit Suisse [before they went tapioca],

all of these scumbags talk & chat with each other constantly and share order

flow information in their attempt to make the “prop account” trading AS

PROFITABLE AS POSSIBLE! … and of course, this important spec [collective

individual, hedge fund, or institutional] order flow can and WILL CHANGE,

OFTEN VIOLENTLY … given central bank manipulators doing their

“Hoover Dam” best to thwart volatility [VIX], you have to remember that these

Assclowns understand market sentiment, psychology, and can read charts just

like you can … more importantly, they know where your puke points are

[a/k/a stops] cuz most likely you’re over leveraged, under funded, and puke at

the drop of a hat, and they go for them cuz that’s where their best prices for

taking profits and/or fading you! … well now, I don’t remember any of this in

B-School, do you?

As I’ve said before, I have ALWAYS been a scalper / very short term trader my

entire career … I’m not a “position” trader holding shit over days or weeks

… and I’m not a “swing trader” either, looking for MOMO over hours into the

next day … I attempt to pinpoint changes in 1) order flow, 2) changes in very

short term trend, that creates at its formation either “buy fuel” [longs] or

“sell fuel” [shorts] that scumbag banks EXPLOIT TO THE FULLEST, AND

THEIR PROP ACCOUNTS FRONT RUN … this allows the banks to WORK FOR

YOU, NOT AGAINST YOU, and puts you in a profit position with a very high

probability … rinse / repeat, come back again tomorrow! … and this is what

the algorithm, as presently constructed, does to model price behavior

BEFORE the collective spec community spots it and the banks exploit it

… seconds make a difference!

In a “fair & honest”” trading world, that’s all we would need, but the world is far

from that, and we have to deal with the reality of “Scumbaggery & Fuckery” from

the brokerage house community, as well as fully understand how a brokerage

house makes its money off of clients and customers, otherwise they’re gonna

gut you like a fish for dinner! … and like Turnkey before it, Coinexx [ALONG

WITH MANY OTHER HOUSES AS WELL] employs the “variable bid/offer spread

bait & switch”, where they play all kinds of nefarious games with bids & offers,

while pretending they just reflect “market conditions” … BULLSHIT! 

Slippage is “baked into the cake” and the house has side deals with favored LPs

to split the theft … if you think brokerage houses can turn a profit with pitiful

commissions, you’re delusional … add to that, IMHO a solid majority of houses

sell customer trade details to LPs for millions of dollars per year … so, how

does your brokerage house make their money?

And this becomes imperative to know & understand if you’re a “scalper”, cuz

tenths of a PIP or tick makes a “bigly & yuge” difference to your bottom line over

time … a lot more than you might think … and from what I’ve seen and

experienced, even with some shortcomings that every single house on earth

has in some form, THE BEST HOUSE TO SCALP TRADE IS IQCENT … as I have

stated before, EURUSD, USDCNH, BTCUSDT [Bitcoin], ETHUSDT [Ethereum], &

XRPUSDT [Ripple] ARE THE BEST MARKETS YOU CAN SCALP TRADE WITH THE

BEST CONDITIONS [2 FX dollar pair markets, and take your pick from 3 crypto

pairs] … I would add, however, that their SP500 CFD, with a 0.5 index bid / offer

spread and no commissions, and very little if any slippage, is most likely

borderline scalp trade material.

Again, as I have previously stated here on the blog, I know how IQCENT makes

its money from traders … quite frankly WITH ZERO COMMISSIONS, with a 0.2

PIP spread in EURUSD, A 3 PIP spread in USDCNH, & 1 tick spreads in crypto,

there isn’t any place else on earth that comes close to these “razor thin

LOWEST costs”! … splitting pennies with the LP ain’t gonna cover costs let

alone make gobs of money! … and regardless which market, cuz it applies to all

of the 5 mentioned above, the LP employs the same tactics for each of these

markets, and splits in some way the proceeds with the house … and that tactic

mainly uses SPIKES UP [GREEN] to add a tenth or two or three of a PIP on FX,

and a 1 - 5+ ticks to crypto to the offer, OR SPIKES DOWN [RED] to subtract a

tenth or two or three of a PIP on FX, and a 1 - 5+ ticks to crypto to the bid … so

if you buy the up spikes you’re gonna pay for the privilege, and if you sell the

down spikes you’re gonna pay for the privilege … in other words, a “TAX” on

wrong trades! … and since most traders lose money, from the house & LP

perspective, what’s not to like here, especially since on the surface it appears

to be the absolute best? … well, it won’t be if you buy spikes up or sell spikes

down, you’re gonna pay just as much as people do at Coinexx on every trade!

And until gold gets its ass in gear some day & ranges expand from where they’re

at now into the upper 20s or above $30+ area per OZ., and if the spread holds

[a very big “IF”!], there aren’t any markets at Coinexx you can scalp … sure,

sometimes if you get a market that roars in your profit direction you’re able to

“ring the register”, but overall that doesn’t happen often enough to make up for

the costs they are gonna pile onto you via slippage and commissions … and

therefore, trades have to be slightly longer in scope than true scalps enjoy

at IQCENT.

Directly below, the 20 Day Range MAs of selected markets for the current week

… I’ve added XRPUSDT to the table, since I trade it for “The Syndicate” at

IQCENT … it also happens to be “The Mrs.” favorite market to scalp, cuz 1) it

moves, 2) it moves more in the NY session [12 - 24] than the first half of the day

[00 - 12], thus eliminating the obvious need to move to frickin’ Thailand to trade,

3) it’s slightly more stable [relative] than Bitcoin or Ethereum, and 4) now that

the SEC has gotten its ass handed to them in court and XRP has won, this

market while not entirely devoid of political influence and “risk on / risk off”

[RORO] protocols influencing other more traditional markets, doesn’t react

much to reports or Apparatchik musings … it generally correlates with Bitcoin,

but only generally … it’s its own market! … and as you can see from the table,

the “median” is much closer to the “average” than BTC or ETH.

click on table to enlarge

Let’s take a “summary” look at the different market groups and what they have

to offer ... [excluding crypto]

FX

I’m only looking at 4 FX pairs … 1) EURUSD, 2) GBPUSD, 3) USDCNH, &

4) USDCAD … non dollar crosses given the paradigm of FX trading today are a

waste of time, where only 20% of the time are they worthwhile to trade, and 80%

of the time they will lead to trouble … currently neither USDCAD nor USDCNH

have high enough NY session 20 Day Range MAs to justify trading them

… USDCNH as a scalp market at IQCENT, & USDCAD as a “day trade” market

… either crypto [3 pairs I’ve listed, where IMHO XRP is best right now] or

EURUSD makes sense … at COINEXX for the PAMM, my choice is GBPUSD for

“day trading”, but that can change to any of the other 3 should conditions

change markedly … I’ll keep readers posted … you simply cannot scalp markets

at Coinexx cuz of slippage & commissions.

STOCK BELLIES [SP500, DOW30, & NDX100]

The SP500CFD at IQCENT is a borderline scalp market … the other 2 have too

high bid/offer spread [DOW30 @ APPROXIMATELY 2.5 - 2.8 INDEX POINTS, AND

NDX100 @ APPROXIMATELY 1.7 - 2.7 INDEX POINTS] … if your total cost to

trade SP500 CFD is less than or equal to 0.5 index points, you’re good to go at

any house … anything above that threshold and you’re getting ripped off … the

problem with any of these 3 markets at Coinexx is horrific slippage, even when

markets are relatively calm … and when they start moving, fugetaboutit!, the

slippage will choke a hippo!

PRECIOUS METALS [GOLD, SILVER]

No silver market at IQCENT, and their gold market has too high of a spread

[30 - 35 cents per OZ.], so these aren’t scalp markets … even though Coinexx

has an approximate 10 cent bid/offer spread, and round turn [RT] commissions

are roughly 2 cents per OZ., the problem IS AND MOSTLY LIKELY ALWAYS BE

SLIPPAGE! … often times horrific … and slippage on stops [buy or sell] IS

ALWAYS GONNA BE A NIGHTMARE … think absolute bullshit fills and then

multiply times any number between 5 - 10, and that’s how bad it can be!

… ranges need to get a lot higher than they are at now for this market to

be viable.

ENERGY [CRUDE OIL, WTI OR BRENT & NATTY GAS]

If only somebody in this world would produce a CFD for WTI or Brent that has

a “fair & honest” bid/offer spread that stayed CONSISTENTLY STABLE BETWEEN

1 & 2 CENTS, WITH EITHER NO COMMISSIONS OR SUPER LOW, AND DIDN’T

HAVE RIDICULOUSLY HIGH MARGINS … why can’t we have this!? … Coinexx

plays their horseshit “bid/offer roulette” every single fucking day, and they love

to make you think the spread is 1 or 2 cents … then you trade it and see a 3 or 4

cent slippage tax, or a fucking “mystery tick” bid lower as you liquidate, or a

“mystery tick” higher offer as you buy, and you immediately know you’ve been

bent over the barn railing … they steal from your wins and they pour salt in that

stab wound loss … stay away! … over at IQCENT, they offer Brent, but there’s a

5 cent bid/offer spread, which is fucking ridiculous … other houses that I’ve

looked at have their problems from very high margin requirements [IG], and the

“wrong bet tax” making quotes on the bid/offer jump more than the market is

actually experiencing [XBTFX] … I’d love to trade crude, but the reality is I can’t,

neither as a scalp or a day trade … there just isn’t the will among anybody out

there to offer it fairly & honestly, they all want to gouge the shit out of us! … and

it’s even worse in Natty Gas!   

Onto the week! … OUTTA HERE … “The future’s so bright I need 2 pairs of

sunglasses 😎😎, and my own Brinks armored truck” 💓!!

… Onward & Upward!!

-vegas

PATIENT BEAR

 

“The essence of successful trading!!”

We start off with a very basic premise, which is often overlooked by traders of

all experiences, no matter which market it is they call home … “what is the

“purpose” of patient bear sitting there? … is he trying to find a date? … is he

looking for a friend? … why is he just sitting there? … well, he’s sitting there

cuz he’s waiting to eat!” … so when you tell me you “trade”, what does that

mean exactly? … trade what? … how? … what parameters of price and TIME

do you use? … do you even know? … or do you just say, “I wanna make money

trading!?” … great, but that ain’t a purpose or a premise, THAT’S A

MANIFESTATION OF TRADING RIGHT … IT’S THE END RESULT, that’s all, and

it ain’t gonna get you to any finish line you’re gonna like!

The scalping algorithm, as currently constructed, will get you successfully to

the finish line! … meaning, it will make consistent money in whatever market

you're attempting to scalp, as long as you abide by the rules and choose markets

that can be scalped or maybe bleed over into what’s known as “day trading”

… some markets are better than others, and for sure some houses are better

than others depending on what market you’re trading … and then there are

markets that are a mess, cuz presently constructed and traded by LP’s that are

total thieves and crooks, and you are definitely behind “the eight ball” when it

comes to trading them … gold comes to mind quickly, but so do other markets

that have high spreads + slippage, and are inconsistent in terms of session 20

Day Range MAs or trading session “medians” that are vastly different in terms of

movement from the “average” … and lately, that spells Bitcoin and USDJPY,

where the “median” is quite far away from the “average” … from day-to-day,

you never know what you’re gonna get, a sleeping dead giant or a fire breathing

dragon Hellbent on destroying you with volatility.

Either this weekend or next, I’ll have a new scalping algorithm version manual

posted with all of the blog posts over these last weeks incorporating all of the

information into a Adobe pdf manual, for an easy read & implementation by

anybody that wants to make money trading … but remember, this is “scalping”

and/or faster “day trading”, which might be a little slower than a true scalp, but

that nonetheless will make you consistent money … this ISN’T POSITION

TRADING, OR SWING TRADING THAT LASTS HOURS … don’t make this “rocket

science” when it ain’t, and don’t slam round pegs into a square hole … this is

TRADE PARAMETER SPECIFIC, and if you can’t accept that, then don’t do it!

This is the easiest way I know of to make consistent money trading … the

hardest part is to pick your market [s] and the brokerage house, and to

understand how the brokerage house makes its money … trust me [I’m a

professional, remember?], it ain’t from commissions … all of these brokerage

houses pay anywhere from $15,000 - $25,000 PER MONTH FOR INSTITUTIONAL

FEEDS on the markets they offer … and they got to cover that each and every

month! … so you’re gonna sit there and tell me that $1 OR $2 commissions per

side per 1 lot volume is gonna make that up? … no, they either sell ALL client

information [except personal] to a bank or HFT for millions of dollars per year,

OR they have a side “deal” with one LP, where all fills are off the market and they

then get a percentage of said slippage from the LP, OR BOTH SCENARIOS

… IMHO, IT’S BOTH!, for the majority of offshore houses, where they are in

“friendly” domiciled jurisdictions where they can do whatever the fuck they

want, whenever they want, and no questions are ever asked or entertained

… I’ve already explained numerous times on the blog how IQCENT makes its

money as a brokerage house, and summing it up, IMHO they both sell customer

information [except personal details] AND get part of the slippage on fills when

their markets move … so, if you buy on an up green spike in EURUSD, you’re

gonna pay an extra 1 - 3 tenths of a PIP for the privilege, and if you sell on a red

spike down, you’re gonna pay the same 1 - 3 tenths of a PIP for the privilege

… nice work if you can get it! … but, if you use the spikes to liquidate in your

profit direction, you can reap this extra price and avoid paying the “tax” for

being wrong! … but you have to “ring the register” WITHOUT HESITATION, or

you pay the Piper! … and quite frankly, I’m pretty sure every other brokerage

house does this to one extent or the other in some way, so there’s not much

difference between offshore houses IMHO.

And while I’m not going to reiterate the components or the rules, cuz 1) I’ve done

so already in previous blogs, and 2) the soon to be manual will have them in

detail with examples, let’s take a “snapshot” look at different markets people

should be interested in trading … in succession, EURUSD, EURAUD, BTCUSDT

[NOTE: BTCUSDT has RM=3 on it as well], XRPUSDT, SP500, & NDX100, from the

NYSE open [16:30 server time] to Noon EST [London Fix] … AND THIS IS ONLY

2 ½ HOURS OF A TRADING DAY!

click on ANY chart to enlarge

All of these markets are on the MT4 at Coinexx, live or demo makes no difference,

with the appropriate “vegas mq4 code” for support [below price] and resistance

[above price] via 4 volatility levels, RM=1 [lowest] to RM=4 [highest], which are

ALL AVAILABLE IN “DOWNLOAD LINKS” for you to download and install on your

MT4 … all the charts for the markets listed above have RM=1 & RM=2 on the m1

candlestick, which will cover 99.5%+ of all market action outside of market

reports which may distort prices on gaps … EURUSD, BTCUSDT, & XRPUSDT

have the very best conditions at IQCENT … you can’t beat IQCENT FOR THESE 3

MARKETS WHEN IT COMES TO SCALPING! … PLAIN & SIMPLE, IF YOU TRADE

THESE 3 MARKETS ANYWHERE ELSE YOU’RE THROWING MONEY AWAY!

The others, it just depends on the spread, the commissions if any, and slippage

on fills … wherever you go, make sure you’re getting the very best deal the

market offers, otherwise don’t trade there.

Looking at the above market charts, can anybody beat the support / resistance

levels of RM=1 & RM=2, which by the way are all “Cardinal Cross” or

“Diagonal Cross” values on Gann’s “Square of Nine” [SO9], IN ANY OF THESE

VOLATILE MARKETS? … as I have repeatedly pointed out, these are not levels

to buy/sell for entry, they are levels for LIQUIDATION FROM THE PROFIT SIDE

OF THE EQUATION ONLY … and since I touched on the SO9, the ZERO LAG MAS

are 9, 19, & 96, which given the SO9, is shown below.

click on image to enlarge

A very nice triangle of support / resistance highlighted by this triangle among

“Cardinal Cross” and “Diagonal Cross” interplay … and this is the theoretical

premise on which the scalping algorithm is based, not something I pulled out of

my ass @ 1 am while talking with the dog [no offense Fido] and threw up against

the wall … there’s a reason why it works so well, and Gann nailed it about 110

years ago!! … [although, Gann was interested in hourly charts … but since

everything is fractal in nature & scope, it works equally as well in the m1

domain.] … as well, if you study these charts [I’m hoping you will], you’ll notice

that in strong uptrends / down trends, the ZERO LAG MA [ZL] needs more than a

few m1s to change slope trend … a weak trend, and the slope changes almost

immediately! … and as you’ve probably figured out by now, this 96 period ZL is

the basis for everything else in determining and making scalp trades, although I

make the case in the manual that’s coming, that for “Stock Bellies” it’s a little

different cuz of the “88/6/6” paradigm in which it operates and trades, the only

such group of markets that has this … I also make the case in other markets,

specifically EURUSD & EURAUD, or any other cross you’re looking at, that

trading both sides of the market makes sense when the 96 period ZL has a

strong slope either up or down … when the ZL slope is “flattish”, you have to

stick to one side of the trade or the other, you can’t go back & forth on your

scalps cuz you run the risk of getting chopped to death from the scumbag

bank LP.

When “flattish”, choose always long or always short, OR SIMPLY LEAVE IT

ALONE UNTIL A SLOPE SHOWS UP, and go from there … when the slope is

strongly positive or negative, go with the flow or sit out one side, the choice

is yours! … EURUSD specifically, is a scalper's dream when conditions are

right, and with NY session 20 Day Range MAs almost above 70 PIPS, the scalps

are certainly there!

I’m in my second day of getting my “sea legs” in EURAUD … can’t learn much

from yesterday cuz the session range was so big, it blew the range MAs out of

the water … Hell, anything almost works if you get enormous ranges, but the

consistency isn’t there, something the FX Apparatchik manipulators know oh

so well … get back down to the session 20 Day Range MA or lower, and it’s an

entirely different story in trading land … but I’ve seen enough to know, that the

algorithm presently constructed is as “good as it gets” in terms of calling the

shift in order flow that scumbag banks use to screw specs blind … and quite

frankly, if you don’t get them to work for you via the algorithm, they work

against you, and how’s that turning out for ya? … and the proof I’ve given you

over several markets is above! … of course, once a month we get the NFP

Idiocy, and about every 2 months we get that PLUS the central bank “trifecta”

of the FED, ECB, & the BOE with interest rate decisions … don’t care much for

the BOJ cuz they’re fucking insane, and the RBA does all of its shit during the

Asian session, so who basically cares? … AUDUSD is out of the way when

Europe opens, and they’re all asleep for the U.S. session, so there isn’t gonna

be any surprises from Aussie land. 

And right now we’re in the heart of data dumps & central bank bullshit, with the

Apparatchiks out of the way, and all that’s left is tomorrow’s math whiz kid lies

and bullshit via NFP to complete the circle … no trades today for the PAMM in

EURAUD, it was a day of study and preparation in this market, as we get ready

for tomorrow’s blitzkrieg and beyond … I like what I see and I like how this

market responds to the algorithm model … quite frankly, night & day different

from any of the YEN crosses, and yet AUDUSD in the denominator has enough

up/down to compete via the numbers with any other market, even YEN … not

that much difference, but a “bigly & yuge” difference in how they trade and react

to data, POL bullshit, and of course central bank Apparatchiks … over

@ IQCENT, some really good scalp action in EURUSD, and “The Syndicate” UP

APPROXIMATELY 0.4% ON LIGHT VOLUMES … come next week, after NFP

stupidity is over and done, I’ll be increasing my volumes for scalps @ IQCENT

… with ranges [both daily and NY session] heading higher, now that the FED is

generally believed to have finished tightening, it makes for “el mucho”

indecision in EURUSD … and we see that in the m15 and daily chart, where

one day you can’t get an uptick to save your life, and 15 minutes later it’s the

other direction where for hours it can’t go down 3 PIPS! … this presents

opportunities for scalpers, as well as dangers … the danger being if you get on

the wrong side of this puppy, it can go farther easier than you have money in

your account chasing it with losses! … the algorithm keeps you on the

“RIGHT SIDE” of the market for your scalps, and gives you the highest

probability for profitable trades, that quite frankly casinos in Las Vegas would

kill for … all the while, letting the scumbag banks work for you, NOT AGAINST

YOU! … onto tomorrow!

… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses 😎😎,

and my own Brinks armored truck” 💓!! … Onward & Upward!!

-vegas