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

MAPPING ACCELERATION IS ALL THAT MATTERS!

 

“What I want from a buy/sell … all the rest is coin flip crap!”

In some metaphorical sense, I feel like the highly trained 19th century physicist, 

at the turn of the 20th century, that’s handed Einstein’s work on relativity 

… two thoughts immediately cross your mind; 1) “wait … wat!?”, and 2) after 

the shock wears off, “it’s so obvious, why didn’t I think of this before”? And 

suddenly, it dawns on you what the potential ramifications are going forward.

As many of you may know, I now have extremely sophisticated & strong 

mathematical software at my disposal [Ph.D. level stuff, and truth be revealed, 

I’ve only begun to “scratch the surface” of what this “bad boy” can do and 

deliver], along with formatted data on every MT4 market going back many 

years … of course, to pay for all of this, I had to raise Cousin It’s rent for living 

in my garage, and charge CoS [Chief of Staff] Milton Waddums more for his 

constant supply of red staplers ... but hey, “no pain, no gain” as the saying goes. 

[Note: the dog & the Mrs. refuse on constitutional grounds, any sacrifice 

whatsoever, and continue to deficit spend me into oblivion.]

If I stopped 1,000 traders on the street and asked them, “what do you want to see 

after entry into any position”?, I’m pretty sure the answer from all of them 

would be some manifestation of, “well, I’d like to see the position start to profit 

rather quickly”. Ok then, where exactly does that acceleration momentum occur 

to give you max profit potential in the shortest time possible? “And that, dear 

readers, becomes the $64,000 question”! But, and it’s a very big “but”, only after 

you identify the markets that have enough intraday volatility to make the effort 

worthwhile, cuz if you’re in the wrong market, you’re wasting your time!

Now, I’m pretty sure a lot of you are gonna be somewhat surprised at the 5 

markets the math clearly shows are the very best, for achieving the max 

acceleration of force [buying for up moves or selling for down moves] at the 

start of a position as momentum turns in any market, and either shorts or longs 

panic rather quickly and aggressively … remember, this type of “force 

acceleration” or “force volatility” is completely different than how markets & 

especially other traders typically view the term “volatility” when referencing or 

talking about it. Large daily ranges are helpful, but in and of themselves, they 

aren’t particularly useful or measurable in pinpointing max acceleration when 

we need it most.

The 5 top markets in terms of “force volatility”, as I’ve defined it above, in 

order of significance and impact, and taking into account spreads, potential 

slippage if any, and the opportunities during the prime hours of trading for 

literally dozens of multiple trades, are 1) Brent Crude Oil, 2) DAX30 stock 

index [Germany], 3) WTI Crude Oil, 4) NDX100 [NASDAQ 100 U.S.] stock 

index, and 5) XAUUSD [Spot Gold]. 

In the upcoming algorithm manual [which I can assure you, will be 

comprehensive, easy to follow, and even easier to install on your computer 

screen], all 5 markets listed above will have a chapter devoted to it, along with 

detailed trading instructions for each, cuz like your kids [if you have any] they 

have different personalities and need to be traded differently. Hopefully, 

everything can be finished this upcoming weekend, but if not, soon thereafter.

As you can probably guess, the website focus will switch to these 5 markets, 

with Brent Crude Oil in the spotlight, cuz it’s the worldwide leader in “force 

volatility” by a long shot … nothing consistently even comes close day-in, 

day-out. Name me any market that has an average  2%+ daily price change 

over the last 2 years?

Turning to today’s Brent Crude Oil market … comments earlier this morning 

from OPEC members, giving their various 2 cents of “blah blah, yada yada” for 

next week’s OPEC meeting in Vienna, concerning the level of additional output 

among members + Russia, led to some interesting market action between Brent 

& WTI, as WTI showed some strength, while Brent was a weak drag. As we go 

forward over the next week, look for some really strange market action, as 

traders read and interpret “trial balloons” being released to gauge 

POTENTIAL market reaction.

Only one trade today … PAMM up a little more than half of 0.1%.

While I’m not here today to go over trading manual specifics, one condition did 

take center stage today, and that specific condition is the necessary daily range 

to start to trade Brent … the rule is simple: Brent needs at least a $0.60 cent 

daily range before I make any trade, and this rule cannot be violated.   

Well, we didn’t get that until 10:30 A.M. EST [14:30 server time], about 5 ½ 

hours into my trading day. Usually Brent has no problem with that little of 

range, but today it was a struggle. And while an average day can easily see 10+ 

trade signals, today we only got one … the one I took. There was another buy 

signal that came after 2 P.M. EST, but I left it alone cuz it’s after 2 … unless 

news prompts being in the market, initiating positions after 2 is asking to lose 

money, as at any time spreads can go higher and price action can die for the 

day. 

Granted, the profit level wasn’t much on my one trade, but I was up money 

and never in any real negative profit position while in the trade; “it did what it 

did cuz off the price decline the sell momentum died, and everybody that was short 

hit the panic button to liquidate, and that fuel was what propelled price higher 

momentarily … “like I said, this is “force volatility”, quick price moves in a very 

restricted time window, and while the other 4 markets have excellent “force 

volatility”, nothing compares to Brent”. So, we take what the market gives us 

and come back tomorrow … simple as that.

The future's so bright I need sunglasses! … I’m outta here … until tomorrow 

mi amigos … Onward & Upward!!

PAMM Spreadsheet directly below. 

 

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND

OPERATIONAL; SEE “PAMM/MAM MONEY PROGRAM” IN

“DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN

FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND

START YOUR JOURNEY FROM WHERE YOU ARE AT TO

“ESCAPE TO SUCCESS”!