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Wednesday, July 6, 2022

NO RULES TRADING DEMANDS RULES

 

“Oh, I’d bet you trade FX as well! … what can possibly go wrong here!?”

We exist in a paradigm where there are NO RULES … take the word “never” and

strike it from your vocabulary … anything can happen at any time, and we’ve

previously not seen anywhere near the record number of double & triple reversals

we see now in FX markets … this is like no limit Texas Hold ‘Em … and because of

that, you absolutely have to “have the proverbial wind at your back” when trading

… meaning, some kind of short term trend has to be in place to give you some

cover … buck the trend, and you’re gonna find out “el mucho rapido” just how

fast the market can take away gains from you … minutes going up/down

… seconds taking it all away.


Without some kind of trend in place, your buy or sell signals are apt to be short

in scope and range, AND you will have a higher number of “false positives”

… could be one or two, or could be 5+ in a row … and if that traps you, you’re

gonna need a decent winner just to breakeven … on the other hand, if the trend

is long enough, say 20+ minutes on the m5, algorithm signal parameters are going

to “lock in” on that trend, and via the 15s chart at Netdania, you’ll get winning

scalp trade signals … losses for the most part, are only gonna happen when both

HEMA & Heiken Ashi smoothed change colors on a trend change … and if the

trend changes too often, both will go “flat” and lose their respective slope, a/k/a

“chop city” … you simply have to be patient and wait for your market to move

… anywhere, somewhere!, just frickin’ move! … when it doesn’t, don’t trade it.


Since the “Vix Genie” has been out of the bottle, the FX space has seen

increased volatility no doubt, and that’s reflected in a big increase in the 20 Day

Range MA’s … the parameters I’ve set for the Mrs. & “Miss Gimpy” [my niece

with a broken leg] work very well for directional trend in EURUSD, and then

attacking that market from the proper color side [ON THE MT4 M5, BOTH HEMA &

HEIKEN ASHI SMOOTHED = sky blue = UP, get long on signal from 15s via TEMA

OVER ALMA, OR ON THE MT4 M5, BOTH HEMA & HEIKEN ASHI SMOOTHED = pink

= DOWN, get short on signal from 15s TEMA UNDER ALMA.] … PARAMETER

SETTINGS ON THE M5 FOR HEMA = [14.33, 19.0. MEDIAN], AND FOR HEIKEN

ASHI SMOOTHED = [2, 6] … these settings are good for all FX pairs on the M5,

including crosses.


Well, just like that, here we go again with the reversal shitshow circus we’ve

become accustomed to … will it be 1, 2, 3+ reversals today? … ISM services beat

at 10 AM EST beat guesstimates, and the rocket ride higher commenced … shorts

trounced in seconds … specs get long again, after getting their brains beat in

during the Asian & European sessions in USDJPY … like I said, NO RULES

ANYMORE! … FED minutes coming at 2 PM EST, and will that precipitate another

reversal? … who knows, who cares? … if you care, you’re FOMO-ing, and that is

dangerous to your account … meanwhile, I’m growing more impressed with the

directional indicator for long/short positions adopted by the Mrs. & “Miss Gimpy”,

my niece who has started her FX career here at the Caribbean Hacienda with a

busted up right leg … quite frankly, I don’t think she’ll be going back to college

anytime soon! … why? … they’re trading EURUSD … as a side note, it is faster

on trend changes than the HEMA [63,144] on the 15s candlestick via Netdania

… plus, it gives a better overall perspective on the day cuz it’s based on the m5

… and from what I’ve seen, fewer “false positives” which is always a big plus.


Meanwhile, that ISM services beat has jettisoned the 10 YR Treasury yield higher

… can that stick? … and why is USDJPY only about 50 PIPS higher now from

right before the release? … shouldn’t USDJPY be skyrocketing? … we’ll see what

the FED Lounge Lizards say later in the day, but I smell recessionary fears

hanging over markets, and that means nobody is gonna reach for anything.


London Fix has come and gone, and nothing to that today … only the FED

minutes later today, while tomorrow sees ADP employment, and Friday is

another NFP Idiocy Day.


Multiple algorithm buy signal trades today in USDJPY … TURNKEY PAMM UP

SLIGHTLY … man-O-man were the scumbag bank LP’s waiting for us today with

sharpened knives … not at all happy with any of our fills today, with one fill in

particular seeing more than 2+ PIP slippage … talk about “scumbaggery &

fuckery”, well here ya go! … and the other fills nothing to write home to Mom

about either … and yet, we made money, and that’s all that counts! … up ‘till today,

fills have been excellent with no slippage to speak of, so I don’t know what to

attribute the shit fills to, and why today … I’d ask Turnkey, but that’s a complete

waste of time cuz they don’t give a shit … and one other thing of notice … now

that it’s July, Turnkey’s commissions are back in force … 0.002% for a round turn

commission … that comes out in USDJPY at current price to about 2.5 - 3.0

TENTHS OF A PIP … can’t say I’m glad to see commissions return, but on the

other hand it doesn’t matter much in terms of profitability.


Unless there’s some mystery info we’re all missing from the last FED meeting, I

don’t expect the minutes later to have much of an effect … maybe they do, maybe

they don’t … point is, it’s JPM, Squid, and a bunch of other virus scum Wall Street

banks making the market in late afternoon … thanks, but no thanks … 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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