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Sunday, July 23, 2023

SUNDAY UPDATE: SUPER SCALPER ALGORITHM SUMMARY

 

“A broker’s job is to keep you away from the scumbag banks  & HFT'S!!”

It doesn’t really matter which market you trade, as long as it delivers and meets

the expectations of a “scalping environment” successfully … obviously over

time, this means different markets cuz nothing stays the same in the

manipulation matrix everything finds itself in … in the here and now, you really

only have 5 choices, and 2 of those have a big asterisk next to them cuz it

depends on spread conditions where you trade ‘em and whether or not you

choose to trade futures or CFD’s … 1) Bitcoin [BTCUSDT], or alternatively if that’s

too rich for the blood, Ethereum [ETHUSDT] and/or Ripple [XRPUSDT] at IQCENT

… absolutely nowhere do you get better trading conditions than IQCENT when it

comes to crypto … 2) “Stock Bellies” [DOW30, SP500, NDX100] … right now the

NDX100 is the best market of the 3, cuz people love to trade tech “Stonks” … but,

it really depends on “total cost to trade” and where you trade … some houses will

have better conditions for DOW30, or SP500, it just depends … VIX for the SP500

and the DOW30 right now is very low, and you can see that reflected in their

respective 20 Day Range MA’s … 3) USDJPY … I have a love/hate relationship

with this pair … I like the PIP movement overall, but I don’t like the dollar value

of 1 PIP … but, given its very low spread under normal conditions, generally ½ a

PIP or less, and total cost to trade under 1 PIP given any commissions +

slippage, it’s hands down more volatile than other FX pairs … you get

“gap pricing” in FX in EVERYTHING, meaning the bid/offer quote jumps

erratically with the scam variable spread model employed by houses & LP’s,

so you might as well go with the most volatile, cuz you’re gonna pay for it no

matter the market.


The other 2 “asterisk” areas are 4) gold, and 5) crude oil … it’s very difficult to

find decent markets of these 2 away from futures … for the vast majority of

houses, gold & crude oil are pure rip offs … there simply are much better

trading / scalping markets available for trading without giving up the store just

to say you’re trading one of ‘em … and I don’t want to trade futures cuz it’s in

the U.S., and that opens up a whole box of bullshit nobody wants to deal with

at any level.


From here, we have to deal with these manipulated pieces of shit markets from

a specific angle, or you’re gonna get your money taken from you! … and that

angle is simple … your enemy is the scumbag bank or HFT, and you have to get

them to work for you not against you … you cannot buy rallies nor sell breaks

and expect to win consistently … you have to trade a market that is what I call

“UP / DOWN VIOLENT” in its makeup, and you have to “think like the bank” so

you can get a handle on when a rally is about to take place … and right now,

Bitcoin, NDX100, and USDJPY are like a 3-ring circus offering anything anybody

could want across world time zones … I like the NDX100 cuz of its spread

pricing and wicked intra day VIX … ditto with Bitcoin & USDJPY, but they need

to move to be effective. 


Overall grading IMHO sees the NDX100 the clear winner, and it all happens within

6 ½ hours [9:30 AM EST - 4 PM EST] … wherever you trade, the bid/offer spread

for the NDX100 should be around 0.7 index points when the NYSE is open

… commissions should be very tiny or NONE at all … IQCENT has marginable

leverage for accounting purposes at 500:1, which is as high as I’ve ever seen for

any stock index … ditto with SP500 and DOW30 as well … that mi amigos is

tough to beat!.


And this last week has seen about everything you can ever expect to see when

it comes to the NDX100 … skyrocketing higher … panic selling lower … vicious

chop in the middle … straight up / straight down multiple hundreds of index

points … about the only thing you haven’t seen is dead market action over many

hours when the NYSE is open … and if you did, it wouldn’t be much different

than the vicious chop we’ve seen in short time periods … the only thing we

haven’t seen is a crash scenario, where price goes down thousands of index

points, and that’s not something you can model effectively cuz you can’t

measure pure panic successfully past RM=4 … you can try, but conditions get

“out of control” … spreads blow out … bids / offer change so quickly and the

LP’s hike slippage to Vito Corleone levels, and your probability of success in

this is about ZERO.


Here is the summary of the “Super Scalper Trading Algorithm” as it’s now

constructed … 1) 2 VIDYA CMO1.1 lines … the first VIDYA LINE IS CMO

PERIOD = 9, SMOOTHING PERIOD = 3, PRICE = CLOSE PRICE … COLORS0

= AQUA, COLORS1 = WHITE, COLORS2 = WHITE … the second  VIDYA LINE

IS CMO PERIOD = 4, SMOOTHING PERIOD = 2, PRICE = CLOSE PRICE

… COLORS0 = LIME, COLORS1 = RED, COLORS2 = RED.


The second component on the m1 candlestick chart is my proprietary support /

resistance lines based on the Gann “Square of Nine” [SO9] … you can create

your own SO9 for further research at the link below.


https://www.bonniehill.net/pages.aux/gann/sq9.html


I use a 15 EMA to calculate uptodate every m1, support / resistance at 4

different volatilities [Risk Models] RM = 1 - 4, with RM=1 being the LEAST

volatile and RM=4 being the MOST volatile … these RM’s can be changed

“on the fly” within a second or two, and for markets I’m looking at, I usually

have both RM=1 AND RM=2 up on the m1 chart … simply load the indicator

twice and run it … each level is represented by a band of 3 lines [2 dotted,

1 solid] … this forms a “ZONE” of either support [below the market] or

resistance [above the market] … OVER 99%+ OF THE TIME, PRICE WILL NOT

ESCAPE RM=2 VOLATILITY LEVEL … THESE ARE NOT “ZONES” TO GET

LONG / SHORT … THESE ARE ZONES TO POTENTIALLY LIQUIDATE LONG

OR SHORT POSITIONS, AS THE PROBABILITY OF A SHORT TERM TOP OR

BOTTOM IS STRONG.


These “zones” of RM’s are at 125° and 45° degrees of angle to the “Cardinal

Cross” cell value of 15, which is on the 90° AXIS on the SO9 … triangles are one

of the strongest support and/or resistance mechanisms found in the physical

universe … and if you’ve taken the trouble to put them onto your MT4 platform

m1 chart, you’ll see just how “Hoover Dam” good they are … IF YOU CAN

SHOW ME A BETTER INDICATOR OF SUPPORT / RESISTANCE IN REAL TIME,

PLEASE LET ME KNOW!


The third component on the m1 is the “UniFisher Transform” [UFT] … the

settings for this are 10, 5, 3 and are the default settings … this oscillator

underneath the m1 chart takes price action and converts it into a Gaussian

probability function where price is converted into points on a bell curve … the

readings then give you SDEV [standard deviation] values from the mean of the

time period, here 10 … as we all should know, 2 / -2 SDEV from the mean covers

95% of the bell curve … in the LEVELS section of the indicator, add “0”, “2”, and

“-2” and the chart will show dotted lines for these “LEVELS” … generally, LIME

CROSSING OVER RED IS A BOTTOM AND LIME CROSSING UNDER RED IS A

TOP … values over 2 and under -2 are mostly seen when price is at one of my

support / resistance RM levels 1 - 4 … used in conjunction with the 2 VIDYA

LINES, the UFT is the key component in first looking for a long / short trade.


All of the files you need are in “Download Links” … VIDYA is listed separate

… the “UniFisher Transform” [UFT] is in the “MQL4 FILES 2” directory … and

the “VEGAS mql4 files” are in the directory “Super Scalper MQL4 Code Files”

… all are located in my shared file folder at box.com and I absolutely guarantee

they are virus free and available to download for FREE … no gimmicks here.


I use LIME / RED for up / down slope respectively in the VIDYA 4, 2, CLOSE LINE,

and I use AQUA / WHITE for up / down slope respectively in the VIDYA 9, 3,

CLOSE LINE … of course, you can choose whatever colors and style of width

you desire, just make sure the input parameters are the same.


Directly below a screenshot from Friday, July 21, 2023 of the NDX100 with the

full “Super Scalper Algorithm” up on the candlestick m1 chart.


click on chart to enlarge

As I said before, I have both RM=1 and RM=2 on the chart of the NDX100, and I’ve

placed a yellow vertical line where the UFT is crossing over … this in and of itself

is NOT THE BUY SIGNAL … the buy signal comes when both the VIDYA 9 IS AQUA

AND THE VIDYA 4 IS LIME … that will happen either simultaneously with the UFT

crossover, or within 1 or 2 m1’s later … you have to wait for the colors to be what

they are supposed to be, otherwise in a strong market lower you will get caught in

an “M1 HIT WONDER”, where the bank sucks you in and then continues to bomb

price lower.


For the entirety of FX, which obviously includes USDJPY, there is the “FX”

support / resistance mql4 code file … so, if you’d rather trade GBPJPY, Cable,

USDCAD, or something like EURJPY, directly below is EURJPY with the FX algo

on the screen from Friday, July 21, 2023.


click on chart to enlarge

Here, I’m looking at EURJPY from the short side … again, 2 RM’s up on the m1

… the yellow lines lining up with UFT LIME CROSS UNDER RED, but the sell

signal doesn’t occur until RED CROSSES UNDER WHITE … again, this is an

important distinction cuz you don’t want to get caught in a one hit m1 wonder

and have the market continue to go up … also, and this goes for the NDX100

example as well, keep in perspective the slopes of the support / resistance lines

when making a buy/sell scalp trade decision … NONE OF THE FX, GOLD, CRUDE

OIL markets have the “88/6/6” trading paradigm enjoyed by the “Stock Bellies”

complex … sharp slopes up / down and you’re going AGAINST THE GRAIN for a

scalp trade, you either have to make sure the trade is indeed a scalp or leave it

alone … sharp turns in slope are rare, but they happen most often in the

“Stock Bellies”, especially right at the European close [a/k/a “London Fix”],

where price suddenly finds a bid or offers and reverses into the afternoon and

close, thus screwing the European traders looking to close the day out.


The more volatile the market, the better the “Super Scalper Trading Algorithm”

should perform … with Bitcoin, I still prefer to use the m3 at IQCENT in

conjunction with the m1 on the MT4, and use breakouts of the formations I’ve

mentioned before, rather than solely rely on the m1 … for any other markets I

use only the m1.


Directly below, this week’s 20 Day Range MA’s for selected markets.


click on table to enlarge

Onto the week with the Lounge Lizards meeting on Wednesday at one of Hitler’s

super secret bunker locations, to dazzle us with another interest rate increase

… might be a slow Monday and/or Tuesday, we’ll have to wait and see …  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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