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Sunday, September 24, 2023

SUNDAY UPDATE: SCALP TRADING AS A QUASI BINARY OPTION

“When you know you HATE working for a living, and then discover trading!!”


It’s easy for people, when struggling with trading, to point a finger at a

successful trader and say, “well yea, he’s just a born trader”, and by de facto

definition, somehow the gene pool skipped over your Mom & Dad and said

“what’s the point?” … however, what’s really going on when I hear shit like

this, and quite frankly it’s been directed at me my whole professional career

by others, is a misunderstanding of an important process few people really

understand … cuz what somebody really means when they say others are

“born traders” and they’re not, is THAT THEY DON’T HAVE THE NECESSARY

HABITS ALL SUCCESSFUL TRADERS HAVE! … 1) dedication to learning

markets in their entirety … OK, call it an addiction … 2) discipline & patience,

which are FREE by the way, and are LEARNED BEHAVIORS … 3) finding the

right markets [lowest total cost to trade] and equally important understanding

the brokerage house you’re at and how they work and make money, and

getting yourself the best deal possible … 4) once you’ve gotten the first 3 down

pat, FIND OR CREATE a trading model that accomplishes what it is you’re

trying to do … a scalping algorithm is useless if you’re a position trader and

vice versa! … understand that trading model backwards & forwards, and most

importantly understand its limitations and when it breaks down … there is no

“Holy Grail” in trading, and every model has at least ONE drawback that leads

to trouble, and quite frankly most have a Helluva lot more than one

… avoiding trouble and THEN MAKING MONEY IS THE RIGHT APPROACH!

… and 5) when you have all of this, attack your chosen market like

“Attila The Hun” and don’t stop trading until your bank balance looks like

your cell phone number with area & country code! … NOW, YOU’RE A BORN

TRADER!!!!!


And believe me, there will be challenges galore in spite of success … we live in

the era of central bank manipulation via their BFF scumbag LP banks, and

nobody has a choice in the matter when it comes to trading … you either figure

out how to escape their clutches and/or get them to work for you, or you FAIL

… it’s a binary process they’ve instituted, and most markets can kiss the idea of

the concept of a “fair & honest free market” right down the toilet … the rise of

crypto in the last decade has helped change the trading industry in ways it

wouldn’t have changed on its own … that’s why Apparatchiks & POLS hate

crypto, cuz they can’t control, manipulate, and/or cheat it like they do fiat, and

therefore it’s a systemic threat.


I have always been a scalper my entire professional career … it gives a trader

MAX freedom from those who seek to assert control over a market … whether

private groups or government via central banks, what’s the difference? … the

difference is only that private groups seek to assert control to make money, and

therefore create volatility, which helps traders … POLS & Apparatchiks seek

control to PUNISH TRADERS BY CRUSHING VOLATILITY AND EXERT POLICY

THAT IS USUALLY IDIOTIC WHILE ATTEMPTING TO ESCAPE CONSEQUENCES

FOR THEIR ACTIONS … in other words, it’s propaganda for financially

educated Sheeple!


There is no question in my mind, and it is my learned opinion only cuz I can’t

get actual “proof” cuz there is no such thing as transparency or accountability

in trading markets any longer from the big actors … the offshore brokerage

houses are joined at the hip with either bank LP’s or very large HFT’s [High

Frequency Trading firms like Citadel, Black Rock, Virtue, etc.] so as to increase

profit through underhanded techniques … while they technically might not be

illegal, they sure as Hell are immoral … and they involve bullshit “variable

bid/offer spread games” on a constant basis where they claim your trading

platform [most notably MT4 or MT5] is giving you the highest bid for selling and

the lowest offer for buying from a multitude of “Tier 1” liquidity providers [LP’s],

when in fact they only ever use 1 or maybe 2 of these banks or HFT’s, and the

bids & offers employ “mystery ticks” up in the offer when you go to buy, and

“mystery ticks” lower in the bid when you go to sell … and while you might

think your house has “tight spreads”, in fact it’s all bullshit and they’re in reality

50%+ higher than you thought when you go to trade … and nobody but nobody

did it better than Turnkey when they were still around, and now that they’ve

merged with Coinexx, these Asshats employ it as well.


And if that’s not bad enough, we don’t know if any of these brokerage houses

sell your customer data to an HFT, with all of your accounts trading habits

… we’re talkin’ millions of dollars here … remember RobinHood & the HFT

Citadel? … but, like I said, crypto changed a lot of that, and at least the HFT’s

are better for us as traders than the scumbag banks.


Which brings me to IQCENT and the markets they offer that can’t be beat

anywhere! … go ahead, I dare you, go find them somewhere else and then let

me know via email where there’s a lower total cost to trade, cuz I definitely want

to know … although I list 4 crypto markets to trade, there are more than that at

IQCENT, but these are the top 4 IMHO, and unless there’s a specific reason to

stray from these, all I see is trouble in trading the others, mostly cuz of lack of

liquidity and VIX … and the 4 are, BTCUSDT, ETHUSDT, DOGEUSDT, &

XRPUSDT … BOTH BTCUSDT & ETHUSDT have 1 penny bid/offer spread with

no commissions, so it’s literally impossible to find another house that can beat

that … IMHO, ETHUSDT makes for the best overall conditions. 


And if you don’t want to trade crypto for some reason [like it ain’t movin’!], over

in FX the only obvious choice is EURUSD … 0.1 - 0.2 PIP BID/OFFER SPREAD

WITH NO COMMISSIONS … lowest cost to trade you’ll find anywhere! … I

highlighted in a previous blog how IQCENT makes their money, and they do it

through HIGHER VIX on spikes UP/DOWN … again, another big benefit for a

successful scalper, when you “buy the dip & sell the RIP!” … other markets can

make good “day trading”, but not necessarily good scalping vehicles to trade

… for scalp traders YOU ABSOLUTELY NEED THE LOWEST COST AVAILABLE

IN THE MARKETPLACE, ALONG WITH ZERO SLIPPAGE … from my

experiences, you get that at IQCENT … you most certainly don’t get it at Coinexx

cuz of commissions + slippage.


I mentioned the other day about reorienting your thinking towards scalping, and

bringing yourself around to view scalping as a specific condition of binary

options … a “quasi” model if you will … cuz here’s the deal folks … using VIDYA

& the stochastic oscillator, we can pinpoint very well with a very good & high

probability, when scumbag banks are about to either resume a short term trend,

OR “flip the script” and fade spec order flow … cuz remember, to a bank they

don’t want to move a market that hurts the direction of their positions, so they

engineer moves up/down so spec order flow is faded on spec buy/sell signals

… I’ve noted in the past that this is “buy or sell fuel” ready to hit the market,

and we see this all the time in FX and crypto pairs … and so we get the

appropriate move like clockwork! … contrast this with an OTC Binary Option,

where the entire process has no basis in fact in the real world … it’s make

believe trading among house clients, so they say … the entire system is being

run by an “AI generated software system”, much like casinos use with

progressive slot machines linked to each other via numerous casinos linking

thousands of slot machines, and the casino groups involved set the various

“win ratios” of the slots system … it’s guaranteed money for the casinos, and

it’s guaranteed losses for the people who play IN THE COLLECTIVE … but

binary options ain’t progressive slots! … you’re only ever gonna get a payout

of anywhere from 90% - 98% of your bet, there’s no “bet a dollar on a trade

and win $100K” … the biggest drawback I see from very short term

expirations, e.g. 5s and/or 15s bets, is the preponderance of moves that

happen within a fraction of a second from expiration that turn winners into

losers … that ain’t any real market that moved, it was the computer system

fucking you and taking your money! … it’s why OTC options have much

higher payout ratios than regular, normal markets … basically the house is

playing “bookie”, and in this closed system not available to outsiders

outside the brokerage house, the AI software can do whatever the fuck they

want to price to insure the house always wins … THAT VERY MUCH ISN’T

THE CASE WHEN SCALPING ANY MARKET LIKE CRYPTO OR EURUSD.


You cannot use regular m1 MT4 or MT5 charts for binary options, cuz like I said

they are NOT real markets, so real market charting is USELESS! … IQCENT

licenses a charting service like Trading View [TV] to host the feed from the

IQCENT computer center and then feeds them the streaming data that’s

generated by the “AI software” … and that’s what you can chart with on the

IQCENT PLATFORM, OR ANY OTHER HOUSES’S PLATFORM … just remember,

it ain’t real, it’s made up, so it can [and will] do anything it wants … and what it

wants is your balance! … the only drawback to thinking that scalp trades are

“quasi binary trades”, is when traders can’t or won’t take a small loss when the

buy fuel [or sell fuel in shorting] doesn’t show up as expected from an algorithm

signal … and so the breakdown of the individual trader in terms of discipline

comes back to bite him/her right in the ass … however, on the flip side, there

are times when you get long and it just keeps going higher second-after-second,

minute-after-minute, and you get a whole lot more from the trade than a PIP or

two … in essence, though, when you break it down, there are quite a few

positive similarities to binary options … I’ll have more on OTC binary options

next week from the 30s perspective, so for those interested, stay tuned.


Sometime during the week, I’ll also post to “Download Links” the XAGUSD mq4

code for support / resistance in the 4 “Risk Model” [RM] zones of volatility

… silver looks to be particularly well defined for a price explosion when gold

erupts, and with new pricing via a new HFT LP, it makes sense to include silver

as an adequate supplement to gold from a trading perspective.


Directly below, this week’s 20 Day Range MA’s for selected markets … I’ve

expanded the list to include New York session average & median for ETHUSDT,

which when it moves is right there with EURUSD FOR THE BEST MARKET TO

TRADE … PERIOD! … onto the week.  


click on table to enlarge

… 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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