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Sunday, November 5, 2023

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



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