Vegas Is Back - New Algorithm - page 3

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frida:
Thanks for respond. I've tried system yesterday (Euro session - E/U), made 18 pips, exit at 1.3800. I'd like to ask you which pairs do you recomend to trade with your system? I live Downunder and I don't trade USA session. So only Assian and Euro left, Assian is hard to trade (as you said). And another Q is: E/U, G/U and A/U are in some sort of retracement on 4H charts - going up lately - do you trade only short on those pairs or do you swich to long? I've read rules, I'm just curious what you are doing at such times.

Frida,

Algorithm is good for any pair. I would suggest that whatever pair you trade, you do 2 things: 1) keep a rolling 20 day median of the range, and 2) go back in history of pair on MT4 and get an idea of the volatility based on range so that you can adequately gauge the risk models.

You can choose how aggressive you want to be with the algorithm based on your own risk/reward parameters. Normal risk you just trade the side that the 4 hour chart says be on. However, if you are aggressive, you can choose to take every long/short signal. You can also choose to make new positions when the aqua lines are hit, or the white dot count is taken out. It all depends on you and your style.

In addition, if you have other technical criteria, you can use that if you wish to exit open positions that are profitable. It basically can adapt to your style of trading.

The one thing I would say to everyone is that you cannot fade the algorithm. If you are trading using something else, just know that if you are on the wrong side of the algorithm, then you are on the wrong side of the Marble Game as a result. That doesn't mean it won't change and go in your favor, but for the moment it doesn't look good for you.

Hope this helped answer your questions.

-vegas

 

smells like fraud

somebody says: "let's pay a little amount to the managed account (100 bucks...), I just need your id card and stuff (just for identification of course). there is noooooo way for me to get your money." well of course he has your id card and stuff - more than enough to change the accounting details on fx open and fund the money to his own account

are you barry haigh? i bet you're not! people watch your pockets! please read his stuff and than try compare the documents he wrote

 
rush:
smells like fraud somebody says: "let's pay a little amount to the managed account (100 bucks...), I just need your id card and stuff (just for identification of course). there is noooooo way for me to get your money." well of course he has your id card and stuff - more than enough to change the accounting details on fx open and fund the money to his own account are you barry haigh? i bet you're not! people watch your pockets! please read his stuff and than try compare the documents he wrote

Rush,

Gee, you figured that out on your own?

Unless you think I own the brokerage house, what I have stated in my document is true.

As to the other stuff, your free to do whatever you want. Point is: the algorithm works quite well, and if you can't handle it - well, that is your problem.

Psst! [People watch your wallets - yea, when your trading the wrong way.]

-vegas

 

I want to talk about the limitations of the algorithm.

I know from experience that the main weakness of my algorithm is when prices start to "huddle" and the 4 hour ma's are either overlapping or very close together and going back-and-forth over each other. Aside from now, where the last 2 weeks have seen this, the EUR/USD had a week in June and a 2 week stretch at the start of February.

What happens, is what is happening now; namely, you get the 4 hour telling you to be short, and then the market goes straight up for 30 hours and you miss a nice up move, or vice versa on the downside.

There is a temptation to play both sides of the trade, but I would recommend not doing it. For the entire year so far, we have only had about 5 out of 40 weeks where this scenario has played out.

The primary purpose of structuring the algorithm the way it is, is to keep you out of trouble because of your market bias. First do no harm, then make money.

But the good news is that this limitation is an opportunity cost and not a real cost. Big difference! Think about it.

-vegas

 

Thanks!

 
therealvegas:
I want to talk about the limitations of the algorithm.I know from experience that the main weakness of my algorithm is when prices start to "huddle" and the 4 hour ma's are either overlapping or very close together and going back-and-forth over each other.

can you somehow repair this limitation???

 
gertonbag:
can you somehow repair this limitation???

gertonbag,

No matter how hard you try; no matter how many filters you use; no matter how deep the math is; no matter what you or any other human can dream up or devise; the plain simple truth is that every algorithm will have at least one major flaw, or limitation, that results in losses. At least one; most have a lot more than that.

I wish I could make it go away , but sadly I can't.

The good news? You know about it and can deal with it in a number of ways.

-vegas

 

I am making an adjustment, for more active and aggressive traders, in the algorithm. This adjustment is only an option, not a requirement.

Choose the "long" or "short" 5m STA when the 4 hour ma's are either overlapping or very close to one another. Go with both long and short positions with a crossover signal. Then use the same rules from the documentation.

For clearly trending markets, use the original rules.

This, if you choose to go with this strategy, will allow you to possibly go with some of these strong daily moves that are counter trend.

-vegas

 

With the Fed’s announced desire to debase the U.S. Dollar last Wednesday, we have entered a new and potentially frightening phase of currency trading. Make no mistake: QE2 is nothing short of the first shots in a trade war: it’s a race to see who is successful in getting their respective country currency as low as possible vis-à-vis other currencie

Don’t think for a second that China, Brazil, Euroland, et al are going to sit by and watch the U.S. sink the Dollar so low that they will then have an export advantage. Look for stupid things on their part as well

Never underestimate the power of Governments to truly do stupid and devastating things, not only to their own people, but other nations as well.

As such, trading has the potential to get extremely volatile going forward. You need to pay close attention to the algorithm so as not to get hurt. I realize that many of you have looked at the algorithm, but may not have implemented it in your trading.

One of the algorithm’s most important benefits is that itkeeps you out of trouble. Say what you want about your biases and trading limitations, but it was designed first and foremost to prevent trading account meltdowns. It will keep you out of trouble.

Of course, no algorithm is 100% accurate and makes money all the time. Anybody who says otherwise is a fool. But when it loses it has to be small and insignificant. It is far easier to make back a percent or two or three than be staring at a 30% clipping or more.

We are going to see massive moves going forward in currencies and precious metals. The only thing I wish for you is this; before you pick the color of your new Mercedes, first do no harm to your account, then be on the side that is moving and making money. The algorithm gives you that edge.

-vegas

 

Hello vegas,

thank you for sharing your ideas and thoughts.

I tested your indicators Vegas_STA4_Long.mq4 and Vegas_STA4_Short.mq4. But there are no "white dots" displayed in the charts as mentioned in your The_Vegas_Short_Term_Algorithm.pdf. How do I get them into my charts?

Regards,

maria

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