10.4 A Complete System

[grimweasel]

Hi Bob - thanks for the great 10.6 package.

As you know I'm a weekly directional trader using the daily for entries. I like the dummy lights indy because it provides a visual representation of what I look at each night first - trend

I wanted to know the MA methodology for the filters. I'm going to change mine to 7200mins (weekly) and use the 9 and 20 MAs as my filters - but I use EMAs - could you tell me what the ma method and ma price numbers are to reflect the changes?

PS I'm working at NYSE Euronext now - so I sit with the old floor traders and account managers. There's some interesting stuff going on with the Algos. They are coming to the FX markets in a big way, driven by the lack of momentum in commodities of late. The co-location stuff is amazing. We have a room next to the 'matching engines' for all the prop trading firms and banks enabling them to reduce latency to nano-seconds. They all need and want to be as close to the NYSE servers as possible. A few have micro-wave transmitters back to the offices in London - all in the name of front running orders and stuffing the books full of ghost quotes to try and spook the competition!

My advice for any news or event driven scalpers is to forget it. Algos have changed the market place and the sums these firms invest to keep ahead of the game is amazing. The only hope we all have is outside of the intraday stuff. Hence why I'm sticking with daily TF and upwards.

Many thanks in advance!

[nanningbob]

Hi Bob - thanks for the great 10.6 package.

As you know I'm a weekly directional trader using the daily for entries. I like the dummy lights indy because it provides a visual representation of what I look at each night first - trend

I wanted to know the MA methodology for the filters. I'm going to change mine to 7200mins (weekly) and use the 9 and 20 MAs as my filters - but I use EMAs - could you tell me what the ma method and ma price numbers are to reflect the changes?

PS I'm working at NYSE Euronext now - so I sit with the old floor traders and account managers. There's some interesting stuff going on with the Algos. They are coming to the FX markets in a big way, driven by the lack of momentum in commodities of late. The co-location stuff is amazing. We have a room next to the 'matching engines' for all the prop trading firms and banks enabling them to reduce latency to nano-seconds. They all need and want to be as close to the NYSE servers as possible. A few have micro-wave transmitters back to the offices in London - all in the name of front running orders and stuffing the books full of ghost quotes to try and spook the competition!

My advice for any news or event driven scalpers is to forget it. Algos have changed the market place and the sums these firms invest to keep ahead of the game is amazing. The only hope we all have is outside of the intraday stuff. Hence why I'm sticking with daily TF and upwards.

Many thanks in advance!

Interesting insights into the market. Yeah long term trend is where I ended up as a trader. I explained in my booklets page 1 post 1 my 240 philosophy and why I use it. I dont want to rewrite all of that again. I use the 2MA LWMA open no shift on the monthly and weekly as my main focus. If you do the math that means the 240 and 60 on the 4H charts. So you have a monthly trend and weekly trend. Compare the two and trade. It gives me my definitions of UT, DT and Range/direction change. From these definitions I try to trade by using xxx.00 lines and STOCHASTICS with the daily open.

If you want to drop to the 1H chart the 240 there is the 60 or weekly trend on the 4H and the 60 becomes the 1/2 week trend. Let me know if you have any more questions.

[nanningbob]

Lets all go flat and head for the middle ............. tick .............. tick ............. tick ........ and then

BOOM

[The_Snowman]

Yeah, I'm not running CSS yet but my trades all seemed to take a turn as Bob points out, exit 4 for small profit, still have AUDCAD open and looking good.

[art]

morning guys, yep this market is directionless at the moment, whats the update with the budget?

[Nidolap]

Took several hits last two days. Trends are not beeing our best friends...

[nanningbob]

Took several hits last two days. Trends are not beeing our best friends...

Trends or better yet breakouts are short and sweet. I have only had 3 trades I have profited over 50 pips and none over a hundred the last two weeks. Just taking any kind of profit I see out there. Averaging less than 80 pips a day so it is not like I am setting the world on fire. But I am banking something almost every day just nothing big nor any real big days. Just trying to make sure I am putting something in the bank until this mess is over.

[art]

very wise bob, more or less what i'm doing 20 pips close half let the rest run, hopefully

[nanningbob]

I agree with the basics of this assessment.

The closer we get to this kind of scenario, the more we would expect the world to divide into

1) a flight to safe haven currencies, with JPY, CHF, EUR, and GBP preferred in that order. The sharp divergence in long EUR and short JPY positioning suggests the yen will benefit the most from any position squeeze with a USD/JPY revisit of Y90 not impossible as EUR/USD heads to 1.40;

This would also mean a drop in the commodity currencies like Cad, Aud, NZD, along with the dollar. Just a heads up because if it happens like this it will be the JPY spring run all over again. Two in one year that would be something. Then if the USA gets their budget you would probably see a large sell off of what ever runs happen so you can ride it both ways.

[garyfritz]

5. The USA is going to become the world's biggest energy producer, petro dollars will start coming back home after decades of going overseas. The right kind of tax on this surplus can be used to bring down the debt.

I wonder how much the US budget / economy will benefit from this. The oil $$ doesn't go to the US, it doesn't go to the US economy -- it goes to the multinationals who own the oil resources. And they hide (or shift overseas) as much of that income as they can, to avoid paying taxes on it. Some money will flow to royalties for some property owners, and the jobs and equipment purchases will help the economy, but how much will it really help the economy? I'll be astonished if we actually manage to start paying down the debt with it.

Especially since the Republicans are determined to eliminate all taxes on corporations anyway...