In Part III of the Appendix [bottom paragraph of page 39 of the PDF] of "The Vegas Short Term Algorithm" I explain how to set up the "white dots".
If you have questions after reading, please get back to me.
Thank you vegas, found it.
Could you please tell me in brief the meaning of changing the default P-SAR values to 0.6 and 0.06?
I would like to ask about the provider of the brokerage service that is utilized while investing in TrafficCap - FXOpen. This broker has rather a negative opinion in the Internet, let's consider these links:
FXOPEN Scam Scum @ Forex Factory
Fxopen Is a Scam, Be Aware! @ Forex Factory
I'm not trying to tell that TrafficCap is bad, I'm only asking if FX Open is worth trusting?, in other words: even if I believe that TrafficCap is brilliant, nobody can guarantee the broker's behavior
I'm asking because it is stated in your paper that all questions are welcome
I would like you to visit:
Forex Factory - View Single Post - Sixths trading - an EA by macman, Bob and Steve mk 2
And also Vegas Algorithm auto-trader by Steve and Squalou @ Forex Factory,
EA in progress...
Well, to a certain extent, every single retail broker has something wrong with them, IMHO.
I use Forex Peace Army as the definitive source as to whether or not a retail trading house/bank is reputable and worth trading at. Currently, FX Open has a 3 star rating out of a possible 5 stars. No house has 5 stars outside the U.S. that I know. FPA actually investigates any problem a person submits to them for review, and releases to the public there findings.
As to negative internet press, it goes with the territory. Anybody can write anything and put it out there. Pick any house and you can find something. Usually, people cry "scam" when the house discovers two people are trading simultaneously on opposite sides of the market to scam the house out of bonus money.
I have not had a problem in any of my dealings with them, so my personal view is that they are just fine. Now, like every other house, they can go broke tomorrow, no matter the glittering press they receive beforehand. It's the risk we all take trading. I would say though, that outside the U.S. most houses segregate customer funds over a certain limit, so to some extent there is more customer protection than in the U.S.
I use them primarily because they are the only house that has a PAMM program up to my standards and specifications. None of the others met all of my criteria.
Thanks for the question; I'm glad somebody asked it.
thanks for the link.
Generally, I don't like EA's. Too many things can happen wrong for my taste. but if somebody wants to use one, then by all means go for it.
I'm not going to take the time to contact him, but if anybody does, they might mention that in the "off" market hours you could get chopped up pretty bad. Just a thought.
Right now I am concentrating on the precious metal markets. With the FED POMO starting tomorrow, look out for the fireworks over the coming weeks. You can read more at my blog.
AUDUSD is well known as a "commodity currency", as well as a carry trade vehicle [especially the risk aversion carry AUD/JPY].
The attached 4 hour charts show the correlation between spot gold [XAUUSD] and AUDUSD. I've put in arrows at the tops and bottoms to show the correlation. It's very good at the turning points. Now, it's not perfect, but the correlation is high enough that it can spot very good AUDUSD trades.
AUDUSD is a good "proxy" for trading in silver and gold. Instead of paying the high spread in both, as well as the very high rollover carry charges, a position in AUDUSD [instead of gold or silver] can actually be much more beneficial. It pays interest at rollover, and the spread is significantly lower.
Plus, as I hope you are aware, the gaps on stops in gold and especially silver are the most wicked in the business. Today, silver had a $0.45 drop, and gold lost $9 in less than 5 minutes on stops [most likely engineered by our friends at JP Morgan, HSBC, and Goldman Sachs].
As I said before, the correlation is not perfect, and over the short run there are and will be divergences. Use this information to your advantage.
When you spot a turn in gold, use the algorithm to make your AUDUSD trades. In essence, since making money is our primary goal, why wouldn't you want the same opportunity to make money but have less risk and better liquidity with lower spreads?
This is simply another way to creatively trade the metals without subjecting yourself to consistently horrendous stop hunts, high spreads, and lower risk. And if you carry a long position it pays interest.
My latest blog is on risk - a response to today's trading environment. Please go and read it.
Vegas .. thank you so much for everything you are doing to FX community.
I love the way you think.
4 Hr method is already making money for me, but this is really fantastic.