The Vegas Short Term Algorithm - page 4

[therealvegas]

Although today was active with a good trade going in most pairs, it almost seemed dead compared to recent volatility. Good short opportunity for those of you that trade EUR/JPY. Short signal came very quickly after nice move down in the candlesticks from high.

I only put in the sell signal [aqua downward arrow]. As I have stated in the algorithm, you can use many criteria to liquidate the position, including any that you like to use. The rules are much more flexible in exiting a profitable position because you have a free trade going.

I didn't trade EUR/JPY today; instead I was looking at EUR/USD. Although my entry was OK, I didn't get out like I wanted. Nonetheless, the PAMM booked a hair less than 1% on the day.

-vegas

[therealvegas]

I left the EURUSD alone today due to possible near fatal volatility if the EU does something [bailouts] with 2 of the PIIGS [Ireland & Portugal]. There was a nice move down the algorithm caught, but for most of the day it was very choppy.

Instead I tried to pick the bottom in spot gold [XAUUSD] with a move that came very close to the lower aqua line. However, picking bottoms is a very dangerous undertaking in the precious metals, so I used my gold proxy AUDUSD. The aqua arrows are where gold was and where AUDUSD was when I got long AUDUSD.

Gold was very near the aqua line when I bought AUDUSD, so I thought it was worth a shot at a good trade. Gold rallied a couple of bucks, which triggered a slight AUDUSD rally. But gold rolled over and started making another new low and I got out of the AUDUSD with a few pips profit: nothing of real significance but better than a loss.

Had I been long spot gold, I would have lost about $4 - $5 per oz. [with the spread] because after it rolled over it moved very fast. Not that AUDUSD is always a slow mover; it can move fast also, but usually you can trim losses better in AUDUSD than you can in spot gold if you are wrong.

Gold did eventually hit and go through the lower aqua line, and both gold and AUDUSD bottomed at 18:45 before a short covering rally took hold. This came a little too late for me as I generally take open positions only before 18:00 in the algorithm.

-vegas

[forextr]

Hi therealvegas;

Thanks for system. I post screenshot from attachment. This is valid entry from your system?

Regards.

[ptrader]

Hi Vegas,

Thanks for posting details of this trading method. I know this is a subjective question, but what sort of money/risk management techniques do you use as an experienced professional trader? What percentage of account do you risk per trade and what would you recommend for someone with limited experience using this method.

Thank you

[wspinks]

therealvegas:
piptaker, Double click on "therealvegas" in the header and get the URL for my homepage in my Public Profile. When you get there download from the link "The Vegas Short Term Algorithm". In this PDF are the explanations for all the lines and the "White Dots", and their respective significance and purpose. In the time it would take to explain here what you want to know, you can download the document and read a detailed explanation of not just the goldenrod line, but everything else as well. After you do this if you need further explanation just let me know. -vegas

Hello Vegas,

I have been trying to email you at the given address [e-mail], but this address is repeatedly rejected. Can you please let me have the correct address?

Thanking you, ([e-mail])

[yac128]

Hi all,

I read the pdf explaining the vegas short term algorithm, i need to ask some questions:

1- The correct timing to enter : immediately after the crossing or should I wait for two or three candles?

2- I i miss the crossing, is there a method to predict that this trend continue or I must wait for the crossing?

3- Sometimes the crossings are too close to each others, i mean that after the crossing by three or four candles there is another crossings in the opposite side. How to distinguish between these loosing and winner positions?

thanks