Vegas Wealth Builder - Part I

Sorry if this has been explained, but how do I "load" the VT indicators posted earlier into the program?

Thanks

Assuming you mean load into VT Program...

1) Download the zip file.
2) Unzip to a specified folder. {Create a new folder if you want, just Make Sure to make note of where it is.}
3) In VT Program > VT Navigator > Menus{the frame on the left of the screen}
Select... Tools > Indicator Builder > Import Button {on Ind Build Window}.
4) Browse to the specified folder. {the one you made note of...right!}
5) There should be 4 files there, DTM_VM1.vtscr, DTM_VM2, DTM_VM3 & DTM_VM4
***Note***These are their Short Names
***Long Names*** = Tunnel Indicator Daily Model VM# 1...etc
6) Highlight one of them and click open. VT will add that indicator to your "Custom Indicator" list.
7) Repeat from > Import for the other 3 files.

There is no need to compile or verify these files, it has already been done.

Attaching indicators to chart:

1) Left click the chart you wish to attach to. Then go to...
2) VT Navigator > Trading Tab > Custom Indicators... from the contextual list.
3) Left Click the Long Name of the Custom Indicator you want.
4) The Default Settings are as per Vegas.

That's it.
You can change the colours of the Fibs etc by Right Clicking on the indicator in the chart and selecting Properties.

Sorry for the detail but I've been asked this kind of question before and since I have no idea how familiar you are with VT, I thought it best to do it this way.

Good Luck and may yer pips pips boil o'er
B

That worked perfectly! Thanks for taking the time!

You're welcome.

B

Haven't backtested it yet but I have read it over several times and took my little side notes and key clue to pay attention to! I will backtest tommorow night.

Thanks again Vegas for creating this file for us. Your time and effort is much appreciated.

- S Power

Hi Vegas,

I have your VWB all setup on MT4, and I was going over a bunch of daily charts. It seems to work very well except in highly trending markets, where price sometimes doesn't even come close to the tunnel area for a long time, and numerous price action trades that look viable would get stopped out for a long string of losses. So I imagine that this strategy is primarily for ranging markets? Do you stay out of trending markets with this model? Thanks in advance.

- dnbae

Page 10:
Use the same criteria when ‘The Vegas Currency Daily’ has more than 2 losses in a row. In this case, the market is in a very strong trend. Stay with it until you reach the last fib number on the daily chart.

B

Got it, thanks, Bemac. I guess I should probably read the document another time.

No prob.
I don't think Vegas developed his entire method in a day and so it's probably going to take a little more than that to assimilate it. There is one heck of a lot of info there.

B

dnbae,

Almost all very strong trending markets where the currency pair is a one-way street, you have what I call a "theme" market.

Of late some "theme" markets are 1)USD/JPY, where for roughly 3 months [Sep 05 - Dec 05] it went from 109 to 121. Here the "theme" was the carry-trade. Everybody selling yen to finance anything else. 2) USD/CAD, where the natural resources of Canada [oil, oil shale, and natural gas] are talked up every day as oil goes up. For 6 months [June 05 - Dec05] you get a move from 1.27 - 1.15. 3) EUR/USD where for 5 months [March 05 - July 05] all you heard was a) growing interest-rate differentials, and b) political problems in the EU. Market goes from 1.34 to 1.19. The point is, keep your ears open for "themes".

If I had given you 'Vegas Wealth Builder' exactly 1 year ago, every one of these moves was preceded by a reversal day at the appropriate fib levels before they took off on their respective runs. You would have been in at the start of each one. Yes, 50% would have been taken off at the tunnel, but the other 50% if held to the opposite fib levels would have caught a large percentage of the big move.

Granted, maybe the last 10-25 percent of the move was missed while things got nuts at the extreme in the huge move, but it's not as if you were on the sidelines watching for weeks on end. If I knew at each black dot it was the top or bottom with 100% certainty, I'd have all the money in the world. Bill Gates would throw his money away for mine.

In every method you must give up something to get something. You can never have it all. What I look to "give up" is market action that in the very long-run only happens once or twice [for a few weeks] every 3 to 5 years. I can live with this. What I gain in return is market action that "accepts" my parameters 95% of the time or even greater than this.

With 8 currency pairs and the S&P, while one or two may be in the "once-in-the-blue-moon" mode, the others surely will not. That's why in VWB I show all 8 currency pairs and explain why the S&P should be in your trading plans. Surely, out of 9 choices, some will achieve the goal of building your account.

Vegas,

Wow, great answer. Thank you for taking the time to explain. I think I can say that we all truly appreciate your time and effort in not only giving away your strategies so generously, but also addressing all of our questions so tirelessly. Thank you again.

I know I have seen this somewhere but,how do you install the indicators in MT4 from Vegas's package.I can not find the info to install.
Thanks

Vegas,

Thank you extremely much for taking time to provide such a detailed and educational reply! I really appreciate it!

Now if I may impose again, I have another question. Please refer to the attached chart.

I took my cue from your second EUR/USD chart in the appendix of VWB.

Do I assume correctly that I would enter on the close of the hammer/hanging man? And since it is it's own recent low, to set the stop a couple of pips below it?

If so, then the trade would have been stopped out on the very next bar.

If it hadn't been stopped out, it would have reached a gain of 184 pips before retracing and hitting the stop.

Questions:

(1) How many pips above/below the recent high/low do you set your initial stop?

(2) You've said you never let a winner turn into a loser. How many pips gain constitutes a winner? How do you know when to move the stop to breakeven?

(3) What would you have done when the 184 pip gain started eroding away all the way back to the initial stop? I have several ideas what I would do, but I'd like to hear your answer.

(4) I can see where emotions and psychology can beat up a trader here. Any suggestions on how to maintain discipline?

Thanks Vegas for your generousity.

Dial

Hi All,
I think this MQL4 indicator will help recognizing candlesticks pattern and will be useful here.
Thank you,
Khalid

Very Cool indicator! Thanks for sharing

Is there anyway to set those fib values on FXCM? I have a Fibonacci indicator that draws the lines but I don't see anyway to set values.

Thanks

Great indicator, thanks very much! It'd be nice if someone could whip up something similar for james16's PA!

I am not registered right now, i will do it next month and try to start working on it, if he allows me . Hopefully.
You all welcome.
KS

Hi all, some of you might have deduced that i'm a tinkerer. One look at my crazy leaning trike and bikes you'd know for sure ( http://accrete.com/hpv/ ). . . well i'm the same in just about every area of life.

( : I'm going to post this in the VWB thread in the public forum and also in the james16group thread in hopes of feedback : )

Soooo, when Vegas stated in his VWB document:


...i just haaaaaad to doooooodle. Here is what i did. As a intro note, the charting package shown is by a company called FibonacciTrader and very nice. It allows the user to overlay a higher period's indicators onto the charted period, i.e. Daily MAs on top of 4 hour MAs.

Below are two images of the same 4 hour EUR/USD chart greatly compressed.
The first one shows how the 55sma on a 4 hour chart (The BLACK line) matches up almost to the pip with an 11sma on the DAILY period (the WHITE line)...and i threw in a "Tunnel" 13maDaily in Aqua for good measure ; - ) The yellow lines are the FIBO numbers off the DAILY 11sma. The outer RED lines are the 233 FIBO numbers out from the 4 hour 55sma to show just how closely the two MAs match up from the different periods...close enough to be workable i think (?)

The second image is the same 4 hour chart now showing the FIBO lines from 55sma on 4 hour chart in RED, compared to the original Vegas_Currency_Daily 28ema FIBOs in Aqua.

Here are the images, and then i have a question for the group below the images. I would really appreciate feedback on my thinking here. THX in advance for any comments...including "Yo Crazy Dude". I've learned one RULE in trading and life; Don't take ANYTHING personally . . . so fire away : - )

http://www.accrete.com/fx_posts/J13G...SnextMAs11.PNG

http://www.accrete.com/fx_posts/J13G...xtMAs11_28.PNG

Here is my comment and question to the group:

My hope of course is that Vegas will share some words of wisdom here. I read in the VWB thread how Vegas arrived at the 24/28emas, and i will quote Vegas post here for reference:

OK, so that is why they are there. Now the reason i even began this experiment is that in the VWB doc Vegas talks about incorporating the 1 or 4 hour "methods" into the Daily method using the smaller time frame charts for possible entry signals.

With that in mind i share the following thoughts:

It was suggested that a possible entry setup might be when there were reversal-type candle formations on the 4 hour chart to then look to the Daily chart for entry signals below or above the 24/28 Tunnel, and i understand this principle. My thought/question is, is there any advantage/disadvantage to using (as i tested/show in the above images) the 11/13 tunnel whereby the 11sma on the Daily is matching up with the 55sma on the 4 hour, seeing possible Daily candle formations at the nearby levels as the 4 hour chart is showing.

My initial thought is that maybe this is not a good thing? Namely that you now simply have two indicators showing the same information?? Though i do know several traders that often trade following the 13sma on the daily charts so the "Tunnel" is close to this and it does have a working history.

As you can see from both images there are candle formations with both the Daily_11sma and the Daily_28ema... though to my eyes over the last year of back-glancing, there seems to be many times larger "hits" on the Daily_11sma. ??

Here is a screenshot of two daily euro charts in mt4. Left is the standard 28ema Vegas Currency Daily, to the right is the modifyed 11sma VCD set up. As you can see there are hits on both. Though i suppose having confirming formations on the daily might by psychologicaly calming/confirming...just playing the devel's advocate, maybe that could get one in trouble? But then again, maybe it makes sense to have them correlate closer? I really do not know. That is why i posted this here for discussion.

http://www.accrete.com/fx_posts/J13G...1sma_28ema.PNG
...and here is another shot:

http://www.accrete.com/fx_posts/J13G...ma_28ema02.PNG

Thanks again for any comments.

A post script post for the above post. I wanted to keep this a seperate thought as it is a response.

You may have noticed that the bottom most image that shows the two daily charts side by side in mt4 has an interesting band/candle situation. One can see that if following the standard 28ema shown at left that you would have possibly exited, or in any case have some emotions come up as the currency rode above the 233FIBO during mid Nov.2004. If one had been following along with the 11sma, the same candles that were clearly outside/above the 28ema were inside the 233FIBO on the 11sma plot.

If going by the rules, would this cause one to exit prematurely?

And in all fairness, looking near the December 6th selloff, would one then take profits prematurely if following the 50%PT at "Tunnel" if following the 11smaFIBO plot shown in the right chart??

OK one more example that i thought was relevant. What about in a non trending environment? It appears in this example that there would have been a more-clear entry signal shown on the 11sma chart at right on October 2nd when the currency bounced off the 89FIBO?? Where as on the 28ema the currency really didn't drop low enough down from the "Tunnel" to indicate an entry??

Much more to this than just picking "11 is heaven" or "28 is great"

http://www.accrete.com/fx_posts/J13G...ma_28ema03.PNG