Vegas Wealth Builder - Part I

Hi Christian,

I think the swissie set up was solid! I just missed it! and your right it never looked back. Congratulations!

If your interested here's how I missed it. When I miss a set up I don't chase it. I just wait for the next!

Congrats on a good day again!
HJ

I am pretty new and I didn't read yet about James' method. Hope to do this soon.
I entered looking at 4H candlestick charts and using something similar wiht accrete on post #83, but substituting RSI with force index.
The funny part is that I discovered this thread in the same day I entered the trades. After I read the posts and the document from Vegas, I added the indicators to the chart and I almost did't believe what I've seen. Everything looked so clear and simple.
Sure not all the entries in future trades using this method will be so easy, but this particular case give me more confidence, just when I needed it.

This puppy is lookin' ripe!

I don't have a handle on Vegas' Asian range yet but I "Think" (uh oh) I get the concept.

FYI I'm using the range from @ Tokyo open to London open and finding 50% ret of that range.

anyway heres my 2 pips!
HJ

Iv'e been wondering this myself and the apparently parodoxical shift to electronic platforms with realtime charts which would give boneheads like me a chance!

I can't imagine competing against Larry Livermore in the Bucket shops!

I am so humbled by these cats......

Vegas, your reply was most satisfying! Thank You

HJ

Also GBP/JPY looks interesting to me. On the daily chart it touched the fib line, and on 4h chart I see a doji evening star and bearish divergence on force index.
I am not sure if it is enough to enter, but will see on monday.

How can I insert an image hosted on my computer?

I also dont quite get the 50% ret on the Asian thing, nor the zooming down to shorter time zones in order to optimize the entry timing.

I hope Vegas will have time to comment further on these points.

There are different rules which could be added or applied but this is the general idea of my thinking.

I would like to hear feeback.....I am pretty firm in this tho it needs to be backtested for profitability.

HJ

I think that several of us are sorta grappling with this concept. I believe I'm getting an "inkling" of an idea but I would hate to send someone down the wrong path.


VWB- Chapter 3 deals with the integrating into the 1hr and 4hr models.
the chart that I posted above shows a snippet of a 4hr model which MAY CONFIRM an impending move


Meeee Tooooo! Or anything else for that matter! Can't wait!
HJ

HeavyJ,

I think the answer to your question asked on post #168 can be found in the document from Vegas, Step 4, Strategy:

3) After initiating a new position, and stops are in place, we look to take 50%
of position off at/or around the tunnel. In other words, we book half the
position for a profit. Stop on the other 50% of position is raised to an
appropriate profit level or breakeven.
4) The last 50% of position is held until we get opposite signal on the other
side of the tunnel [first part of step 3].

About zooming down to shorter time frames, that's what I understood from Vegas document:
With the 4 hour tunnel method, I am inclined to use ‘The Vegas Currency Daily’ black dots as guideposts for determining whether to be long or short from the signals.
Because I am still learning English, I am not sure if I understood well what Vegas want to say, I mean if he use signals from daily chart to enter on 4H charts or he use signals from 4H chart to enter on daily charts.
Maybe he will be so kind to comment about this.
I used the last variant and it worked very well for me.

Regarding the current situation with eur/jpy (and maybe gbp/jpy), as long as we are using different approaches but the conclusion seems to be the same, maybe we are really close to catch a new move.

thanx Pal

Thought I was going nuts for a minute!
HJ

I find myself sitting here feeling like a vouyer watching good people helping each other. I started trading in Sept 05 and managed to niavley lose $8k in real money. I have since then become addicted to learning how to trade properly. I have researched the net every day, read 6 books on trading, (3 to go and 2 still on order) to try to learn as much as possible. My demo acct lost $12k in 1 month!
Since finding your forum 2 weeks ago I have started to understand some of the concepts I have been reading about. The generocity of spirit shown by all in the forum is amazing. The Vegas day system in the last few days has put back over $8k into my demo acct!!
Vegas and Dialist, you may not be aware of the power of your generosity or what affect it can have on another individual. You have inspired me to help others in all aspects of life and for that I am also greatful.
I hope in time to be able to add constructive insight to this forum and in the mean time I will remain a greatfull vouyer.

Where can I go for help with instaling the plug-ins?

Hi Lindsay, and welcom to the forums. I know this next tid bit is a bit out of thread context but it really got my curiosity going. Before i ask my Q, Does anyone know if FijiTrader has a public side to what he has going on in the James16Group private forum? Me thinks that Lindsay would enjoy the read.

Anyway, my Q and thought is that any risk management system for a new trader that would "put back over $8k into my demo acct" is a tad bit to "risky". It would be suggested by much more knowledgeable individuals on this forum that trading in your demo account like you would in your live is most beneficial. FijiTrader (who is a wonderfuly-wise-filled-fellow) promotes the use of "micro" accounts. These are accounts where a pip is worth 0.10 USD...yup, you read it right, a whoping 10 cents a pip controling $1k of currency. This way the emotions will warm up to the idea of trading and your wins/losses effecting your "system" of stops/limits, letting profits run and cutting short your losses, etc. I will assume that the $8k into your demo was done on a standard $10 a pip demo?

My closing thought: Lindsay, you are on the right track being plugged in here. Keep reading and demoing, don't rush back into live trading until you've got a good demo track record with a system that fits your style, begin trading in micro lots and grow a small $3,000 or $5,000 demo account trading no more than 1 to 2% risk per trade, and if you can search out FijiTrader's (he is a leader in the same private forum that Dial is a leader in) great info on trading psychology you will be well on your way to your dream of becoming a proficient trader.

Cheers

Hi there SD, easiest way is to unzip the files (if needed) then find your Meta Trader 4 folder in the Program directory of your PC. Then Open experts folder, then indicators folder. Drag the new indicator you saved on your PC into this open folder and then start up MT4 and the indicator should be listed under "Custom Indicators" in the navigator window.

Cheers

P.S. there are also many free tutorials on MT4 to help w/Q's...your favorite search site should help.

Got it and thank you!

I don't visit this forum as often as I should and I post even less. It's mostly becuase I'm one who doesn't like to get overloaded with input as my trading style is relatively simple and I feel too much to think about confuses the issue. As far as posting I seem to be somewhat abrasive and stir things up just by my revolutionary nature so I don't like exposing good people to my not so pleasing(and somewhat disturbing) personality.

It's just that when I started reading this thread I thought to myself. 'Hey, this guy is using my method, too'. I'm very excited to find someone using a very similiar method as my own. I've been developing this method over the past 3 years with the past 2 really starting to come into focus with regard to entry and exit strategies.

I just want to thank you Vegas for compiling this for people and explaining it as well. You are a more patient person than I. I haven't taken the time to read the books you have offered yet as I really resist adding too much info to my headspace but after reading this thread I'm sure the info added won't clutter so much as it could help crystalize many of my ideas that I use anyway.

I'm going to add a couple of charts to this post to help illustrate some of my ideas in combination with some of what Vegas has offered and I hope that it is of use to someone...anyone....

This is my method of madness in one line. 'Law of Averages'. Just like Vegas uses the extreme fibs as a first condition so do I with my method. I use a 'range' on the edges that I will either long or short from knowing that extremes eventually give in to the median even if the median has been moved by strong trending action. I also take into account the setup of the SMAs and EMAs(which I show in the second chart) and their relation to this 'range'. I, too, like to use the daily, 4hr and 1hr charts to establish a confluence in extreme fib range setups. With the daily taking the lead signal for direction of position, then the 4hr and 1hr charts for the best positioning of entries so I'm with positive positions more often with my trades while I wait out any possible waffling or muddiness that may transpire over the ensuing days after my entires.

http://img36.imageshack.us/img36/926...apclean8ah.jpg

The first chart has just Vegas's fibo bands and his tunnel(although I didn't use all of them given by Bemac, only 2 of them) from code that Bemac was kind enough to provide to the forum that I plugged into Vtrader. I also have the slow stoch(5,3,3,S) that I use to help distinguish when a move is possibly 'exhuasted' and could be ripe for entries or exits. You will notice that I marked and numbered each time it made first touch on the horizontal lines(at the 20.00 and 80.00) and shown the day(candle) of first touch. The second, trailing touch(the 'b' arrow on the chart) usually happens the next day and both of those days provide great entry levels. Many times it's a beautiful reversal, picture perfect for us to capitalize upon. Other times it signals the beginning of multi-day stretches that provide many opportunities to enter. A few times it winds up being overrun by the trend and could cause the cautious trader(with tight stops) to stop out on initial entries. Even still those initial touch days provide levels for entires and if stops of the trader allow them to remain(and also with possible additional enties in even better positions for the more aggresive trader) there is always(and rarely you get to say that) opportunity(typically over many days) to close them in profit. There are times when we get the stoch first touch yet the price is not in the fib extreme range. While these don't make good entry points they could provide good points to close off exposure so as not to get profits munched by reversals.

What I want to point out is when the fib touch that is basis of the Vegas method and the intial slowstoch touch happen together it's good news. In the time the stoch takes to roll over sometimes it would too late to wait for and have missed the best levels for entry. I like to start opening small entires at first touch(of both leading and trailing stoch lines) and continue to add as price action dictates. Also it's interesting to note the price action as the stoch does roll over and the 'return' touches take place can sometimes be exit point days for retracement against a strong trending market for those who want to secure profits. Or in a muddled market where the price action is hanging out in the extreme fib ranges over many days the 'return' touches many times signal the end of muddle and begin the break back towards the tunnel or as I like to call it the 'core' of the trend channel. These return touches are given much scrutiny by me as well they can really help.

http://img17.imageshack.us/img17/795...svtsnap8ri.jpg

If you look at the second chart I have here you see a little more of my method of madness as I've added some SMAs and EMAs that I use to help me understand what I like to call 'gravity'. Sometimes the price is being pulled towards a certain point then it goes and runs off on it's merry way afterwards. Why? I don't know why, althoughwe all seem to be aware of a multitude of supports and resistances at any given point of trading so sometimes it's hard to determine which one will have influence. But using EMAs I often get to see where it wants to go if in fact the price action is behaving in a way that I don't understand(muddled, overunning, whips). The 'tunnel' as Vegas likes to call it or 'core' as I do provides a clue as to the 'gravity' of daily trendchannel. The EMAs provide clues to the 'gravity' in a different way. It's a longer term period most definitely but I wouldn't really call them weekly or monthly even if they have some connections to what is going on in weekly and monthly timeframes.

You can see times when the price action is muddled or overunning often it's because price attempting to make a touch on one of those EMAs and once it satisfies this need to touch it whether it be a quick strike or a number of days ranging around that EMA it begins the return to the tunnel/core. There are times when there is a quick, clean reversal and often it's because many if not all of the EMAs are to one side of the price or the price is ping ponging between the different EMAs above and below it. I altered the EMAs I displayed from the ones I use normally(50,100,200EMA) because I was hoping to find ones that seem to interact better and the ones I have on the charts are ones that I settled on(69,169,209EMA). But to be honest sometimes I think different ones work better at different times so feel free to experiment with different ones that each trader is more comfortable with and the particular currency pair seems to interact with better. There are SMAs(7,13) that I use as 'hot' range not so much as a signal but I like to use them to find the best positions for my entries according to the daily chart's 'hot' range. You can see how the price action interacts with these SMAs and a particular trader might have a different preference of hot range SMAs, like 6 and 12 or 8 and 14. Just get to know the ones you prefer to use I think most of them can be useful once the trader becomes familiar with how the PA acts with the ones they prefer to use. I really look hard at the way EMAs and SMAs are set up as they do play into the price action and give me clues to possible future price action.

On the most recent activity(as of right now) I would like to point to the chart history(the second chart with EMAs) and most specifically the May-June Euro swoon. Most people would be like 'Well the signal's are counter ones to the trend, but I want to be on the big move down.' What I want to point out is how all of the EMAs(and including the tunnel/core) are compressed tightly into a two penny range providing a strong base for the deep move. We have a very similiar setup right now that in my opinion could be preparing for a strong rally towards 1.25 over the next couple weeks and possibly more over the next couple months. So for those who want to be on that ride up they should be keeping a close eye on price action the early part of this week. There could be move southward to 1.20 before it makes the trip to 1.25. This is actually the first time I'm seeing this type scenario happen as it happens realtime with the compressed EMAs providing a possible base for a really big move. I didn't see it unfold last May/June the way I'm seeing it now and didn't have that compression type scenario identified before. So this is really still a learning period for this type of strategy. As you can see the compressed nature of the EMAs doesn't happen very often so it's a rare treat we're going to get to see unfold. The previous time there was that much compression before the May/June time was back during Sept/Oct of 2004 that resulted in a move from the 1.20ish range to up over 1.30 culminating in the all-time high of 1.36. There is also a recent example from Sept of 2005 where the EMA compression was present when the pair moved 6-7 pennies in a month(touch #15 down to touch #17). So the last three times we've had the same type compression we've seen strong trending right then. Shall we see it again? I'm thinking it's a very good possibility we might.

I would like to add I very much use candleform to help with the identifying of good points of entry and exit. I cannot proclaim enough how much it benefits the trader to become familiar with candleform as it is a direct representation of price action and allows the trader to examine price action in hindsight whether it be day to day or on shorter timecharts.

I hope my long winded post has provided some help to people. There is so very much more info that I could have expanded on and there is really alot of information that can help, but it can often confuse the focus of the trader including myself. I like Vegas's minset of simplicity and have made it the basis of all my strategies since I began studying forex years ago. If people have any comments or question I welcome them as my method is really just a mishmash of things I've learned from others and my own insight that I don't consider as something all that special. I feel we all see the same things at times, it's just that it often gets flooded out by too much input which is why I don't spend alot of time on forums. I prefer to not flood my mind with too much.

Thanks again Vegas and everyone else who has given their time and energy to contribute to this thread and forum.

Hi Lindsay, and welcome to the forum. I applaud your desire to learn to trade properly. I have to admit, the $8K into your demo account in a few days set off an alarm. One very important thing for you to learn in your quest to become a good trader is risk control and position sizing. To help you further along in that area, I recommend you read all of the following thread carefully, and be sure to follow the links I have in my posts in that thread:

http://www.forexfactory.com/forexfor...ghlight=trader

Again, welcome to the factory! Post often and never hesitate to ask questions.

Dial

From reading through this thread, I wonder if the methodology is daily, weekly, monthly fib levels with a particular attention to spike high and lows....

But, alas, speculation on my part. I do know floor traders at the CBOT who use a method with this as there basis for s/r levels.

It is rare to find interesting posts on forums these days, let alone useful posts. Kudos to you all.

xt

Pipsta, great post and info...and i did not precieve any "disturbing" tendencies or anything too "revolutionary" though it was all worth reading!

So in your own studies, were you using FIBO levels and calculating them by hand or similar? From your post i gather that having the Fib levels drawn real time on the chart is a recent addition to your model that has been working for you for some time? ...and what Tunnel MA had you been using during the time prior to placement of the VT code from Bemac?

Thanks for any reply, and again, great info in your post.
Thom