GS in action...

http://www.gainspainscapital.com/index.php?option=com_content&view=article&id=161:the-new-rules-of-the-game

... as expressed by GBP/USD. Maybe not the most beautiful head and shoulders pattern, but I almost want to cup my hand under it. Might be unfair to 'isolate' one currency pair and the UK is in deep water, but thought I'd share it anyway.

mo'

if it puts the breaks on more wars, then so be it. 

Hi Steve - you're comments on 30th Sept Newsletter regarding the 30 min $TRANS were very interesting and things seem to be playing out. I take it the ABC correction has now been negated. It would be great if you could provide a brief update b4 the open.

thanks

mo'

had a look around, but couldn't find a link. Matt - could you point me in the right direction, or have it added?

thx

mo

Clearly you would need deep pockets. So you would completely change money management style, scaling right back. The only downside I see is if you a long string of big winners. In this case, you'd only make a scaled back profit for each trade.

Surely this is a no brainer. I'm currently focussed on SRS swing 2. From the stats, the max consecutive losing trades = 6. 

Why not trade a la martingale? In other words, you hit a losing trade. Next trade you double your stake. And so on, until you hit a winning trade. Perhaps it needs to be a large winning trade, rather than a small one, since these seem to happen regularly enough. Then following the large winning trade, reset to the original size and start again. After every large trade, reset to the original trade size. I say this, because following a large trade, it seems to go into consolidation and small winners.

A good place to start would be after a large winning trade. 

No idea how to backtest this (more accurately, I don't have trade station)

comments?

mo'

they have google ads on rhs + offer a premium service if you want more functionality.

looks like freestockcharts

thanks Matt - I don't think it's possible to add the EMA(20) to the ratio in freestockcharts, but I take on board your comments. I was perhaps a little rash at drawing the trend line, it was partly influenced by drawing it too late at yesterday's peak.

mo

darn it... seemed to me the trend broke at 11.45 (see vertical line on attached chart), so I closed the trade before the big push at 13hrs!!!

how to avoid this?

i hope so, i just bought some 

yes it is something I have wondered about and receive McHugh's newsletter, as he is tracking it. Implicit in the newsletter is that he expects to see an Omen before the market seriously turns down. I've just sent him an email to query this point. Will post response, if I get one.

if true, this could be playing it's downward pressure on the USD...

http://www.chrismartenson.com/forum/new-carry-trade-us-dollars-we-should-be-interested-and-concerned/27819

Interesting point of view...

http://www.marketoracle.co.uk/Article13553.html

Hi Matt/Steve

Often on the newsletters, you refer to the q's leading the market. It seems much like gdx leading gld and gdx/gld ratio working well for trading. Have you considered the qqqq/spy or qqqq/dia ratio's? I can't check as I don't have a stockcharts account (but intend to in the next couple of weeks).

thanks

mo'

cheers - a video in due course would be much appreciated. mo'

matt - would you say that gdx/gld crossover is a reliable semi-mechanical system, or can you often see whipsaws or worse?

thanks mo