Every Trader’s goal is to find new ways to identify market moves and trends to improve their trading success. The Vegas Tunnel Method, in conjunction with Elliott Waves, may be helpful in identifying the two most impulsive and most profitable Elliott Waves. Testing Methods, Strategies against an Elliott Wave FrameworkYou may have read my post that discussed. The 1-2-3 Entry Signal, or pattern, can clearly be be explained in terms of Elliott’s Basic 8-Wave Sequence.One of our goals, with this blog, is to evaluate various trading methods, set ups, patterns, etc. Against the background of Elliott Waves.
Software was chosen to make this Daunting Task possible, by doing the Elliott Wave Counting/Labeling. I am fully persuaded that will help us make many more connections between Trading Strategies and Elliott Waves. The Vegas Tunnel Method:Several years ago “The Tunnel Method” was released by someone who goes by the name of Vegas. He, or she, did not want to take any credit for it and freely offered it to traders. Here is what they wrote in the Forward of their report:“Please take the time to read and evaluate this information carefully.
Turn the TV off, kick the kids out of the room, and give this the serious attention it deserves. Every word in this document is here for a reason.I fully realize that most will take the information seriously, but that some will not. That is OK with me. I am not sharing this to gain a single thing from anyone. I do not want part of your profits, nor do I seek any monetary compensation from you. You can share this with anybody, or keep it to yourself. You can even tell all your friends you invented the model.
I don’t care. You are completely free to incorporate as little or as much of this as you see fit into your trading style. I only want you to make money.I believe that by showing you this method, you can give yourself a very profitable income.
This train tunnel appears only in Fallout: New Vegas. Bugs edit edit source Xbox 360 PlayStation 3 There is a bug where you glitch through the floor at a set of stairs and a patch of wall on the opposite side, inside the train tunnel. Falling through the stairs will land you at the far end of the train tunnel. For Xbox 360/PS3 this has been patched. The Las Vegas Convention and Visitors Authority recommends using The Boring Company's tunnel design for its remodeled facility. The tunnel would cover two miles and cost far less than other.
Although I can be the one who relays the method to you, make no mistake, you are the one who has to convince yourself to implement the method and finally push the button. It is not my intention to convince you that “Tunnel Trading” is the way to trade. That job belongs to you through research on your favorite currency pair or pairs. Historical data doesn’t lie. It is there for every single one of us to examine. Every penny you make, you richly deserve. Within a very short period of time perhaps a month you will come to think of tunnels as your own.” Technical Indicators the Vegas Tunnel MethodVegas used the following moving averages, as filters:.
5-period Simple Moving Average (SMA). 12-period Exponential Moving Average (EMA). 21-period Exponential Moving Average (EMA)The “Tunnel” comprises the following two moving averages:.
144-period EMA. 169 EMAThe pdf can be downloaded. It goes into great detail.I have added a Stochastic Oscillator to be used in conjunction with reversal candlestick patterns to help identify entries and exits. It has been found that when reversal candlestick signals appear at tops and bottoms of trends they are more predictive of a directional change when there is an “overbought” or “oversold” condition on the oscillator. The Vegas Tunnel Method – Elliott Wave ConnectionI summarized the Vegas Tunnel Method and illustrated how it superimposes an 8-wave Elliott Wave Sequence, below. Notice how Wave 3 crosses the Tunnel. Click on image to enlarge it.
Then, click on back button to return to this page. Beyond the Vegas TunnelTrader and coach, took the Vegas Tunnel to a new level. She added indicators and developed a total of 5 different trade set-ups. She calls it the Her strategy employs multiple time-frame analysis and allows traders to trade throughout the entire Elliott Wave Sequence. SummaryThe Vegas Tunnel Method was described and illustrated. With the Wave-Labeling help of software we were able to see how the Vegas Tunnel relates to a basic Elliott Wave Sequence.
We noted that, at the point the Price crossed the Tunnel was at Wave 3 in the Elliott Wave Sequence. Wave 3 is most often the longest, steepest and most profitable wave. Elliott called Wave 3 “A wonder to behold.” How would it influence your profit if you could use the Vegas Tunnel to identify Elliott’s Wave 3?UPDATE: Just before publishing this blog post I discovered even more startling information. Although it seems like, more often than not, Wave 3 crosses the Vegas Tunnel I found an example of where a corrective C-Wave crossed the Tunnel. It has been said that the C Wave, in the corrective Three-Wave sequence, is often the longest of the three.It appears that the Vegas Tunnel can be helpful in identifying the two most profitable Elliott Waves: Wave 3 and the C-Wave. However, the Wave Counting MotiveWave software acted like a GPS unit by helping me to know where we are in the Elliott Wave Sequence.It was also noted that has refined the Vegas Tunnel and has taken it to a whole new level.
She calls it the It is well worth looking it over.
Vegas Tunnel Trading SystemVegas is a nickname for a former local trader named Barry Haigh, who achieved fantastic gains as a forex trader. In his articles, he describes in his style his simple trading systems, which could be used in multiple time frames, he carefully explains the theory behind every part of the system. Barry also shares funny and interesting stories from his career and ideas for trading in general. If you desire a simple and comprehensive trading system or you just want to read about trading from a different angle, this article is right for you.How did it start“The hardest easy money you will ever make.”The first thing a veteran trader told me the very first time I walked onto the trading floor, on my first day of trading at the now-defunct Mid America Commodity Exchange, sometime in the late Spring of 1980.Fresh out of exchange orientation, there I am in my brand new trading jacket, with a shiny new trading badge with a red dot conspicuously placed for the world to see. I decided to start my career trading gold futures.I hit the trading floor from the member's lounge like I own the place, striding confidently into the trading pit about 20 minutes before the open.There are only a handful of traders there at this point, but they collectively give me a sneering look, realizing in an instant this is the day of the month when new members are unleashed onto the floor. I come to realize very quickly all newbies are treated like financial road-kill by the veteran floor members.We are there to fund their free-wheeling lifestyle, make the payment on the Porsche, maybe even fund juniors’ college.
We are not there to survive and buck the odds. We are not there to add to the pit population. Step 1First, you need a charting service.Since most all electronic trading platforms have charts with technical indicators, this shouldn’t be a problem.Create a 1-hour chart on whatever currency pairs interest you. Barcharts or candlesticks make no difference.
Overlay on this 3 things: 1) a 169 period 1 hour ema exponential moving average, 2) a 144 period 1 hour ema, and finally 3) a 12 period 1hour ema.The 144 and 169 ema’s create what I call the “tunnel”. The 12 ema is an extremely valuable filter that you will want to have there all the time.
I will talk more about this in the filter section.Step 2Memorize or write down and keep next to your trading screen the following Fibonacci number sequence: 1,1,2,3,5,8,13,21,34,55,89,144,233,377. For trading purposes, the numbers of interest are 55, 89, 144, 233, and 377. Insert the levels into the chart. To do so, click one of the moving averages with the right mouse button and choose properties. In the open window on the Levels tab, enter the appropriate levels as shown. Beware, however, for pairs with five decimal points, the value has to be multiplied by ten, as the system was created for pairs with four decimal places.Step 3Wait for the market to come into the area of the “tunnel”. When it breaks ABOVE the upper tunnel boundary, you go long.
When it breaks BELOW the lower tunnel boundary, you go short.Step 4Stops and reverse are placed on the other side of the tunnel.Step 5As the market trades in your direction, you take partial profits at the successive fib numbers respectively, with the final portion of your position left on until one of the following conditions occur: 1) market hits the last fib number 377 pips from the ema’s, or 2) the market eventually comes back to the tunnel and violates the other side.Example: GBP/USD is trading at 1.8500. The ema’s are as follows: 144- 1.8494, 169- 1.8512. The market breaks 1.8494, and you sell at 1.8492. Your stop and reverse are now at 1.8512.Over the following hours, the market starts to go down. 40 minutes after you put position on, the cable is at 1.8440.You can use for computation purposes either tunnel boundary or the median of the tunnel.Ema’s are still the same, so if you use the median, 55 from 1.8503 is 1.8448. You should have taken part in the position off at 1.8448.The market does nothing rest of the day.
Stop can be moved down to protect the position or left alone at a tunnel.You are now looking for price to be 89 pips away from the emas.Since 55 was already passed, it no longer concerns us in this cycle.A couple of days later, the cable is at 1.8300 and the median of ema’s is 1.8410 1.8400 – 1.8420.You should be out of another portion of the position at 1.8321.Market bottoms here and in the next 2 hours, cable screams to 1.8535. Your remaining short position is covered at the upper tunnel boundary of 1.8420, and you are now long from this point as well. Since you are long, you would now take partial profits at 1.8475 and 1.8509.This is a fairly typical example.If you were to just stick to this basic model, your account would grow very well over time. Las Vegas was built with far fewer percentages in the casino’s favor.In case you haven’t figured it out, this model cuts your losses very short.
By definition, you can’t lose very much on a single trade from your initial entry position. On the other side, you take some quick profits at the 55 level which satisfies the scalper in you, and you have positioned yourself for bigger profits, in the long run, should the market keep going in your favor. By definition, you are letting profits run.The Achilles heel of this model is when the market chops around the tunnel and gets you in and out multiple times for small losses. I will cover how to deal with this in the filters section.That’s it. This is the model.
Fairly simple in its design, and easy to remember. Has all the things every local want in a model, except the quick 2 pip scalps, which you can’t do anyway. Cuts losses and lets profits run. Yet for its design simplicity, the thought behind is more complex. Time to talk about that.
The Vegas Tunnel and Fib Numbers. Why 1-hour charts?Smaller charting periods lead to more false positives, which translates into more losses.By the time you get to the five-minute chart, the bank has you on a string and your account is going to go to them.Longer-term charts, like daily and weekly produce too much slippage at the market price for the final portions of the position. Filters are used to increase overall profitability and/or reduce overall losses.
If a filter does not do one of these two things, then I do not use it. What good is a filter if it raises your profitability by 10% but only gets you into 1/3 as many trades?
What good is a filter if it reduces losses by 10% – 20%, but also reduces profitability on every trade by half? I think you get the point.Here are the filters the vegas team uses. Yes, I have a team. There are 3 of us. We trade GBP/USD, USD/CHF, and the S&P e-mini futures contract. Each has a specialty. Mine is GBP/USD.
We are each responsible for our main pair. One of us is always at the screen when markets are open.
Positions are covered by other partners when away. We only tunnel trade.1.) Put the 12 ema 1 hour on your screen with the rest of your indicators. When everything is at the same price tunnel, current market price, 12 ema sit up and take notice. Whenthe market breaks away from the tunnel, there is a very high probability of a strong market move coming.I don’t need Gann, because this gives me time, the square of time, and price all in equilibrium. When it breaks, it goes.Need proof? Well, go back on your favorite currency pair and check it out.
In the first quarter of 2005, this filter alone produced 20 trades, 19 which were profitable in USD/CHF. As I write this, 1 trade is still on from about 3 handles ago. Since I am not responsible for Swissy, I’m not the guy pushing the button, only monitoring it when I’m at the screen changing stops when needed, etc.
But, the position is still on.This filter is so profitable, we increase the size of our trading position when we see it develop and then happen.When you go back and check it out, you will notice many times how it just misses a move by a few hours. It is an extremely profitable filter.We also define “same price” as being within 5 pips or so of being equal. Sometimes it turns out the signal is exact, but I don’t think you have to split hairs on this. Within 5 pips is good enough for us.2.) We do not initiate new currency trading positions based on tunnel trading during the Asian time-frame.Anything between 5 pm NY and Midnight NY is ignored for entry of new positions.Positions that are on are monitored as normal, i.e., everything else is the same.We will take profits if fib levels are hit. If we miss a move, then we miss a move. A missed move is just an opportunity cost. Chop-chop in Asia will eventually cost you more money than it is worth.3.) News days that can have a significant effect on prices are ignored.That’s right, we skip them for entry of new positions.
Currently, there is only 1 day per month which qualifies, and that is US Non-Farm Payrolls NFP which comes at 8:30 am NY time the first Friday of each month.Positions that are on are monitored as normal.4.) When the tunnel is very narrow most of the time, do not just put stop on the other side of the tunnel. If you do you get whipsawed to death. Use the hourly charts and the most recent hours of support and res. To make the call.If you are a newbie to trading, you will find this to be the most troublesome filter. If you are not familiar with trend lines, triangles, flags, pennants, and support and res. Levels, then go get the education and come back. Simple but necessary advice.I don’t mean to infer that just because you know this technical stuff it’s going to be a walk in the park.
Let’s make one thing clear. EVERY model has its vulnerable spot that seems to increase losses. For tunnel trading, this is one of the scenarios. Putting in the right stop is an art, not a science.5.) We look for clean moves 1 bar through the tunnel.
This means your into profits almost from the get-go. You will not always get clean moves. The longer the market stays in the tunnel chopping around, the higher the probability our entry decision will be made on a break of support or res.
Instead of the tunnel boundaries.6.) We do not trade minor contra-major trend signals in a strong up or down market price trend. If the GBP/USD is in a strong price uptrend, we will not initiate new short positions on a break of the lower tunnel boundary. Because the probability of success in getting past 55 from the ema is not very good. History tells us that, so I’m not looking to be the hero here and say “This time it’s different.” When the market comes back through the tunnel on the upside, we will get back in on the long side.If I have to tell you when the market is in a strong price move, I don’t think you have been paying attention to the price movements of late.In a range-bound market, which we define as a market between 3 – 5 handles or lower in a 5-week time-frame, we trade both sides.Now, that’s all we use. Can you use more?
Can you invent your own? Can you change some of the definitions? Yes, absolutely. Invent your filters, use an Elliot Wave filter, anything you think will help your trading. Suggested Trading System. Do I need to mention money management?I didn’t think so.At a minimum, you should be able to do 3 units to implement tunnel trading. Use the 55, 89, and 144 levels to take 1/3 off at each level.
If you can do 4 units, use 55, 89, 144, and 233. 5 units are the preferable level, and you use 55, 89, 144, 233, and let one unit ride until crosses over tunnel boundary or it reaches 377.Of course, you can make your units any size you want. For smaller traders, a unit size maybe 10,000. If you do not have the money to trade 30,000 of something, then I would advise you to save up and come back when you do. If your account has $2,000 in it, you can easily implement tunnel trading with 10k units.One of the greatest advantages of this model is its flexibility in its design to allow you to choose the level of risk/reward you desire in trading.You can make this as aggressive or as conservative as fits your style.
I will give an example of each. These are just examples,I’m not saying you have to do this.
I’m only giving you these two to stimulate your brain. In the following day and weeks, I am confident you will find an appropriate level for yourself.Example 1 – Very AggressiveThe tunnel is pivot level for buy/sell. Above the tunnel, buy breaks, sell at fib numbers. At 233 an 377, fade the move for a retracement.
Below tunnel, sell rallies, buy at the fib numbers. Use previous fib numbers in the move as stop-loss points. This is very aggressive and would be appropriate for very short-term traders who have a time-frame of day-trading.Example 2 – Very ConservativeUses basic tunnel system with 12 ema. Only initiates on this signal. Looking for the best possible probability trade.
Willing to give up more profitability in return for less risk. Trades three units. Uses fib numbers 55, and 89 for 1/3 each. Leaves the other unit on until 233 or market price crosses over tunnel boundary. Allows trader to catch short-term 1-5 day profit points, and also allows him/her to ride the major trend if one develops.As I said, these are just two of an infinite number of risk/reward scenarios you can develop using this model.This is not some rigid system, where you have to do this or that.
It is adaptable, with no right or wrong answers.This is why many locals from soybeans to bonds to gold and silver, oil, etc. I’ve seen some people who have transformed this into a model you wouldn’t recognize without knowing what tunnel trading offers.When you get right down to it, once you have adapted it into your trading style and personal risk model, tunnel trading will give you all you want.Momentum to catch the bigger moves over time, early profit points that allow you to catch short-term movements, and the lowest risk you can have in a trade because you are only risking 10 -25 pips on each trade. If your odds of success on each trade were 50-50 they aren’t this low, over time you would make a fortune. If you don’t believe me, then do the math.Precisely because of this flexibility tunnel trading is the best model I have ever seen. The 4 Hour Vegas Momentum Tunnel MethodStep 1.Create a weekly chart bar or candle of a currency pair. On this chart overlay a 21 EMA (H + L)/2, and a 5 SMA (H + L)/2. Note that the 21 period is an exponential moving average and the 5 periods is a simple moving average.Now, look at the difference between the two.
As a market rises overtime on the weekly chart, the 5 will rise faster relative to the 21. As the market goes down, the 5 will lose faster relative to the 21. The difference, in pips between the two, measures relative momentum of the market in real-time. Each week, as long as the number of pips keeps rising SMA 5 – EMA 21 from the previous week, the market continues in a bull run.
Once a bull run loses pips SMA 5 – EMA 21 from the previous week, it signals a medium term top in the market. Conversely, once a bear run loses pips EMA 21 – SMA 5 from the previous week, it signals a medium-term bottom in the market.This now gives us with only one week lag a positive probabilistic model in determining which side long or short to initiate trades in a defined period. We are identifying market momentum.Step 2Create a 4-hour chart bar or candle of the same currency pair. On this chart overlay a 55 SMA (H + L)/2, and an 8 SMA Close only.To insert fibo levels, click one of the moving averages with the right mouse button and choose properties.
In the open window on the Levels tab, enter the appropriate levels as shown. Beware, however, for pairs with five decimal points, the value has to be multiplied by ten, as the system was created for pairs with four decimal places.Now, look at the difference between the two on your 4-hour chart. Since we are using different types of MA’s and a shorter time with a relatively longer period, the two will cross many times. We call these MOMENTUM tunnels.So, we now take a look at the weekly chart again and determine that we are in a bull run. We then take a look at the 4-hour chart. We now know that we are looking to long the market and that short positions will not be taken because they have been predetermined to be low probability events for large profits.We now are looking for the 8 SMA to move lower through the 55 SMA. When it does, we carefully watch and notice when the SLOPE of the 8 SMA changes from negative to positive.
It will do this when the 8 SMA stops losing value in one 4 hour bar and gains in the next. This is the 4-hour bar to initiate new long positions with 3 units remember: units are whatever trading size you can handle. When you trade bigger, just adjust the size of the unit, not the number of units. Stops can be placed using technicals support/res/trendline of the most recent 4-hour bars.Assuming the market starts to go up, we stay long until 1) at some point in time the 8 SMA changes slope from positive to negative, at which point we exit the entire 3 unit trade, 2) the market moves up, there is no slope change, and goes to the 144 or 233 fib number from the 55 SMA line, where 1 unit is taken off, 3) the market moves up to the next fib number 233 or 377, again with no slope change, and the 2nd unit is booked.Let’s now assume that the weekly chart determines we are in a bear run. We will now be looking to initiate new short positions only.We are looking for the 8 SMA to move higher through the 55 SMA. When it does, we carefully watch and notice when the SLOPE of the 8 SMA changes from positive to negative.
It will do this when the 8 SMA stops gaining value in one 4 hour bar and loses in the next. This is the 4-hour bar to initiate new short positions with 3 units.
‘The trend is your friend.’ Market colloquialismIt should come as no surprise that I believe most of you are wasting your time and energy on scalping and/or day-trading. The first step to take is to lengthen your time horizon for making money. Call it one of the pillars of ‘Vegas Law’s Of Trading’.
Wealth, from trading, is directly proportional to the length of time you base a trade. The universe of time being from seconds to days not weeks and months.I receive many emails from people who tell me they cannot implement the 1 hour and/or the 4-hour tunnel methods because they either have to work for a living or travel quite a bit for work or don’t want to sit in front of a computer screen all day and night. They all ask what strategy can work given these restrictions. Move to the daily charts and implement what I call ‘The Vegas Currency Daily’.Step 1Create a daily candlestick or OHLC bar chart if you prefer for any currency pair.Step 2Overlay on this chart a 24 EMA exponential moving average and a 28 EMA.
This is the daily tunnel. Calculate the appropriate fib levels for the currency pair. Insert the levels into the chart. To do so, click one of the moving averages with the right mouse button and choose properties. In the open window on the Levels tab, enter the appropriate levels as shown. Beware, however, for pairs with five decimal points, the value has to be multiplied by ten, as the system was created for pairs with four decimal places.To insert the fibo levels into the chart, click one of the moving averages with the right mouse button and choose properties.
In the open window on the Levels tab, enter the appropriate levels as shown. Beware, however, for pairs with five decimal points, the value has to be multiplied by ten, as the system was created for pairs with four decimal places.I have scripted a plug-in called ‘Vegas Currency Daily’ to use on the daily charts. It will plot and draw the tunnel EMA’s as well as various fib levels three on each side of the tunnel per model #. Download it and.When you open ‘Vegas Currency Daily’ you have 4 input models fib numbers to choose from. They are as follows:Model #1 = 89, 144, 233Model #2 = 144, 233, 377Model #3 = 233, 377, 610Model #4 = 377, 610, 987For the following currency pairs, use the following model # on your daily chart.EUR/USD – Model # 1 AND Model #2. Overlay #2 after you have set up Model #1. Just go back and do #2.
This will now produce an overlap of #1 and #2 And produce 4 fib lines on both sides of the tunnel for a total of 8. You will now have fib numbers calculated at 89, 144, 233, and 377 from the daily tunnel.GBP/USD – Model #1 AND Model #3.
Overlay #3 after you have set up Model #1. You now have 5 fib lines on both sides of the tunnel for a total of 10. The fib numbers are calculated at 89, 144, 233, 377, and 610 from the daily tunnel.USD/CHF – Model #2. You now have 3 fib lines on both sides of the tunnel for a total of 6. The fib numbers are calculated at 144, 233, and 377 from the daily tunnel.USD/JPY – Model # 1.
You now have 3 fib lines on both sides of the tunnel for a total of 6. The fib numbers are calculated at 89, 144, and 233 from the daily tunnel.AUD/USD – Model # 1. You now have 3 fib lines on both sides of the tunnel for a total of 6. The fib numbers are calculated at 89, 144, and 233 from the daily tunnel.USD/CAD – Model #2. You now have 3 fib lines on both sides of the tunnel for a total of 6.
The fib numbers are calculated at 144, 233, and 377 from the daily tunnel.EUR/JPY – Model #2. You now have 3 fib lines on both sides of the tunnel for a total of 6. The fib numbers are calculated at 144, 233, and 377 from the daily tunnel.EUR/GBP – Model # 1. You now have 3 fib lines on both sides of the tunnel for a total of 6. The fib numbers are calculated at 89, 144, and 233 from the daily tunnel.Step 3We are interested only when the market gets to the following fib numbers per appropriate currency pair.
They are as follows:EUR/USD – When it reaches the third fib level 233 or higher.GBP/USD – The third fib level 233 and higher.USD/CHF – The second fib level 233 and higher.USD/JPY – The second fib level 144 and higher.AUD/USD – The second fib level 144 and higher.USD/CAD – The second fib level 233 and higher.EUR/JPY – The second fib level 233 and higher.EUR/GBP – The first fib level 89 and higher.Once these fib levels are breached, we now look for specific technical indicators that signal a reverse in trend. These are in no importance of order 1) Reversals, 2) Spinning Tops, 3) Hammer and/or Hanging man, and 4) Inverted Hammer and/or Shooting Star For those who need a quick lesson in Candlesticks go to the following website:.Step 4 – Strategy1) When the black dots are above the tunnel, initiate short positions. When the black dots are below the tunnel initiate long positions.
It is important to remember that just because the market breaches a fib line, it doesn’t mean it’s time to enter a position. We must wait have patience for the market to tell us when it’s over. We want the market to exhaust itself before we enter.2) Stops are placed above the recent market high for short positions, and below the recent market low for long positions. An example will clarify. Go to Appendix B and look at chart 5 GBP/USD. The first black dot on the chart is a reversal day about 8/17/05 at the fourth 377 fib level. This is our signal to initiate a new short position at approximately 1.81 and change.
The stop would be placed above 1.8190, the most recent market high.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 the position is raised to an appropriate profit level or breakeven.4) The last 50% of the position is held until we get the opposite signal on the other side of the tunnel first part of step 3.5) If you have 2 losing trades in a row, it’s a message that the market is in a very strong trend. You, therefore, must not initiate a new position with appropriate stop until you get a signal at the LAST fib level on your chart. In GBP/USD, for example, this would be at the fifth 610 fib level.
If this leads to a losing trade, then we must wait for the market to come back to the tunnel and start over.6) I have no problem for those who wish to adjust the last 50% of their position to something else. Perhaps you will trail the market with a stop, or look to get out, for example in a bull run, with a violation of the previous days low. Maybe you have something else in mind. That’s OK because this is not trying to fit a square peg into a round hole.I think you can see quite clearly this is a very profitable strategy in all currency pairs.The key here is discipline.Although there are some losing trades any method or system will have them, and if they don’t run away as fast as you can, in the scheme of things our trading plan they are very small versus our winning trades.This is the “Holy Grail” of trading. What I mean is that once you have a winning trade, you’re holding the winning cards at the table. Your options are infinite, and the pressure of holding a losing position is not present.The one remaining thing I would like to say is that I wouldn’t get too nit-picky about the candle formations I look for.My spinning top may not be the exact textbook version, but I guarantee it is close. Same with the other signals.I’m not trying to be a candlestick guru, dissecting textbook versions to be perfect.
All I’m attempting to do is find where the market exhausts itself for a nice move in the other direction. Will this be the start of the next big trend? Who cares?This is PART I in implementing the ‘Vegas Wealth Builder’.You pick the currency pairs you are interested in trading. Some people may be conservative the crosses, and AUD/USD for example, others may be very aggressive GBP/USD and EUR/YEN for example. It’s your choice depending on your trading style, tolerance for risk, and the size of your trading account.You also pick the size you trade, how you trade spot or futures on Globex, and where you trade brokerage house based on what’s best for your situation.For those not inclined to try and trade the market with the 1 hour or 4 hour tunnel methods or any other method or system for that matter, currency pairs should represent approximately 60 to 80 percent of your trading equity. All information provided on this site is intended solely for the study purposes of issues related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments.
Trading in financial markets is a high-risk activity! FTMO, CSO does not provide any of the investment services listed in the Capital Market Undertakings Act No. 256/2004 Coll. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.