I found a PDF some weeks back before I went Live trading and only just now read it through, trying to understand how it works. Has anyone else used this method with any success? I know it's been around for awhile.
Just read the pdf and set the chart, 1H 169ema, 144ema and 12ema on USD/CHF.
Oh boy Oh boy, either I set the ema wrong or you trade once in a blue moon, scrolling back in the chart.
Anybody: post a chart when you "think" you got it. Thanks
the red lines are the tunnel, my candles are grey and the 12ma is green close to the candles. yellow lines are the trades an entry and exit when the green 12 crosses the red tunnel. The circled area, the tunnel is horizontal and price jumps up and down across it so what would you do there? Looks like you get big general moves but miss out on a lot too. Am I interpreting it correctly?
I hope my picture is legible.
Edit, I'm all wrong about the exits, I neglected the fibonacci thing so this pic just shows the big moves not the actual trades.
Edit again: if you google 1h vegas method you'll find info on it including some EAs I think.
Yeah, all I'd read so far is that people were ditching the 1H method in favor of the 4H due to those false breaks. But I did not even do any backtesting; just wanted to see if anyone here had used it, since most of what was written about the strat was from 3 years ago.
its not gong to work its outdated and decadent, actually it never did work.
you're not going to make any money with ema crosses and tunnel systems over the long term, simply because they lag. Whatever profit u make in trends you'll give up in ranges for the simple fact markets range more than they trend.
I know u wont believe me anyway but thats ok, someone told me the same thing years ago and i didnt believe them either, and i expect you'll do the same, greed is such a strong urge in us humans, it can't be helped.
There is no way you can win in this business without an edge, ema's and tunnels will not give you any edge.
People think trading is all about discipline and sticking to ur rules, that is true but only if u have rules that work the discipline and psychology come after that. Without an edge ur dead before u start.