Alright. We’ve got some changes coming, this year. All for the good, believe me. Kind of like me…always evolving, changing, growing up. But this year coming up, I truly believe, will be my best year so far. And it’s going to be proven right in here.
Well, let me start from the beginning. What is this anyway?
This is the gateway to the market. Yes. This does tell me…
- What’s going on in the market.
- How are all the currencies relating to each other ( line-up formation ).
- Who’s most in demand.
- Who’s least in demand.
- In a running total perspective.
- Expressed in %'s.
- Matching up (paired) the differences between the most in demand and least in demand…in order, from the biggest spread down to the smallest spread.
The gateway consists of those components. But, I need to tweak some things. Look. I’ve been doing this for the last quarter. This can be improved. Let me explain.
It always bothered me how at the beginning of every month, because of starting over, it took awhile to see the flow settle down. Don’t get me wrong, there is credence to the fact that changes do like to take place around the turn of a month. Maybe because of NFP, I don’t know. But, when you stop the flow and then start it up again, it’s kind of a problem. Look. That should make sense.
I don’t want to interrupt the flow. Therefore, since we are starting a new year, why not let this baby run. I want to run this thing on a yearly basis. That would be the running totals part. But look, actually, this is what I think is most ideal. You want perspective? How about this.
What’s the flow like in the context of the :
I believe I can accomplish all of that, quite easily, by running the totals from the start of a year to the end. Right? Well, this is my chance. All I have to do is, at the end of those certain times (month, quarter, half) is just make separate tables along the way. Basically block off and group up the data in a certain way. It should be self explanatory. In any case, I’ll make it happen as it all unravels. Just watch for it. I surely will be wanting to know all of that.
I just want to see the smooth, running, flow uninterrupted. With the opportunity to be able to block off and also see those interim points along the way. That’s all.
Now. For the elephant in the room. I have to tell ya. I believe in this system. Like non other. And what I’m talking about is believing that the strongest in demand paired against the weakest in demand is the most probable pair to trade, for a profit. I believe that, that concept trends. You know why? Because the numbers don’t lie. It shows itself on the tables. All you have to do is look at my bottom most table, the one that pairs up the spread %'s, in order. The one at the top, which is the biggest spread between the most in demand to the weakest in demand, tends to stay up there. Not only that, but it tends to increase more and more as time goes by. Which only means that the money being spent on it tends to continue to do so. For some length of time.
I’ve shown you, on a session by session basis, how things change so much. It’s more rare than not that one currency will be in more demand for more than one session at a time. Probably because of everybody’s home town has a preference. But, at the end of the day, and only then, can you step back and see who was the most in demand. Likewise the least in demand.
Let’s back it up a little. The elephant. We are all traders. We want to find the most probable, predictable method of trading. Well, this is mine. I’m going to put it to the test. I will put my money where my mouth is. This is going to be one huge experiment.
I will be trading the most in demand currency paired with the least in demand currency. For me, I called it my “Extreme Demand Trade”. I will have one other way of trading, so it won’t be my only way of income. Oh, and by the way, I do trade a live account. Not only that, but I have to support myself by my trading. Needless to say, there’s a lot on the line, when I trade. It’s business…what can I say.
Since I believe in this system, you will be able to see some results. We’ll just stick with pips as results. So therefore, whatever pair you see on top, I will be in it. It’s that simple. And when things change, I’ll duly note it. But, trading is mostly about your position sizing anyway. Not just pips. Risked %…Profit and loss…Etc…
Now, when it comes time when there’s a changing of the guard, for the top pair, this is what I will be doing. I won’t be automatically jumping out of one and into the other. I will keep with the one that has been running, but if another pair takes over, then I will simply get into that one. In effect, I will have 2 trades running, during that time. Only until one of them shakes out, will I then only have one trade on.
- I will only enter a trade at the end of a day.
- I will only close a trade at the end of a day.
- Will keep track and note, periodically, what the top trade runs with, pips wise.
- I won’t be telling you when I add on position sizing.
- I won’t be telling you when, if, I take profit off the table.
- But, I will always be in the market. With that top pair.
This, inevitably, will be called swing trading. I believe in this system. The numbers are there to prove it. Time and time again. And over the long term, I believe it will be profitable.
You know, this is the only thing that makes sense to me. All I’m doing is tracking what the currencies are doing. And the demand that we see tends to stay that way for a time. So, since we, in effect, trade 2 currencies, why not take the most in demand, go long with it, and take the least in demand and go short with it. Voila…there’s your currency pair to trade.
Plus, this alleviates me from guessing which pair should I trade. The market will tell me. That’s the WHAT, in trading. And for HOW LONG, is the numbers. Actually, the %'s. The WHEN, for me is end of day. And the WHY, is because history has shown it to work.
Go ahead, I dare you to look back at all of the numbers in the last quarter. This works. And if I’m wrong…then I guess I will have some lessons to learn. That’s all. That’s what life is all about anyway.
I’m going to prove this thing.
With lessons along the way.