Tuesday, 3 January 2012

It's a Whole New World

Happy New Year Everyone!

It's a whole new world. Yes it is. We are still transitioning into what will become the new global financial and economic system.

We are currently in a world of uncertainty. No jobs are secure. No currency is safe. No investment is for the long term. Anything can change.

Jobs have been exported from the first and second world to the third world. The third world is trying hard to become the first world and looks to be on the way to succeeding. What happens to the first world is still to be decided.

We are in a world where all the banks went broke and had to be reinflated by governments. Places where we keep our wealth were allowed to become the customers at great casinos where the bank employees could gamble and if they won then received huge bonuses and when they lost, the loss was ours. Banks are places where we put our savings-our super mattress. Banks are places where the combined savings are lent to customers whose security is beyond reproach. Our savings should not be allowed to be gambled by the bankers on their own speculations.

The transition will continue until governments "get it". In the mean time, buy and hold investors carry all the risk. We day traders continue to milk the cow, day by day. The same cow that the bankers almost killed. Long term has become a week.

In 2012 this blog will continue its course of trying to bring Consistent Profitability to all. Since it started I have taught, mentored and helped several hundred people, many of whom went on to become traders or become more profitable traders. These were people who both attended formal training by seminar, webinar or DVD and people who read the blog and asked questions.

Those of you who have become traders, congratulations! I believe I have proved the hypothesis I made when I started this blog, teaching my daughter how to trade, that anyone can become CP. So many of you have!

After working with hundreds of people trying to become CP, I know that if someone has a back tested and forward walked CP trading plan, they can be CP as long as they are properly capitalized and trade within that capital. 

This year we will concentrate on getting people to CP. If you are not CP, go back to the beginning of the blog and read. And then read what is to come.

We will be looking at two ways of getting to CP: Discretionary Trading and Fully Automated Trading. Both roads have their own advantages and disadvantages and we will explore them and find solutions to the issues that traders have.

Today's chart is the early DAX trading off a 3.5 point Renko chart. Renko charts are difficult to use in autotrading as the wicks are invisible. It's Flo driving. The first trade was a big loser and the other trades almost made up the loss. This algo has averaged over 4,000 euros profit per contract per month over the last six months with an acceptable draw down. There are losing days. In fact there are lots of losing days with an algo, but if it's robust, 90% of months can be green.

1 comment:

  1. enrique42

    I hope you had a good holiday and a good entry this year and to start the year I would like to ask you something EL, please put in the graphs and the VB CVD, because it does not help me to continue my work, thank you.


    espero que hayas tenido una buenas vacaciones y una buena entrada de año y para empezar el año me gustaria pedirte una cosa EL, por favor, en las graficas pon el CVD y el VB, porque sino no me sirve para seguir mi trabajo, gracias.