Making Money Today
A very tough trading day. We never really know until the day is over what exactly the FWD is going to look like. Today was a classic death wedge.
You had to know the market was in trouble when even the “Lemmings in Asia” wouldn’t buy it and take it higher. After about 9 hours of trading, gold had a whopping $4 and change range. By the time the U.S. session opened the range was still only about $10.
It doesn’t take much to hit a new high/low when at this time of day the range is so tight. Add in stops and you have a very nervous market trading scene.
The algorithm will most likely not do well on days like today because it can’t be fast enough to handle the swings at the extremes and there is no range to speak of that can absorb slippage and still make you money.
I still made money today, and considering this type of trading day is by far the biggest nemesis of the algorithm, if you had told me yesterday this was going to happen I would be ecstatic at being up $0.01.
The modifications I have made in the algo, in the wake of the type of trading conditions we have seen in the last 8 weeks, allowed me to NOT lose money today. Going forward, as long as we don’t get extremely fast and violent spikes/drops, we should start to see better profitability.
Crude oil?
I’m beginning to think that until Iran is taken care of, one way or another, that crude is going to be less volatile than normal. Normal trade simply isn’t in the market right now. Would be sellers ask why should I sell until Iran is decided? Buyers are bid at every downtick. Not much of a market, and today’s range of 118 at 2:15 PM proves it.
Have a good day everyone.
-vegas
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