Thursday, April 19, 2012

LEARNING THE LESSONS


                                Pattern Recognition Starts Early

When somebody tells you something, you don’t remember much of it over time. When somebody shows you something, that’s a different story, and you pick up the important details rather quickly and retain the knowledge.

As I have stated here before, trading is simple but never easy. Pattern recognition and probability distributions are our advantage.

We had a hair less than a 1% gain today on a good buy signal from the algorithm. We got long on the signal and then liquidated slightly above the upper aqua line.

I want to focus on the fact that the algorithm was updated and revised to take advantage of the manipulations I write about on my other post: either learn and adapt or die.

Make no mistake, government is not going to go away and back down; until the Ponzi structure is torn down and replaced with free markets, you can expect them to be a permanent market player into the future.

We can’t beat them as traders, they have more money and don’t care about profits, but we can learn their methods and adopt strategies so that we can take advantage of them. That really is what the algorithm is about.

Nobody who plays the game is perfect; no matter how much money and influence you bring to the table your efforts have to have a weakness. Governments [i.e. manipulators] arrogance and heavy handedness ultimately will take gold much, much higher.

This is no different than realizing that the big, intimidating kid guarding you, while playing basketball, can’t stay with you when you take him left. When you figured that out the advantage went to you.

Have a good day everyone.

-vegas

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