Tango46's Commentaries
VP Newsletter Article
In recent issues of the bi-weekly Vantagepoint newsletter, I've described a trading approach using the Vantagepoint software to trade the USD/JPY pair.
In a nutshell, the rules are:
Enter long when:
- Predicted neural index changes from '0' to '1'
- Price closes above all 3 predicted EMAs in the Triple EMA set, on the same day as the change in neural index or 1 day later, max
- The Predicted Long Term Difference indicator is increasing (i.e., slanting 'up')
(& Enter short when the opposite of these occur)
For longs, set SL 20 pips below the analysis day's low (20 pips above analysis day high for shorts); set profit target 100pips from the close of the analysis day; and,
Exit the trade when
(1) the SL is hit; or
(2) the profit target is hit; or
(3) the trade is in profit at a daily close.
In the Newsletter, I discussed and demo'd this method several times during the year.The attached chart shows the result of trading this method thru 2009 starting with a $5,000 account, risking only 5% of account balance on each trade.
The bottom line? 38 trades, 89.5% win rate, and 76% gain in the account. (Ending balance $8,813)....
Sure, there are traders who make that kind of return in a month! -- but there are also traders who would be very happy to just be 'in the black' for a change. This is a very straightforward method that can help make that happen... I continue to trade it in my personal account, and love it.
Check out the chart below, and if you haven't seen them, the Newsletters can be found under the Education tab here on TraderPlanet
Cheers All, Good Trading!
Tags: forex | vantagepoint | trading-method
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