Quoted from glynfos
Dear Tango46, I am a VP user but version 7. I do not understand your notation PEMA+1? Can you tell me what is the +1? Kindest regards, glyn foster.

The P3EMA+1 is the Three day Predicted Exponential Moving Average typical one day ahead.

It is available in Version 7 as well. When you have the GBP/USD chart open, right click and you select <>. Once the properties window is open, select the <> tab. There are four sections - Actual Market Data, Predicted Differences, Predicted Forecasts and Predicted Technical Indicators. You will notice a <> button in the Predicted Forecasts section. When you have opened the <> window, select the "3 day EMA Typical 1 day ahead" And you are good to go.

Good luck

Pintol2

Quoted from Tango46
In this post, I will set out the rules for my "EZCruise" Trading Method for the GBPUSD.... It has been working well.

Once you see it -- it is like reading a road map -- you can spot high potential trades easily -- they happen frequently -- and you will also know when VantagePoint Intermarket Analysis Software is telling you to stay away.

I am assuming the reader has familiarity & ability to operate VP. If you are currently wanting to learn more about the software - this will give you some insight as well

In the posts that follow this one, I will narrate through a series of 4 trades in Nov & Dec 2008

This method also works with other pairs, although the stop loss & profit target values may need to be adjusted -- depending on volatility and historical movement patterns

All the words that follow may make this seem ?complicated? -- it is actually not.

The examples I will post next will demonstrate the method & hopefully clarify things!

VantagePoint Indicators Used: P3EMA+1 3 day EMA predicted 1 day ahead (this is the short term EMA used in the 3EMA set included in VP - this is the set of 3 emas that come up if you select 'Triple Crossover' to be displayed in the SW) PNI Predicted neural index PStr Predicted strength PTSDiff Predicted difference in short term EMA PTMDiff Predicted difference in medium term EMA PHigh Predicted next day high price PLow Predicted next day low price

Objectives 3 profit targets, 3 trade legs: 100 pips; 200 pips; & run, i.e., until stopped out or otherwise closed

Money Management & Risk I personally choose to risk 2% of the current account balance on each trade, meaning that if all 3 legs of the trade hit the initial stop loss -- the dollar value loss to the account will be 2%.

(Note this is different than risking 2% on each of 3 legs, for a total of 6%)

(I speak of legs because in MT4 you have to actually place 3 trades and manage them independently -- on some other platforms, you will be able to place 1 trade, and specify profit targets & amount of the position to close at each)

Entry The objective is to enter based on a daily close above or below the P3EMA+1, when the VP indicators also predict market movement in the same direction. The most advantageous entries are generally at the beginning of a new trend, and on a day the PNI changes direction. Entries later in a trend, using the same entry rules, are ok and usually also successful, but may be affected by ?trend exhaustion? etc.

For a long entry, what we?re looking for are: (and vice versa for a short)

1.) Closing price above P3EMA+1, preferably on a solid up day. If the closing price hasn?t quite crossed the EMA, but is no more than 5 pips below it, that's close enough....

2.) PNI = 1, preferably having just changed from being zero the day before for an initial entry.

3.) PStr, PTSDiff, PTMDiff all rising as compared to the previous day's values, if even only by a small amount. (Note, I have no requirements on which of these is largest or smallest relative to the others, or above zero, below zero etc -- the only requirement is that all 3 are rising.)

4.) PHigh & PLow rising as compared to the previous day's values, if even only by a small amount.

Stop Loss & Exit Normal initial stop loss is set to 12 pips below the entry analysis day's low for a long trade.

For a short trade, the stop is set <12 pips+spread> above the entry analysis day's high.

This initial stop loss remains fixed in place until the 2nd of the 3 profit targets is achieved -- i.e., 200 pips profit.

For a long trade, when the 2nd profit target is reached, move the stop to BE or the PLow for the next day, whichever is greater. Adjust to the new PLow each day, until the stop is hit. (similarly, in a short trade, adjust the stop to BE or , whichever is less)

Re-Entries If stopped out but the trend continues, and on a subsequent day an entry signal re-occurs, or possibly even exists on the day you are stopped out -- then re-enter using the entry rules as before. Be aware the trend may have lots of life left, or possibly not so much.

Creative Tweaks -- Advanced Topic (Not required -- this is where things get more ?discretionary?)

Stops: If the entry analysis day was a large movement day, when the range between the close (which will be your entry) and the day's high or low (depending if going long or short) is huge -- like 400 to 600 pips as weve seen recently -- I sometimes am able to use 110% of ATR(10) for the entry analysis day, which I obtain from my MT4 platform, to set the initial stop. The stop is set 110% of ATR(10) from the entry price. Sometimes, the ATR(10) is larger than the range between the entry price and the day's high/low -- so I go with the usual initial stop loss approach.

This ATR approach sometimes reduces the difference between the entry & the stop loss by a significant amount on a huge movement day -- which reduces risk and allows a larger trade size -- and, Ive found that 110% of the ATR usually provides enough cushion that the stop is not hit when the trade is going to progress in the desired direction.

Exits: There are situations that occur when you may want to be creative in order to maximize your results on a trade. These normally apply only to trades that have already reached the 2nd profit target, and therefore have a stop loss at breakeven or better.

First, in the case of a large movement day -- e.g., closing price 350+ pips from the opening price -- you may want to close part of the remaining position immediately -- and continue trailing the stop for the remaining portion using the VP predicted high/low as before, or possibly with tighter stops.

In the case of a key candle or series of candles, indicating possible reversal, especially when corroborated by the VP indicators (PNI, PStr, PTSDiff, PTMDiff, PHigh, PLow) -- you may want to close all or some of the remaining position -- and either continue trailing the stop using the VP predicted high/low, or shift to using tighter stops.

=================================== ===============

Read this over, give it some thought; ask questions if you want to, and/or hold them til I get the examples posted & you can review those...

Stay cool... and, Happy Cruising!

I am a VP user but version 7. I do not understand your notation PEMA+1?

Can you tell me what is the +1?

Kindest regards,

glyn foster.