flatline. verb. fail to increase; remain static.

The headline is the dictionary definition of flatline.  In trading terms, it is about right.  That’s pretty much what most markets did today.  I watched none of them as I was busy coding a few enhancements to EnigmaSignal “Quant Trader” (EQT).  Yes, we have a name for the product.  That’s what we have built, a personal quant trader.  A Quant Butler if you like.  Personally, I’d like it called Joe 90 after a hero of my youth (see video below). Brits and Aussies will know why.  Americans probably not so.

The great thing was EQT kept working for us.  Right now we have two nicely profitable algos coded and we have another 4 ready to go.  All well tested and now running with real money.  Anyway….todays trade of the day comes from our HTF50 trade type.  Thats Higher Time Frame (scenario) 50. 

Long and detailed set of rules behind it, but it delivers. 

Usually 2-3 small losses a day and a nice winner.  With a risk/reward setting for us of 2:1 that means it delivers a consistent 50 ticks a day (25 forex pips).  That’s 6525 pips on an annual basis, which we like very much.  And that’s from one trade type.

I ended up as a late entry trade but still delivered 150 ticks or 75 pips.  A nice $570 profit with a maximum risk of $133.  Quite happy with that as a risk-reward.  Notice the stop chases up the trade.  Fully adaptive to market conditions (and also configurable for aggression levels).

The real key?  Would I have taken this trade?  I don’t think I would in all honesty.  I wouldn’t have taken the two losers either, but they totalled 11 pips so no big deal.  In fact, I wouldn’t have traded today and would have been $570 worse off for it. 

As from 10pm UK time, I will up our individual trade limit to $200k on forex and 4 futures contracts.  Two trades at a time but asking EQT to monitor 10 markets.  Something I know a human cannot do (and neither can a scanner!!). 

As ever, happy trading.  I will keep you informed of progress.

Meanwhile, enjoy Joe 90.

New trader update – results continue to improve

It’s about 8 weeks since we last mentioned our new 19 year old trader.  Then he was brand new to trading and started off nervously but making small profits every day.  Where are we today?  Well.  Here is his trade screen.  A few tiny losses but a raft of profits. 

You’ll notice the trade summary is from his phone.  Why?  because he trades from the phone.  And he gets his chats from the broadcast unit that we have for all of our traders when they are on the move.  

He started with a $10k account and is averaging 4% per week returns.  That means he gets his money back on EnigmaSignal in just 12 weeks, trading very safely.  What a great way to trade and make a second income?  Way to go Samsung and EnigmaSignal.



Two Hearts

Two hearts, believing in just one mind
Beating together till the end of time

Those are lyrics from a Phil Collins song, for the movie “Buster”, which was, of course,  about The Great Train Robbery.  But it could just as easily have been written about the movements of the S&P and USD/JPY.  These two instruments are highly correlated – in fact, the USD/JPY is almost a proxy for the S&P.  

Have a look at the chart below.  On here you can see the chart shows the S&P500 with the USD/JPY overlayed in blue as a line chart showing the closing price of USD/JPY over the same time period. Notice how they move very closely together.  

Why is this useful information?  Two reasons.

First off, be very careful if you see a chance to trade both of these at the same time.  You could double your profits of course – but your losses will go the same way.  Be patient and trade the chart that looks the best.

Secondly.  If you have a smaller account and trading an eMini is a little rich for you at $50 a point, then trade a smaller amount of USD/JPY.  You’re going to be able to get in on the moves, but with a lower level of risk.  And there is nothing wrong with that.  Consider it a way to build up your account until you are ready to trade the eMini or just keep trading forex. 

Either way, EnigmaSignal will give you high-quality trades.  And plenty of them.

eMini and GBPUSD profits

Not a lot to say today.  The markets were a lot quieter.  I actually didn’t trade all day as I has so many meetings and a blinding headache.  CNBC was a great meeting though, and I look forward to being a regular commentator on their active trader show.  I think we can really add value to that.  I was sitting on a couple of positions from yesterday to see if they really made gains.  They did OK (see below) but didn’t pull up any trees.  So.  A short blog.  The new training course (completely free) launches soon.  That should be exciting.  Other than that … a very quiet day.

Dow drops over 1000 points. We do just fine.

Crikey.  It was a rock and roll ride on the indexes today.  More rock than roll.  FX was a little easier and we did OK.  Not great.  But acceptable. 

Our sequence of EnigmaTrades?  8 + 61.8 + 20.2 + 34.4 – 18.9 – 20.3 for a total of 85.2 points.

That’s not a bad sequence, the two losses though are a significant amount of points but happened over a number.  I should have been flat, but stupidly I got distracted by some new math and forgot to set an alarm.  Banged out at poor prices, but totally my fault.  

Not to worry though.  A good day overall. 

I go into the night carrying some positions.  I very rarely do this but we are at (I believe) a major change point and I will do it then.  My daily chart for GBPUSD is amazing.  The daily has been caught in and above two swarms for 15 trading days,  Not anymore.  It has left with a bang.  And now we have a target zone of 1.3746 to 1.3740.  That’s a long way down.  Same situation on other charts.  For that reason, I am carrying an overnight set of positions.  For me, that is crazily rare.  But so far they are looking good (look below the graph). 

Goodnight all.  See you in the room

 OK so far.  let's keep it coming please.
OK so far.  let’s keep it coming please.

A first video attempt …

We’ve had a number of people asking us to come up with a series of training videos.  So that is exactly what I have spent a few hours creating.  It’s the first attempt. 

There will be a series that cover long trades, short trades, breakout trades, rotating markets, trading stocks, indices and more …… over the next few months a complete library will be assembled for trader educationn.

But for now, there is only one.  We have pitched it at beginner EnigmaSignal traders but have included a little bit of the theory of trading.  It is about 15 minutes long.  In our opinion that is 15 minutes worth spending.  Trading is a business.  Invest the time.

Caravan dreams

Today we tried a new strategy.  Every trade that complied with all of our rules, was taken.  Small size but taken nevertheless.  There was a real flurry of trades and nine were taken overall for a total of 93 points in the end. 

It was an incredibly tough and choppy day.  At the end of it I really needed a beer and so I went for one.  I felt exhausted.  When I meet people and tell them I’m a professional trader they always start by assuming that it’s a relaxed job with plenty of freedom.  It can be.  But often it isn’t.  Trading is tough.  Mentally and physically.  

Got to be honest, one of the best trades was down to an error.  I set my stop wrong and went for a walk.  It was a damned lucky mistake. Was supposed to be a 42 stop buy I fat fingered and hit 24.  I didn’t even check my account until a few hours later when I put my next trade on, and I was blown away to see it had hit my limit, albeit via a low that was 10 points lower than my stop was supposed to be.  Sometimes the God of the markets shines on you.  Today she gave me 54.1 points of profit and saved me 20 points of stop losses.

And there we have it.  An honest assessment?  I traded badly today. 

Without pure luck, I would have had a losing day.  I didn’t but I probably deserved to. 

Tomorrow is quite literally another day.  I’m going to do what I always do when I have a bad day.  Take some time off from actually trading and just do something different. 

Professional trading?  Yea, truly it’s a dream life.  But it’s not easy.  It does have benefits though and in about 18 months time I will be living my dream.  An F150 truck.  An Airstream caravan with full 4G connectivity.  I shall travel America for a year, trading form my caravan.  Freedom.  What other jobs can you do on the road and suffer no real disadvantage over being in an office?

Surely that’s the ultimate trade? A crappy office and commuting for freedom and the open road,  I can’t wait to be long one lot of that.