Forex System Auto Trading

forexalerts1 February 1st, 2010 at 10:39 pm

I have Vantage Point and look at the Short Term Predictive relative to the Medium Term Predictive.

First, you’re using Vantage Point to day trade, but they will tell you that Vantage Point is for position trading. Yes, they’re predicted high/low is very accurate (granted, major moves can be outside the range, but how often do you have a huge 1 day move?), but it only tells you the possible high/low, now what the trading pattern for the day will be.

One thing I could suggest is this: Use the Short Term/Medium Term Predictive averages (the pink and light blue lines, I have mine set on the bottom part of the chart) to get an idea of when prices could be changing direction. Also, when you switch from the 10 day or 5 day average to the predicted high/low, you’ll notice that the short/medium predictive lines will be different that from the 10/5 day chart. What I do is when the short predictive (light blue) line crosses the medium (pink) line on both the 5/10 day and predicted high/low chart, is when I get an indication markets will turn (and it’s very accurate).

When that happens, since you day trade, use your technicals on whatever time frame chart you’re using to take trade only in the direction of the crossover. For example, say you’re watching the S&P 500, the market is trending up and you notice that on the 5 or 10 day chart that the short term predictive has crossed below the medium term, and when you switch to the predicted high/low chart that the short has not crossed below the medium predictive, but is about to, wait till the short crosses below the medium predictive on the predicted high/low chart (that is short has crossed below medium on both 5/10 and predicted high/low chart). When that happens, use your technicals to time short entries, don’t go long. In other words, say you’re using a 5 minute chart. If the market is trending up, and you’re technicals give you a signal for a short, then take the short trade.

When the signals show the 5 minute chart starting to turn back up again, close your short, but do not go long, only enter again when you get a sell signal.

Trade in the direction of the larger trend. You should get less whipsaws and will be trading in the direction of the larger trend. When the short crosses above the medium predictive on both the 5/10 and predicted high/low chart, the only take long trades.

Hope that helps.