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Surprise!
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Surprise!

by The MoleAugust 29, 2011

I really enjoyed Fearless’ first segment on trend trading over the weekend and did not want to plaster all over it. However I promised you a little surprise and without further ado I give you (drum rolls)….

Tataaaaa!! That’s right – ZeroFX is back with a vengeance. I have changed the tick charts to a 1-hr and 5-min combo just like on the regular Zero. The ZeroFX Lite on the right panel has a VWAP which has proven to be extremely useful on the ZeroES (i.e. the regular Zero) when correlated with the signal line.

There are three horizontal lanes if you will – the first one is the EUR/USD, the second the GBP/USD (a.k.a. ‘cable’), the third the AUD/JPY. You may wonder why I picked the AUD/JPY pair when there are more popular or liquid FX pairs out there. Simply, the close correlation to the S&P E-Mini futures in the past few years makes this a very important currency pair and we definitely want to keep a close eye on it at all times, enabling us to make early assessments as to where equities may swing the next day. As time progresses and market dynamics shift we may decide to swap this one out for something else.

But wait there is more. We ran out of ginsu knives and instead you get a free set of net-lines on both panels. As the old lines stay on after being painted they will remain for a while but disappear after reloading the chart. Reload will be done occasionally depending on how busy the panel gets.

Trading Hours: ZeroFX runs basically non-stop starting Monday 5:00pm Eastern through Sunday 5:00pm Eastern.

Tips & Tricks: We are looking for divergences, of course. But based on prior observations we should also look out for swings above the +1 line and below the -1 line, which often represent buying in the former and selling exhaustion in the latter case. There will often be signals that don’t make too much sense or are ambiguous – it flows a bit differently than the original Zero over on the spoos. So watch it for a while and get a feel for it. Be patient and wait for distinct divergences or signal spikes when taking your trades.

I am still fiddling with the settings and you may see changes over the next few days, don’t let that confuse you and feel free to comment here or on pertinent follow up posts. On that thought – I am still not sure about adding those net-lines and I would like to get some input from you guys on whether or not they should remain.

Now here’s the best part – ZeroFX is now included with the Zero package, which means that all of you Zero subs get the ZeroFX for free!

Enjoy!

Mole


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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  • tradingmom

    Wow!  I may need to learn how to trade currencies 🙂

    Thanks, Mole.

  • Anonymous

    sweet!!!!!

  • Anonymous

    SO AWESOME MOLE!  I have been missing zfx just for the correlations.

  • Anonymous

    Great pick of currency pairs Mole, AUD/JPY is always a great insight to the Risk Trade 🙂 

  • Anonymous

    Great pick of currency pairs Mole, AUD/JPY is always a great insight to the Risk Trade 🙂 

  • Kudos

    I’m happy you brought the zerofx back. I’m even happier its part of the zero package. 

  • Anonymous

    Mole – at first look of zfx, I don;t see many blue bars breaking out like we used to see.  Is this due to the settings change or is that the tape we have?  They were very tell tale back in the day.  I like the net lines.  Leave em.

  • Anonymous

    You may want to look at doing options on the futures as the FX market can be really volatile. 

  • Anonymous

    Most excellent, Mole. It’s a great idea to include the ZFX with the Zero, as it’s now a tool I can use to learn about currencies and correlations. Thank you.

  • Anonymous

    Since you asked for feedback: 

    The netlines are interesting, but ‘clusters’ quickly become unreadable due to overlapping. I’d say that unless you toss into the painting algo a clever offset/display for printing those numbers they should be removed because they rendered are effectively useless.

    Possible alternatives:

    – Only display the last number, the others show lines but don’t print numbers
    – For contiguous, but shifting netlines: does the fact that the netline is ‘shifting’ telegraph any info on expectancy, etc? Are there few enough different telegraphs to simply represent those as line color changes instead of spamming extra numbers?

  • http://evilspeculator.com molecool

    Great question and very timely. Yes, that is due to it running on a minute chart now. I am actually fiddling with the settings to get that back. If I am unsuccessful I may have to change the actual signal lines to ticks whilst leaving the chart on minutes. This is possible with NinjaTrader as it permits equidistant charts – a major step up from many other non-professional chart packages (the only other one I know of is MultiCharts).

    Also, those spikes mostly show up on live data – not historical. Which means I have to keep things running for a while until I know whether the settings are good or need to be smoothed/unsmoothed.

    Hope this makes sense.

  • http://evilspeculator.com molecool

    I knew you guys would like that one.

  • http://thebhbgroup.com TheBHBgroup

    Nice Mole…I am so psyched to see this working again.  I found it to be a great tool for my trading arsenal. Thank you thank you thank you.

  • http://evilspeculator.com molecool

    Yeah, I actually coded the indicator to only paint the current ones. Unfortunately NT does not allow you to remove old lines and they stick around until you reload the charts. Will reach out to NT to see if there is a fix.

  • Fearless

    We might touch 1213 today.

  • Anonymous

    Yup – makes sense to me.

  • http://evilspeculator.com molecool

    I just reloaded the panels to show you how it’s ‘supposed’ to look like and have also reached out to NinjaTrader for help on doing this automagically.

  • omelette

     i know it’s straying outside the rules but what if you used net lines from a higher time frame on the 5 min chart (maybe 15 min)? The bars should have more reliability and it would reduce the number of overlapping bars.

  • Anonymous

    Given that I went long one unit at 1197.50 based on the strength of the Zero, I’d be happy to see that. I’m looking for a break of 1206.75, the high on 8/17.

  • http://evilspeculator.com molecool

    Well, you can use the hourly…

  • omelette

    yeah it just seems like the 5 min chart fills up pretty fast with net lines so i was suggesting a way to mitigate some of that overlap and make the chart more readable.

  • Anonymous

    Mole – the hourly charts say date is 8/28 but today is 8/29.  Am I missing something?

  • bshah

    somehow a shrewd attempt at NFLX keeping it down.. Interesting eh.. when u need to fly high, it sits, when you want to tank, it is no where to be found …

  • http://evilspeculator.com molecool

    There is one more session line afterward – not sure why it doesn’t paint the date on that one…

  • Anonymous

    I began to write: I can’t even imagine what it would be like to be short today and then I thought whaaaaaaaat?  Oh yes I can.  I remember the feeling well.  

    I’m actually up a little as of this moment even though I added my Ratio Spreads after the Gap Up this morning.  I’m thinking about adding a Ratio Spread on FCX (if it holds current price levels before the close. This would indirectly add Gold and Copper to my Oiler, Techie, and Bankster positions.

    Just think according to the news, the “market” is jumping (albeit on low volume) because Wall Street was able to open on time this morning and a couple of Dead Ass Greek Banks Merged.

    Whatever.    

    JTTFT

  • http://evilspeculator.com molecool

    Please – forget the news mate – you keep mentioning them in passing (cynically or not) which means they still dominate your mind.

  • Anonymous

    For the most part, reading the financial news is like reading the Sunday Funny Pages. It holds about the same amount of value which admittedly isn’t much.   I just found it amazing that someone, anyone, above the High School Level could actually print this crap.  

    But in any event, the only thing dominating my mind right now is my 3 Sets of Active Charts including TOS – Prophet, Flexible Grid as well as on the TDAMTD Strategy Desk plus my Quote List.   🙂 

  • bshah

    that’s more pain than baby producing labor … don’t you think..

  • Anonymous

    Well, the Russell 1000 fin. index has hit “duel fib” resistance around 726 (high july 21/low aug 9; aug 15/aug 23, 38.2% 100% respectivly) worth a shot with FAZ. Sub 53 entry, 1/10 size, 40 bucks to my ultimate don’t loose more then 2% of my total account stops.

    Wow 2 great posts from Volar and Fearless! I also found Mole’s “volatility for dummies” post before Volar’s (have not had a lot of time to read Evil lately) and I am glad I did! Made Volar’s easier to understand with that background summation of some of the indexs he used. Maybe someone could edit Volar’s post and suggest reading Mole’s “volatility for dummies” first.

  • http://evilspeculator.com molecool

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    N   E   W    P   O  S   T  !   !    N   E   W    P   O  S   T  !   !   N   E   W    P   O  S   T  !   !

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  • http://evilspeculator.com molecool

    I think that’s fair – one goes through different stages of addiction. Once you realize/suspect that the news are useless (lacking of truth, geared toward manufacturing consent, blatant lies, frontrunning tests, etc.) you then gradually reduce exposure whilst adapting a more cynical mindset. After a while you hopefully let go completely and only glance at the news in passing fully realizing that what is being fed to us is not geared toward informing us but to control and manipulate.

  • Anonymous

    Reduced gold short to -1 and will wait it out for a short entry.

  • Anonymous

    nice