Discretionary Trading
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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!



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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