Nightshapes

Warning! The previous blog entry has high Lectin content. You might want to talk to somebody about the role of Butyrate trading.

There is 50 shades of red, but I only care for 2.

The pale one is a weak downtrend. It means that price is still above the S-356 where it has to prove itself to be upgraded. How? By failing to make a bottom, failing to make F (full discharge) prints.

When a Tomato relapses (most likely by the hands of the Municipals), the restart would come from the upper Safety line – see below.

This one failed the Municipal Trench, ricocheted to the 2.8 Safety and hammered out a bottom at the S-356 in a rather volatile manner, getting a third start just shy of the Safety.

The directional logic is the feature of the Axel S V1.6

This one below went into a stong downtrend in 4 hours, as it had no hope of making a bottom above the S-356 band.

The following example shows a failure to make a top and a weak uptrend receiving an upgrade to a strong one.

You can see the same thing in reverse: the great scare of the Lower Safety line as well as finding support in the Municipal Trench (aiding the coast through the S-356).

Oh snap, juglling with 4 colours now?

I don’t know & I don’t understand why can’t a man be a man.

In other news, in a moment of weakness I added F3 fades to the W3 trader & ran a backtest.

As a reminder, this is what the W3 could score (without lot size increase beyond 100 lots) from the 30th of November, 2021.

& this is what the W3 + F3 combo could achieve during the same period:

It seems to get increasingly hard to push far beyond the 3 million barrier within 2 years when the maximum lot size for a single position is capped by the broker at 100 lots. (I got to 3.65 million with a version of the Municipal trader once.)

Can you guess what my next move would be?

I am not going to investigate how to optimize the F3 fade, it would be too costly in time and may not be worth the effort. Also, I design these auto trading routines as complementers for hybrid trading where I would only call for the long side help and instead of being at mercy of the broker for spread changes, no stop losses would be applied, instead a gradual 3-step hedging would be implemented.