Over the last couple of weeks I have received many e-mails, and questions/comments on chat/forum, about the 1 hour tunnel method we use. I want to thank all who have been kind enough to contribute their ideas regarding the tunnel method. Your questions and comments have helped considerably in creating the new 4 hour tunnel method.
I received an e-mail a few days ago from someone who commented, “I don’t understand. If I had a system that made me tons of money I wouldn’t even consider tinkering with it. Are you nuts? Why are you even bothering with a 4 hour timeframe?”
I answered him by asking if he knew what the cockroach said to a group of dinosaurs. He said, “Adapt or die.” Unable to adapt; well you know what happened to the dinosaurs. Many times throughout the years as we have tried to adapt, the changes have been mostly in the timeframe, or the addition of a filter. The longer I live away from the trading floor, the trend has been towards longer timeframes. Each time, knew ideas and new methods are implemented to help us achieve greater profitability in our trading. This is no different.
The development of the new 4 Hour Momentum Tunnel is a significant departure for the Vegas team. We are changing our definition of what a “tunnel” is, and then focusing on medium-term market momentum to guide us in trading the “right” [profitable] side o