Setups? What setups?

What are setups anyway? For me, a setup is a snapshot showing a picture of a point in time when there is a perceived direction of price for the next minimum scale out distance with sufficient momentum.

What my definition is saying is that the trader is not looking at the separate components that make up the picture. He is looking at the net of all the information that he has processed - the picture.

If I focus on individual components of the picture, I cannot "feel" what is actually happening in the market. Its not when this line crosses that but what it means when this line crosses that, something totally different.

So in creating setups, I define what I want to see in the picture and that may manifest itself by getting information in a number ways from a number of sources.

COMMENTS: I'll catch up and respond to as many as I can on the week-end. Its been pretty busy this week with Nick.  Just to let everyone know there have been some great suggestions for a new FloBot name.  It's been a nice diversion talking about the pros and cons of each name. Hopefully there will be a decision by the end of next week.

Today's trades are the Euro FX. I have shown entries only as an example of how FloBot logic can be used to enter trades and then let the trader manage them. You will see short trades in an obvious down trend and then sideways chop which FloBot avoided this time. When the down trend resumed, FloBot caught the move probably one bar later than an electroniclocal may have. That's the price for filtering out chop. In autotrading, its all about trade offs. I have not optimised all the rules yet - what to use and when -as we are not yet in that mode and there is still a lot of manual tweaking in what you see now.

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