Welcome back everyone!
Seems like summer is over in these parts; the dreaded rains have arrived! Around here it means it will rain for next 9 months! The rains brought some misery to the markets also. It appears to us the ranges in majors have been tightening, the intraday moves have been not very large, triggering lots of trades but taking us nowhere. That seems to be especially true of EUR-USD, USD-CHF and USD-JPY. Some other currencies, notables being GBP-USD and especially NZD-USD had very healthy moves and wide ranges.
Current market situations in regards to EUR-USD remind us of conditions from earlier this year. Those conditions lead to change in market behavior favoring our featured systems.
What does it mean? Well, to put it simply and to the point, our analysis indicate that our Systems are approaching the end of their loosing streak. Now, we don't now if that is going to happen tomorrow or in a week, but we believe there is going to a turn around in performance results soon.
That is the problem with systematic trading. In to order to realize potential of a given system, all the trades must be taken as they come. There can not be any selectivity. That is the main difference between systematic and discretionary trading. Discretionary trader can always take a brake, walk away for a while.
Systematic or mechanical trading however requires that all trades are executed. Otherwise the total results will be effected leading to a divergence from the system itself.
So, here is what we achieved last week;
System 1 lost 120 pips. Ouch! Follow this link to view results.
System 2 lost 97 pips. Go here to view the details. |
Discretionary trades.
First of all we will take a look at USD-JPY trade. We had a standing order to buy at 117.52. Our fill was 117.53. Original outlook was to target a price of 118.50. However, by the end of the week it was decided to take profit in the neighborhood of 118.00. Our exit was 118.03 for 50 pips profit. Turned out we did it just in time before the market sold out right before weekend. We will be reentering this market LONG at first opportunity. Her is the chart. |
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| 50 pips profit taken. |
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Following charts show USD-CAD and EUR-CAD. Both of these positions show small profit. As stated before these trades are intended for very long term. That is turning out to be a very good idea as there is very little movement. |
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| Small profit so far. |
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| Showing small profit. |
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Next week's trade.
Here is a situation we featured 3 weeks ago, I think. Currency pair is EUR-AUD. We have a BUY order at 1.6975 with a target of 1.7200. Previously conditions have not been met to initialize the trade. We think that now see a good chance to both execute and close profitably. |
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| Target 1.7200 |
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Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com . |
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