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Good day!
Glad you could join us today. We hope you had a good or at least decent week. If you traded with us or at least read these pages for a while, you know that we are not afraid to trade currencies outside of the so called "majors". Apart from our mechanical trading systems, the "Daily Euro" and "Daily Pound", our "Rainbow" systems trades across broad spectrum of currency crosses. The reason we mention this here is that we just read an interesting article in "Technical Analysis of Stock & Commodities". Article is titled "Currency Cross Adventures" by Grace Chang. The author does a decent job with a brief introduction to the world of "crosses". There is however something we found a little troubling. Author suggests a possibility of trading CAD-JPY as an alternative to trading oil. We find it troubling because if one has an opinion on oil, one should trade oil not some off beat derivative which might or might no correlate. As a matter of fact, one of these days we will devote entire section to exploit a fallacy of this notion, as this is a subject that pops up frequently enough in trading circles. Apart from this, we recommend reading the article, Grace Chang seeming to be an experienced and accomplished trader. Frankly, the magazine is worth reading. Yours truly has been reading it for many years.
Now that I'm done criticizing others let's take a look at our own shortcomings. This week was lukewarm for us, mechanical systems about broke even, while "Rainbow" had decent gains on very few trades. See the results below. We hope this coming week will be better so we keep trading!
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Here are the results we achieved last week:
- Rainbow made us 231 pips in closed trades;
- Daily Pound gained 10 pips;
- Daily Euro lost 12 pips for the week;
Follow the link on the right to view details. |
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Last week we featured a trade in EUR-CAD here. The set up was to SHORT this cross right after the open over the weekend about 1.5250. Turned out our entry price was exactly 1.5250. After some shaky start the trade went our way and on Friday we closed it at 1.5138 for a good gain of 112 pips.
We feel there is much more left here to be exploited. "Rainbow" subscribers will be receiving additional orders for this currency pairs. We might be trading it for a couple months longer. The market will decide for us. Meanwhile, here is the snap shot of this trade.
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What about this coming week? Well, we did see some opportunity in GBP-USD but the market acted faster than we anticipated and that move played itself out. We didn't even get in. There is, however, a good chance to catch a few pips in AUD-USD. We have a BUY order at 0.7850. Now we think that's just reaction in longer term dollar strength so our target here is 0.7900 or only 50 pips at which time we plan to stay on side lines of this cross.
We hope you all have a great trading week!
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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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