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GBPUSD correction … ready for a short?

GBPUSD has been correction and strobot set up a short yesterday at about 11pm. We are sitting flat although showing signs of a move bearish, between the two lines the Robot will not trade because it indicates the possibility of a reversal  from both the daily and hourly short term trends.

Although GBP had some good’ish results we really didn’t see a huge Rally into the no trade zone so I would imagine that any time soon it could be continuing below.

http://www.strobot.co.uk

The problem of spread and flat markets.

It would be so nice, wouldn’t it if we could start from 0.

New traders often don’t realise that every trade they place comes with  a price, the spread, this means you will NEVER enter a trade in profit, for example, if your spread is 2 pips, it means that you have to do 2 pips profit BEFORE you get to take any money.

Thus, if you have 10 trades, you need to make 20 pips before those 10 trades are profitable. (note that spread differs between currency pairs, GBP is normally the most expensive).

To make things MORE difficult, the spread changes based on the movement in the market. Only by a small amount but it is worth noting that it DOES change.

Spread and Emotions

The problem with spread, is that it affects your emotions when trading. Always starting trades negative, if you don’t understand what spread is can be quite off-putting. When in fact it’s just part of trading. Part of the blessings of trading with a robot is that the robot has no emotions. So spread, or starting in a loss it doesn’t care about.

Does it matter?

When you understand it, not really, but brokers with terrible spread will make it harder to make profit if you are trying to take smaller pips, you want 10 pips, but you have to get 12.

When STRobot opens a basket of trades over a few hours, they can hang around the spread, today is an example, the markets are slow, we end up with 10 trades on just sitting still, hovering in a range of 10 pips. We know WHAT it should be doing but it just isn’t.

All you can do is wait for some volatility or participation in the market, when there is no news, this fuels this kind of market, added to that is if there is important news in the next 24 hours. The markets will go into the doldrums while they wait.

Happy trading!

http://www.strobot.co.uk

Monday trading… having a rest after a busy Sunday night

Good morning traders.

The markets are slow at the moment after a busy Sunday night. My USGFX Strobot managed to pull 383 pips so far so that’s not bad but we do seem to have settled into a slow waltz, this is probably as the markets are waiting for ISM Manufacturing @3pm GMT

STRobot’s method of basket trading has proved very effective.

JPY Surprise the market with QE, STROBOT takes 2 baskets last night and one this morning.

Wow – amazing moves in the market with Japanese Quantitate Easing.

STRobot took 3 baskets at 150 pips each overnight. Our baskets are at $150USD so basically when we reach 150 pips in all the trades we go flat closing both winning and losing trades. This can take 2 days or an hour depending on markets.

This means we lock in risk and reward.

So I’m in the 4th basket now in 24 hours. Amazing.

Video later I think!

http://www.strobot.co.uk

(I will confess I wasn’t paying attention with Japanese QE, I was out at some band practice).

Managing a Robot FOMC example.

Robots need managing. The amount of traders that think they can set it and forget it. The key here is profit taking.

For example, last night was FOMC. FOMC can cause major ructions in the market, it can cause whipsaws as the market responds to the news and speeches from the USA.

A sensible plan before both FOMC and NON FARM PAYROLLS is to go flat. The other thing you can do to automatically profit take if you have your STROBOT set up is to set “close all trades when profit reaches”.

Depending on your lot size – this will mean that when the basket of trades you have reaches a certain level of profit, the robot will automatically go flat. Locking in the trades. That means closing off all winning and losing trades.

http://www.strobot.co.uk

 

Important Update to STRobot

If you are a STRobot user and not in our Skype Group please contact me using the form on this website as soon as possible for details of an exciting update.

This system now uses

4 Moving Averages
Hecken Ashi
Currency Strength and Weakness
Support and Resistance
…to work out its trades.You can trade manually as well as letting the robot do all the work for you!For more details http://www.strobot.co.uk

Trading update

Live Trades
Total Pips:217.00  Winning:233.50  Losing:16.50
Currency Direction Risk Target Currently
CADJPY.mf BUY -1.20 94.80 27.10
EURCAD.mf SELL 80.00 101.00 -9.60
EURGBP.mf SELL 79.90 107.30 -2.30
GBPJPY.mf BUY -1.40 105.30 20.50
NZDCAD.mf SELL -1.60 119.80 46.30
NZDUSD.mf SELL -96.30 270.40 139.60
NZDUSD.mf SELL 80.00 140.00 -0.80
GBPUSD.mf SELL 80.00 135.70 -3.80

So a couple of stop outs but compared to the gains it’s quite small , my favourite at the moment is the NZDUSD at 139 pips profit and still going – in fact strobot placed another trade on NZDUSD that TP’d yesterday for about 80 pips, we have a new entry on NZDUSD short.

In the risk column if it has a negative number that means that if it stops out it will stop out that amount of pips in profit. :-) result.

I am tempted to do some profit taking in front of the US news @ 13:30 however I have so many safe trades I’ll probably just hold.

http://www.strobot.co.uk

First 24 hours of the updated STROBOT

Live Trades

All numbers are PIPS.

 Total Pips:222.40  Winning:271.60  Losing:49.20
Currency Direction Risk Target Currently
 EURCAD.mf SELL -50.10 148.70 75.00
 EURCAD.mf SELL 80.00 100.40 6.30
 NZDUSD.mf SELL -49.50 270.40 82.10
 NZDUSD.mf SELL -35.20 93.00 67.60
 NZDCAD.mf SELL -5.30 171.60 39.80
 AUDNZD.mf SELL 80.00 101.30 -49.20
 EURGBP.mf SELL 79.90 107.30 0.80

Need I say more! Using Heiken Ashi smoothed has made a huge difference to the trading so far.

I wil be providing updates as time goes on.

Strobot basically enters trades, manages stops, targets and much more. Completely automatically.

http://www.strobot.co.uk

STRobot uses Heiken Ashi to enter.

Yes yes, I know there’s been no posts for a few days. My apogees I’ve been hellishly busy. STRobot has had a major update, to help him get better entries he uses Heiken Ashi. This means that he looks to trade in to big open areas between support and resistance but with Heiken Ashi driving the entry to the trade, the reason being that he can target to get safe with the trade on 30 pips (move the stop inside entry).

Here is a EURCAD short live trade in progress with a nice big target!

As the Heiken Ashi is on 15 minutes you can’t see it on this chart I’m going to look at a way of drawing the 15 minute Heiken Ashi in a separate window somewhere on the chart.

http://www.strobot.co.uk

That vote……

GBP will drop if there is a YES vote at 6am tomorrow morning, my advice set up orders but put them far enough away not to hit a whipsaw. In fact, I have mine in place.

When the market is going to move far in the other direction based on news, they normally take the currency pair in the opposite direction PRIOR to the news.

All the best everyone – also I have a new broker USG, they are based in Australia and also have a debit card Mastercard for access to your funds.

Click here to visit them.