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.
SilverTrader is suggesting a USDJPY buy I have an order in 103.059 in target 103.665, stop 102.885
(DO NOT TAKE THIS TRADE I AM NOT RESPONSIBLE IF YOU DO)
Here’s the Hourly chart with the targets SilverTrader has drawn.
Now SilverTrader Confirms Congestion and you can see the diamond underneath the congestion box with the long tail.
Update US NEWS Rally and then drop back.
Ok – there was a small rally and then drop back, I had already moved my stop inside my open so I stopped out with 0.46$ profit. I have created a new order at 103.144 as I’ve decided i need it to move this sort of distance for the order.
I also have a sell USDCHF on which has just kicked in. I then closed this (with a teeny profit) because I think it’s a fake signal, I think the pair are actually going to move up due to FOMC – the FOMC thing is making the markets behave strangely. Holding my buy USDJPY but I don’t expect to see it go.
Update All Trades Closed before FOMC USDJPY though is showing BEARISH signals!
Could the Markets be hinting at what is to come in 30 minutes?