Well – you know that losing trade from last week NZDUSD short. Well…it has become a winner!
STRobot entered the trade on the 26th at 5:15 in the morning, the pair then spent 7 days bouncing back up and down to R1 at 0.84073…however yesterday a lovely white dot appeared above a candle and it broke through S1 at 0.83102 it bounced back to it this morning but looks like it will continue in a bearish journey. The trade is safe so I can’t lose it any longer 🙂
You can see in this example if you’ve been following my posts that daily trading is better. Why? Because you are not trading with noise. If you trade daily you are much more likely to succeed EVEN IF YOU HAVE A BAD ENTRY! Because your overall direction of trade is correct. I mean, who would BUY NZDUSD? It is in a strong solid down trend.
If it reverses now my stop is inside my entry so I will make a small profit – however I do expect it to continue.
I do not look at faster time frames. There is just no point – firstly my entries are all managed by STrobot anyway – so I don’t do any trading myself Per-se. What you see here are the trades I see the robot doing and I am just commentating on them.
But I do manage my trades. If we are approaching the close of trading on a friday or some serious news I will prefer to go flat (have no trades on). However because I’m trading daily it doesn’t actually matter THAT much because my overall direction is right. There is very little/no news that will change a currency pairs direction. Sentiment does that. Even NFP I’ve watched push a pair 50 pips in the opposite direction to the trend and promptly return to fair price a few hours later. As if it was not important.
The things that actually tend to slam dunk a currency pair are things like Quantative Easing. I remember years ago when the UK decided on QE it was mid a lot of good news, sterling dropped like a lead balloon, I remember talking with my brokers and they said the trading floor was just silent. No one expected it. In that case it can take days to return to fair value. If you print lots of money you make the currency worth less. This is all part of supply and demand and works in every sphere of business.
Not much news today but some important CAD news. I’m long CADJPY and there is room for a nice push up.
To find out more about my trading system please go to http://www.strobot.co.uk