JUL 1 – STAM & DISCIPLINE

DISCIPLINE STRATEGY

Just about coming up to 50 completed trades for the discipline exercise. Again completed all assessments of 1H and 5M trends, equity markets and gold.

Entered both limit buy and limit sell orders into the market. Got stopped out on both trades.
Obviously it makes sense to have a lot of losing trades. Assuming the markets are random and the spread is 2.5 pips – price needs to move in my direction by 17.5 pips for me to have a winner, and needs to move only 7.5 pips to move against me to produce a loser.

STAM STRATEGY

Momentum on all the Australian pairs has now switched in favour of the Australian currency. It is the same with the Yen pairs. Momentum is in favour of the Yen pairs. That said, the Australian dollar and Japanese Yen are still the weakest currencies on both the weekly and daily time horizons.

The US dollar is the strongest currency on both time horizons. Euro is 2nd strongest on the Weeklies, CHF is the 2nd strongest on the dailies.

Due to change in momentums, all the setups from last week have disappeared and there are now only 3 pairs in a STAM-type setup: GBPCHF is S1S (but as discussed previously, this is not a pair I want to trade because it is too choppy), EURGBP is S1B (also a pair I don’t want to trade) and finally AUDJPY is still S2S – this pair is now very well into the trend and seems to be flattening out.

Thus in summary, there are no setups to pursue. Is this as simple as it gets? I check through the charts and look for something obvious? And right there is nothing obvious to trade.

I added some charts and SMA’s for the equity indices as well as for gold and oil – only on the CMC platform thus far.

In June I had 4 trades – 3 losers and 1 winner, and had a net result of +0.2R.

 

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