15/12: Russian Ruble currency drops 10% in one day

The Russian Ruble continued its downward slide yesterday, opening at 58.10 (meaning US$1 equates to 58.1 rubles) and closing the day at 65.80 – meaning the currency lost more than 10% of its value in a single day.  If you feel like having a go at trading this instruments, you can do so with CMC markets – note the spread, recently as low as 4 points, is now at 30 points (trading 65.71-66.01 right now). As I said earlier, FXCM has decided that this instrument is too volatile for their liking and no longer offer a market in it (for now).  Following this massive drop, the Russian central bank decided to promptly raise its interest rate from 10.5% to 17%.  This should strengthen the currency as a country’s interest rate is the main driver of its currency.  However it looks like the Russian central bank is truly up against the wall.  Although the currency moved from 65.80 to a low of 58.20 overnight, it is now (at 10.30am GMT) trading back at 66.

If you want to read more on the Ruble situation then check out these posts on Paul Wallace’s blog – Ruble 1 and Ruble 2.

My personal update

Yesterday I continued testing DAX (am in the February-March 2013 period).  I also met up with a fellow trader in the afternoon who showed me his custom-developed platform.  I may have more updates on this in the next few days.

I also took two paper trades yesterday – the first on Cable – I had left the office by the time it was entered, but I had clearly defined entry level, stop as well as two target levels, T1 and T2.  Here’s how it turned out (rather nicely):

Cable Dec15

To be honest, had I been at my desk the whole time, would I really have not adjusted the trade at all?  If I had not then the trade would have hit T1 and T2, a very nice result.  But given that it went sideways for so long, would I have lost faith?

The second trade was on Oil.  I got entered whilst still at the office.  I had set T1 but I had not selected a T2, so I don’t know where I would have exited the trade.

Oil Dec15

Hmmm, these real-time paper trades over the last week and a half have been all right.  I have been very selective and have not taken many trades, but they seem to produce reasonable results.  I am trying to take only such setups during my testing exercise (in ForexTester2) but it seems much more difficult in testing.  I have only taken 5-6 trades over a 2-month period in the DAX.  I’ll see how it progresses.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.