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.
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):
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.
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.