Long day at the office today – just over 12 hours now.
Today was FOMC day, so as expected, the markets were fairly quiet ahead of the 7pm announcement. The Russian Ruble also stabilised somewhat after the Russian Central bank said it was prepared to sell $7 billion worth of US dollars on the open market in order to protect its currency. Apparently they also have some other tools up their sleeve. I calculated that $7bn equates to approx 40,000 standard size futures contracts. Oil made some big moves following the Weekly Inventories data at 3.30pm – in fact it one time it ranged $1.50 (150 pips) in a single 1 minute candle.
Mr France and I had another long chat in the office discussing his AUDUSD trades from the previous evening. Again the conversation focused on risk management, position sizing, importance of transaction costs as well as some practical aspects regarding the daily rollover process. It’s amazing how much there is to know when trading FX.
I spent three hours trading on the custom-develop platform scalping the March 2015 futures contract for the Emini. I had the $SPX chart (the 1M timeframe) and the skype session with the Australian-based platform designer open at the same time. It was very intense.
Real-time paper trade on Oil
Only one paper trade setup today. Here’s the chart for it – it’s still open at this time. The trade was entered and managed in real time – the price got very close to stopping out the 2nd portion of the trade at the adjusted stop level – but it did actually seem to have sufficient buffer. So this looks like a great trade.
I got some testing on DAX – getting to the end of March 2013 – so that’s three months worth of testing. Though I have only taken 9 trades thus far!!
Good find -> Bloomberg article on geo-political risks
Anyways, Great Bloomberg article giving a list of geo-political issues that could explode in 2015 – happy reading!
(I actually found this article via www.forexfactory.com – this site is used by many retail traders for checking the news announcement schedule each day – you can also look back for several years for past announcements – which is very helpful when backtesting.)
Developing events can have a drastic impact on financial markets – currencies, commodities and indices/equities – when trading, it’s good to be aware of things that are going on – the higher the timeframe used by the traders the less the fundamentals are likely to influence trading decisions – but one still needs to be aware of them – just as many times in 2014 issues such as Ukraine, Israel, Ebola and Islamic State (just to name a few) regularly impacted on the markets.