6/8: Initial post-holiday trades -> Entries improving on DAX/Cable/EURUSD

Since I am waiting for NFP to pass me by, and am not going to trade before that, I thought I pull together the charts for the first lot of trades this week.  The entries seemed ok/good.  I am taking into account the points I have identified in my post on Monday.  The position management can obviously improve, but the entries were decent.

Net results: DAX -0.56R (1-3), EURUSD -0.51R (0-2), Cable +0.84R (1-0) = -0.23R (2-5)

504 cable aug6

503 505 eurusd aug6

501-506 dax aug6

500 dax aug5


6/8 – Looking for instruments to trade in August

I am trying to figure out what instruments to focus on right now for my trading given that it’s August and that many instruments have started to consolidate, and, finally, that there are some instruments that are continuing to trend.  Recall the instruments I was focusing on prior to my break (at the end of June) were DAX, Cable, EURUSD, EURJPY, USDJPY and AUDUSD.

I have taken trades on DAX yesterday and today, losing 1.2R across the trades. Out of the above group, DAX and AUDUSD are the only ones that still have some direction.  However the others I would need to look a lot harder to “find” setups, which I would think is not a good way to trade.  Instead, I will have a look at the trending instruments to see whether they are better suited for setups right now.

Today I looked at the distinct strength/weakness camps.  My gut feel is that setups are more likely with instruments trending on the higher timeframes.  This is gut feel only.

Things to consider with the NZD, CAD and AUD crosses is the associated transactions – naturally these are likely to be higher than transaction costs associated with major pairs such as EURUSD or Cable. However, thanks to my negotiating down the commission component of the transaction costs, all of the 9 instruments have a ratio of less than 2% (except for NZDUSD, at 2.04%) even with the decreased volatility in the instruments.  So not red flags at the outset – however this is something to definitely keep an eye on.

Ad Hoc Point – Super Thursday

Today is “Super Thursday” where the BOE releases its rate decision, minutes (including the voting results for the rate decision), and its quarterly inflation report.  This is happening for the first time ever.  Traditionally, each one of these items has been released seperately and each time triggers volatility in the GBP crosses.  Now three volatility-triggers have been shuffed into one.  What implications does this have for the retail trader and the professional trader?  Out of interest, what would happen to the markets if all economic releases were released together once a month, instead of being spread throughout the calendar month?


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