17/12 – Post-FOMC Trading Session

Last night the Fed hiked interest rates for the first time in a decade. Today was promising to be an exciting trading session.  How did it go for me?

  • Overall good preparation and good focus.
  • Completed 15-minute visualizations at start of morning and afternoon sessions.
  • Listening to squawk throughout the session
  • Minimised distractions
  • Reviewed news/fundamental context
    • FOMC, Oil weakness, today’s news schedule
  • Identified likely leading instruments
    • Oil, dollar pairs, DAX/SPX
  • Anticipated what could happen today
    • Dollar strength to continue, weakness in commodity currencies
  • Created shortlist of instruments that were most likely going to be traded
    • AUDUSD, USDCAD, NZDUSD (because of dollar strength coupled with Oil weakness) – this didn’t look good in the London session but they set up for the afternoon
      • Key skill to master: Knowing when price has turned (e.g. DT’s, RT’s, XO’s, 123, EMA100 violation)
    • Cable, EURUSD, USDJPY (because of post-FOMC dollar strength)
    • DAX (equities rally because of Fed’s confidence in global economy, continued momentum from US equities rally post-FOMC)
    • Oil (oil weakness due to fundamentals)
  • Took breaks when I got tired

Some insights

  • Entering close to EMA100 increases edge
  • Getting very disciplined in applying the Stoch 5/3/3 filter
  • Coupling fundamentals with technicals increases edge
  • How do I judge/guess whether price might continue for a long time

And here’s a slideshow of most today’s trades:

Results (all in R): AUDUSD +0.78, Cable +0.43, DAX +0.16, EURUSD +0.18, NZDUSD +0.26, Oil -0.76, USDJPY -0.16  = Total +0.89R

  • This slideshow requires JavaScript.

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2 Responses to 17/12 – Post-FOMC Trading Session

  1. fxbootstraps says:

    George, Like me I think you have a blog as a type of diary, it is good to see it isn’t just me. Have a look at my WordPress blog and let me know what you think. Dean – http://www.fxbootstraps.com Unlike you I have moved away from Manual trading as I work as an IT consultant and look at trading as passive income at the moment, but a good system is a good system either as a manual system or automated.

    Like

    • Hi FXbootstraps – nice work on your blog! Currently, I have somewhat of a negative bias towards automated trading strategies (see my post on 21st Dec), but it looks like you are making some good headway with it! (Yes, I primarily keep the blog as a diary and easy reference point).

      Liked by 1 person

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