Very Uneventful Trading Week
July 6, 2006 by Trader Rich
This week has proven to be a pretty uneventful one so far. I've made 2 manual trades, 1 which was barely stopped out and another that I closed only after getting up to date on economic announcements. I opened a short trade on the EUR/JPY yesterday without being aware that the ECB was having an interest rate announcement this morning. I contemplated keeping it open but wanted to remain conservative so I closed it with a 3 pip profit. I went short because I liked the technicals but during these types of announcements, I felt like it would have been a prayer and a pure guess to which direction the pair would go. I've made these types of mistakes before and payed for it so I didn't want to chance it. No harm.
I have had 4 automated trades this week, 1 for Construction Spending, 1 for Factory Orders, 1 for Initial Claims and 1 for ISM services. These trades have profited a total of 5 pips.
Tomorrow is the always wild and crazy Nonfarm Payrolls which I've previously reported is the top market moving indicator with an average pip range of 124 in the first 20 minutes following the release. Read Top Market Moving Indicators
I will certainly be automating a trade for this announcement.
Other than that, the technicals on the daily charts look very bad to me this week. Most are just hanging out in the middle of their channels waiting for something to happen similar to what I'm doing.
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Don’t you autotrade yesterday’s Initial Claim?
I (oh, I mean FXengines), made 24 pips. :laugh: (Yeah, after consecutive losses)
But it does not seem that the movement was due to the news. It happens 2 or 3 minutes after the news and doesn’t seem have a logical explanation about the direction. In manual trade I decide not to get in the market.
Rich & I talked at length about this, and I totally agree with him. I have a demo account, but after using FxEngines for one week, I’ve seen enough. The price spikes that looked so great on paper after-the-fact almost NEVER proved to be profitable in real time.
And despite the willingness of the CEO to get on the phone and deal with the issues head on, it just seems like there’s one excuse after the other as to why the trades never seem to work as they should.
Three different times this week, I not only got stopped out in one direction, but on a clear BULLISH spike, somehow the SHORT signals were activated on the retracement, so I ended up straddling both sides of the market, and losing on all counts. Not good!
In summary, the FxEngines platform is a great concept, but WAY too loose around the edges to make it work during volatile markets. I traded FXEngines today and lost a total of 250 pips on 4 trades, yet in one trade done manually I managed to pick up 58 pips. That tells the story, pretty much!