That’s cool mate, it seems like you’re the only one carrying this thread these days. I am thinking I might get involved as well and start posting my analysis/bias. I have a small broker account that was only created to obtain access to mt4. Thinking I might run this strategy on that account and monitor the results.
Oh are you trading live or still on demo?
Great! I feel as if I am monopolizing the thread! If you can make your daily post, it would be great! That will relief me from my guilt hehehe.
Live, using mini account that accepts 0.01 lots 
(or 1 cent per pip)
I’m still here, reading and learning from your great posts. Thanks
Still loosing more than I make on my demo though. Like all newbies I tend to be impatient, so I need to apply more discipline.
Kiwiman
Hi
Ditto as for Kiwiman
Still keen to follow and experiment
I’ve had some HUGE wins and HUGE losses. I’m a new too, so I’m slowly learning that I need to wait…wait. wait. This is a daily read. So keep it up!
Hi! This are my thoughts for today!
Today I got a hard hit on floating profit, it is now half of yesterday, mainly because the big move on the Yen pairs. Also, 2 trades were stopped out for a loss. Let see what is my analysis saying about all the pairs.
[ul]
[li]NZDJPY bias long. Today it made a big drop; it is still on profit, but I’m going to move my stop 10 pips below to 82.889[/li][li]AUDJPY bias long, same as NZDJPY. Moving my stop 10 pips below.[/li][li]USDJPY bias long, same as NZDJPY. Moving my stop 10 pips below.[/li][li]AUDUSD bias undefined. It seems to be making a good tweezer top, but it could be caused by the drop on the yen, so I need a confirmation to decide my bias.[/li][li]CADJPY,GBPJPY bias long, same as NZDJPY. Moving my stop 10 pips below.[/li][li]NZDCAD bias long, in a correction. It was stopped out for a -40 pip loss. I’m looking for a re-entry when it gives the signal.[/li][li]AUDCAD bias short. Well, the double top signal resulted to be good one! huge drop today on the pair. Nothing to do on it[/li][li]AUDCHF bias short. My entry point is ready! the pair closed below my entry so on Sunday’s open the trade will be placed by my script.[/li][li]GBPCAD bias long. It made two days a tweezer, and today is a pinbar over a resistance, so I’m moving my stop[/li][li]NZDUSD bias long, but it made also a two days tweezer, so I’m moving my stop[/li][li]EURCAD bias long. Anything to do on it[/li][li]NZDCHF bias long but making a double top and it seems like to starting a correction. I’m going to move my stop.[/li][li]GBPNZD bias changed to mild long. I’m going to buy it if it closes above 1.8372. It was stopped out for -117 pips. The trade was using the minimum lot (1 cent per pip) so it was a very small hit.[/li][li]GBPAUD bias long, it resulted y very nice entry! it is on a previous resistance, but no signals to close the trade. The fact that I’m seeing bias long on both GBPNZD and GBPAUD make me think they are right because of correlation, but only time will tell.[/li][li]CADCHF bias short. Last candle is a hanging man on a resistance very near my upper trend line. I’m going to sel it on close below 0.9212[/li][li]GBPCHF bias long. The trade is working very well, but last candle is a doji on a upper trend line, so I’m going to move my stop below that doji, just to lock profits because that doji on that place makes me think the pair can reverse to the mean or to the low of my channel. That would lock about +250 pips[/li][li]EURJPY bias long, still waiting for my entry.[/li][li]CHFJPY bias long, still waiting for my entry.[/li][li]EURAUD bias long, still waiting for my entry. It seems to be doing a new higher low, that’s good signal for a buy![/li][li]EURGBP starting the short run. The last candle is an small one, a balance between bulls and bears. But the close of the trade is not on a support (for me at least) so I’m letting them untouched.[/li][li]USDCAD bias long. It reached the 61.8 % retracement, so it is near to change my mind about it if it closes below the 78.6. My entry point is at 1.02[/li][li]GBPUSD bias long, the entry seems to be good, let’s wait some time to see what happens on it.[/li][li]AUDNZD bias short, but it has made two similar signals one after the other, so I’m starting to doubt it can continue downtrend for now. I’m moving my stop above last candle high. That will lock +300 pips.[/li][li]EURNZD bias long. It made a nice tweezer bottom just on my trendline. I continue with it for a buy at 1.5375 (if it closes above that price)[/li][li]USDCHF bias short. It seems like very good entry, almost on the top, but hey! only one day since my entry, so time will tell.[/li][li]EURUSD bias long. It seems to just made a higher low, so I’m still with my entry at 1.306.[/li][/ul]
Hi! Today I had a strong headache and was unable to analyze the market and post my results sooner, but here I’m!
[ul]
[li]NZDJPY,AUDJPY,USDJPY,CADJPY bias long, they didn’t touch my stop, and it is recovering it’s value![/li][li]AUDUSD bias is becoming more attractive for a short. I think current candle close will define if I short it or not.[/li][li]GBPJPY bias long, it touched my stop and closed with a +174.1 pip profit. I’m going to wait until tomorrow to decide if I place a new buy or wait for more signals.[/li][li]NZDCAD bias long, but currently in consolidation. Today’s candle was a big green one, and I think it is good price to entry, so I placed a buy order.[/li][li]GBPCAD bias long, it was closed by the stop for only +4.1 pip. Current PA shows a reversal, so I’m going to wait until a new buy signal to enter long.[/li][li]NZDUSD bias long. The prace made a nice green candle that looks promising. I expect a retracement today, maybe 38.2 % of yesterday’s candle. If that’s true, this is a very good trade with a nice potential profit![/li][li]EURCAD bias long. It is still alive, the support is holding. Waiting to see what happens. I’m moving my entry point to 1.3342, that I consider the nearest resistance to break.[/li][li]GBPNZD bias long, it made a new higher low. I’m going to buy it if it makes a new higher high.[/li][li]GBPAUD bias long. Not making any change on it.[/li][li]GBPCHF bias long. It made a retracement on the upper line of my trend channel. It was closed by the stop for a +257.9 pip profit[/li][li]EURJPY bias long. It made a new higher low (or at least it seems to be that) If today’s close is positive, I will buy it.[/li][li]CHFJPY same as EURJPY (not surprise! they have about > 95 % correlation)[/li][li]EURAUD bias long. Same waiting as previous post.[/li][li]EURGBP bias short. It is making a small retracement, but the candle patter is like a morning star on a support. I expect some support there, but to be sure, I moved my stop to a nearer place just to reduce the risk.[/li][li]USDCAD bias mild long. The retracement went to 78.6 % I’m not going to move my stop because my bias is still long and my current position is very small. Nevertheless I’m going to wait for a retracement or a stop hit to decide what to do. If i see a good support and nice reaction on it, I will place a buy to complete the current lot size for my equity.[/li][li]GBPUSD bias long. It is doing good job, and because some fundamental issues I will describe below, I think it is a good buy.[/li][li]AUDNZD bias short. The stop has not hit, and it closed low. I have a nice profit locked on that pair![/li][li]EURNZD bias long. Still waiting for my entry[/li][li]USDCHF bias short. It is doing very well![/li][li]EURUSD bias long. I opened a buy there today.[/li][/ul]
Well, there is some fundamental issues on USD and the Yen. BoJ is going to cause an artificial inflation and that is going to make the yen weak across the board. On the other hand USD economy is not giving strong enough signals to make the USD continue being safe heaven for now, thus I think the USD will be weaker in the short term, and that is good news for the xxxUSD pairs that are in longs (and correlated like xxxJPY).
Also, I think this USD weakness is good for gold (XAUUSD) buys, so I’m looking to add it to my portfolio
The addition of XAUUSD need to be with percent risk because with the lotsize/equity calculation, the risk is too high and the leverage is also too high. I’m risking a max 2 % per trade on gold.
I’ll post mine tonight mate, hope u feel better
This is my analysis for today!
[ul]
[li]NZDJPY, AUDJPY, CADJPY Bias long, still holding[/li][li]USDJPY bias long. The price is about to touch my lower trend line, pretty near my entry price. If i see it not respecting my trend line I’m going to move my stop.[/li][li]AUDUSD bias neutral. Last candle could be very well a bull signal, but the long wicks make me doubt, so I’m not doing anything until I see a clearer signal.[/li][li]GBPJPY bias long, but with current market structure I think I’m going to wait a good signal to buy it.[/li][li]AUDCAD bias short, current bar is a bearish engulfing so I expect a continuation to the down side.[/li][li]AUDCHF bias short, but if current bar fails to make a new lower low, I’m going to move my stop.[/li][li]GBPCAD bias long, waiting for my signal[/li][li]NZDUSD bias long, the price closed without crossing the resistance, but right now it is struggling on that point. Will see tomorrow.[/li][li]EURCAD bias long. It seems to be in a consolidation, small bodies, long wicks, without closing outside the range of the first candle, I will need a close above previous resistance to buy it. My stop closed it today for a +114.9 pip profit.[/li][li]NZDCHF bias long, in a retracement. It was stopped out for a -59.7 pip loss[/li][li]GBPAUD bias long, it made what seems to be a bullish continuation pattern on a support level.[/li][li]CADCHF bias short. It failed to close below my entry point, so I’m still waiting for it[/li][li]EURGBP bias short. the pattern managed to be a morning star, but it didn’t hit my stop, so I’m waiting for it to hit it, or to continue my way.[/li][li]USDCAD bias shift to short. My trade was stopped out for -136 pip loss. I placed a sell on it today. My current drawn channel is up trend, but the price made a lower high followed by a lower low and the retracement exceeded the 61.8 %, so I expect it to retrace at least to the 78.6 % or maybe change trend. After all, I 'm looking 4 consecutive big red candles, enough to signal a change in trend. To be safe, because this could be very well a simple correction on the up trend, I’m going to move my stop at the first signal of returning to up trend.[/li][li]GBPUSD bias long. Moving my way slowly but within the expected range.[/li][li]AUDNZD bias short. Price is currently in a consolidation, I’m moving my stop a little nearer because current support feels pretty strong and I see some green candles that make me doubt about the pair and it’s down momentum.[/li][li]EURNZD bias long. The pair was bought today, pretty near the trend line. If price indeed continues up, this is a great eantry, pretty near the bottom. I placed this trade because I saw a LH-LL-LH-LL-HH-HL structure, and I already looked for this type of patterns lot of times to become a trend reversal. Also, the previous candles shown strong support on my trend line.[/li][li]USDCHF bias short. Is working very well, not giving hints about reversing anytime soon. Nearest support is about 40 pip below current price, so maybe this pair can extend it’s downtrend at least 40 pips. But because my long term bias is short, I’m going to leave it run for a while until I see a good reason to move my stop.[/li][li]EURUSD bias long, of course, it is inverted correlated to USDCHF 
it is working nice also, but it is currently on a resistance. Tomorrow. Some news are expected for tomorrow from US and Europe, both can move the price on this pair and I’m looking the market is a little quiet. If the euro closes above 1.3185 tomorrow I think it will continue to next resistance, but only price will tell.[/li][li]GOLD bias undefined. It seems like a short, but I need to see a bounce on a resistance or a cross above it to know that to do.[/li][/ul]
After a week of losses, I’ve been able to turn this ship around. It’s pretty cool. I think my losses from last week came from me exiting a bad bais or setting a SL.
I’m a total newb and have been at this for only three months. I’ve never had so many pips in my life!
I really like trading on the longer time frame, it’s much more fun.
Hi! This is my analysis for today!
The pip profit is above yesterday’s. Let see what the market is telling me, hope good news!
[ul]
[li]NZDJPY bias long. It is telling me that it maybe get a correction. I think I’m going to move my stop 10 pips below previous day low. That is a small risk of 40 pips.[/li][li]AUDJPY bias long. It is retracing, I’m going to move my stop below previous short term support. It is by far the worst of my current trades both in pips and cash, so if it drops a little more, I will close it with the stop. The stop is risking only 33 pips more.[/li][li]USDJPY bias long. It is showing support, 3 doji like candles without breaking the support, and also just on my uptrend channel. That is enough for me to leave it untouched.[/li][li]AUDUSD bias … well, don’t know what to think about it. I think I’m going to wait until a more estable condition on it, because yesterday’s candle was too long and current candle is already very long, and very near my support, so I think it is too risky for me to short it. Also the channel, that I use to define my bias on most pairs, is almost flat. I’m not going to trade it for a while.[/li][li]CADJPY bias long. The support is holding. USD and CAD are somewhat correlated, so I think it is reasonable that both are showing similar signals for me. I’m not going to move anything on this pair for the moment.[/li][li]NZDCAD bias long. I see the support holding, but to be safe I’m moving my stop to previous support, that is giving me a total risk of 50 pips on the trade.[/li][li]AUDCAD bias short. It is working wonderful. Thanks to weaker data from AUD today all the bad moves on AUDJPY is offseted by this pair. Not looking anything to move my stop.[/li][li]AUDCHF bias short, same as AUDCAD.[/li][li]GBPCAD bias long. I see a bullish engulfing pattern. That very well could transform to a 3 outside up pattern if current candle closes above and green, so I’m placing a order on close above the resistance level at 1.5710.[/li][li]NZDUSD bias long, but current price action shows that there is a correction or maybe a trend change. I’m moving my stop 10 pips below previous low, that gives a total risk of less than 10 pips to the trade.[/li][li]NZDCHF bias long, just above my uptrend lower line channel, I think a buy is very near on the pair, but I want to see a nice candlestick on it because is some correlation risk with NZDUSD that has also risk of end of the uptrend because the patttern and also there is the correlation between NZD and AUD and AUD is a litttle weak.[/li][li]GBPNZD bias long. I just opened my trade on it, will see if what I think about a trend reversal on it and the green candles I’m looking works. There is also a risk that this is only a false move from the current consolidation (short term) channel.[/li][li]GBPAUD bias long. It is working nicer than GBPNZD because the aussie is weaker than the kiwi. Nevertheless, I think both trades are going to work well because I think the pound and the cable are fundamentally weaker than the aussie and kiwi.[/li][li]CADCHF bias short. I just sold it. The two red candles before it are very nice looking, well, yesterday’s is not too nice, but it’s body is big enough to show that bears are under control for now.[/li][li]GBPCHF bias long. The price is currently on the 38.2 % retracement, and on a previous resistance. Also it is on my middle line of the uptrend channel and previous candle is an inverted hammer, that could transform to a morning star or something like that. I’m going to place a buy if current candle closes above previous day’s high, at 1.45.[/li][li]EURAUD bias long. My buy was just triggered and it is now on profit. There is some risk on this trade because the price has yet to close above 1.2908, that is the previous trend line that has broken. It could bounce there and reverse down and transform in a downtrend, but looking at current longer term price action, I see HH and HL, inside a big up channel. That gives me a lot of confidence on the trade![/li][li]EURGBP bias short. It is holding below the previous high and also below my stop. I think current PA is good enough for a short.[/li][li]USDCAD bias short. I’m little scare on this pair. Previous day is a ugly green candle showing balance. Balance is not what I want to see hehehe, I want to see lot of bears eating bulls, so I’m adjusting my stop to previous resistance, just in case this candle transforms to a bullish channel bounce.[/li][li]GBPUSD bias long, trade is working as expected. Currently bouncing on my up channel upper line.[/li][li]AUDNZD bias short. The support is about to be broken. Bad results on the aussie is making it weaker than the kiwi (as I said before) and current candle seems really bearish! Nothing to change on the pair for the moment.[/li][li]EURNZD bias long. The price is currently on a resistance. Let’s see if it makes it and becomes a good long.[/li][li]USDCHF bias short. It is doing very well, but now is on a support. I expect some problems here. If I see a candle pattern that shows a reversal, I’m going to move my stop.[/li][li]EURUSD bias long. Previous day was a pinbar, on a resistance. I’m going to lock some profit on it because it could very well reverse and let me out without anything. I’m locking about 45 pips on it.[/li][li]GOLD bias short. Well, it made a evening star pattern, on a resistance level, that is also the 61.8 % retracement, I see enough reasons to place a order on close below 1448 with 2 % risk. This is the first time I trade gold with PA; previously I traded it with buy & hold, so this is going to be an experiment for me! hope it results in a shiny and golden experience![/li][/ul]
Current floating profit is greater than yesterday, both in pips and money, and that makes me happy hehehe, and makes me thank MG99 for this great thread.
I’m going to continue trading this way for 2-3 months, but someone told me that one should double their account in 20-30 winning trades, and I think that this technique with it’s simple approach and with the easy MM is going to give trades that wins 5 % or more each one. Also, there is enough fun on it for me, and also too little time to invest so it is a prefect balance for full time working people like me.
Today’s analysis!! lets see what I’m looking today.
Analysis Started at 16:06—
[ul]
[li]NZDJPY bias long. Price didn’t touched my stop, that’s great from now, the price is in better place than yesterday, it made a tweezer bottom halting the down move just at the same price, strong support, isn’t it? well, we will see soon![/li][li]AUDJPY bias long. My stop is holding! the candle pattern is a very nice spinner that shows strong support, but I can’t say victory yet.[/li][li]USDJPY bias long. Previous day finished green, and made the morning star pattern. It is a cute signal for me, because is turning my trade on the pair to the green side![/li][li]CADJPY bias long, seems to be working my way, the same as other yen pairs. Support is holding.[/li][li]GBPJPY bias long, this is nice, if today’s close is above 152.6 I will buy tomorrow :)[/li][li]NZDCAD bias long. Current price pattern is a nice pinbar on a support. What say, is a VERY nice pinbar well defined, green candle. That invites me to not doing anything yet.[/li][li]AUDCAD bias short, but previous day sends a warning signal. Very well defined and very long lower wick pinbar that penetrated 2 supports but was rejected. I’m going to move my stop right now! 10 pips above previous day high at 1.0375 locking +140 pips![/li][li]AUDCHF bias short, but previous day shown a yikes candle (like pinbar but with big real body). Normally I would wait for another candle to move my stop here, because the current candle is not on a support for me, but because correlation with other AUD pairs, is better to lock profits here also. +64 pips locked.[/li][li]GBPCAD bias long. Waiting for the entry.[/li][li]NZDUSD bias long. It was stopped out for a -6.8 pip loss, previous day made a nice pinbar on a support. This is difficult for me right now. The market made a LH and that could be a simple correction, but also a trend reversal. Well, I think I should wait until today’s close to see what happens. Maybe the correlation between various kiwi pairs will help me, let’s continue.[/li][li]NZDCHF bias long. Market made a nice pattern, don’t remember how it is called, but could be a tweezer. It signals a strong reversal, so I’m buying right now on the pair.[/li][li]GBPNZD bias long. Previous candle doesn’t seems appealing, and I’m tempted to move my stop. I think I’m going to move it. I should note that my entry could be better at 1.8372 that was a previous high and highest of the current consolidation range.[/li][li]GBPAUD bias long, but just made a pinbar on a support. I’m going to move my stop 10 pips below. That is locking +220 pips.[/li][li]CADCHF bias short, made a big green candle but the candle is a bearish one for me, so I’m not moving anything.[/li][li]GBPCHF bias long, just placed my buy.[/li][li]EURAUD bias long, I’m holding without any move here.[/li][li]EURGBP bias short. It managed to made the evening star pattern (or 3 inside down), closed below previous support and that’s great, i think it is still a valid short.[/li][li]USDCAD bias short. It made a lower low and is now reversing. I have my stop just above a resistance because I “fear” that my short entry is wrong and that my bias should be long. This is because the pair is very near to a support that couldn’t be broken. I think tomorrow I will know for sure if this is a long or a short.[/li][li]GBPUSD bias long. The trade is working as expected, nothing to change.[/li][li]AUDNZD bias long. The pair managed to made a new LL and closed low, good news for my short that continues growing.[/li][li]EURNZD bias long. It seems like a lower TF channel breakout followed by a retracement to the breakout point. Will see in a couple days. Not moving anything.[/li][li]USDCHF bias short. As stated yesterday, I’m moving my stop because I see a reversal pattern. This locks about +73 pips.[/li][li]EURUSD bias long. It was stopped out for a +47.8 pip profit. Waiting for a reversal pattern to decide to enter it again or not.[/li][li]EURCAD bias long It made a nice yikes candle near a support. I’m going to move my entry point to a nearer place on close.[/li][li]GOLD bias short. waiting for it to make its move.[/li][/ul]
— end analysis at 16:54
Now, based on correlation to decide the future of the kiwi.
This pairs are long: NZDJPY, NZDCAD, NZDCHF, EURNZD
This others are short: GBPNZD with doubt, AUDNZD
The USD pairs are long also, showing weak USD, I think I should place a buy on close above previous candle high because the kiwi is showing strength, so that is the change I’m going to do.
By the way, today’s lot size calculation is 30 % greater than what it was when I started trading this methodology. That speaks that my equity is growing and is currently 30 % above in this little time, very nice, I think!
Nice work. There are more readers than posters on this thread. I am certain there are those that appreciate your detailed analysis.
Yeah Medisoft is doing a good job, a lot of people have taken your method and made it their own in different ways. MG I thought you had left these forums?
Thank you for your words! It is good to know that my work is helping others.
This is the analysis for today… well, I’m making it on Saturday, but is the same hehehe, market is closed.
[ul]
[li]NZDJPY bias long, nice green candle at close. It made a HL, encouraging me to continue without moving anything.[/li][li]AUDJPY bias long, also nice candle and a HL. It seems better than NZDJPY because my next resistance is farther. Not moving my stop.[/li][li]USDJPY bias long, made a HL but the next resistance could be the third test of that level, that poses some risk, but I’m not moving my stop yet because one thing is what I think and other what charts are showing.[/li][li]AUDUSD bias long. It made a double top, with two bounces on the same level, so I think it could be a buy if next candle closes green.[/li][li]CADJPY same as USDJPY.[/li][li]GBPJPY bias long. It closed above my entry, so on market open on Sunday, I will buy it.[/li][li]NZDCAD bias long. Conflicting candle signals. I need another signal to know what to do.[/li][li]AUDCAD bias change to long. Nice morning star pattern on a support! I’m going to buy on Sunday open. It is supposed that I should wait until another candle, but I’m looking a confirmation from the double top pattern. That is, the double top patterns seems to make a move of same pips from the neck to the top and from the neck to the bottom. Current low is the bottom and is almost the same 200 pips that the neck-top part made, so that is enough confirmation for me.[/li][li]AUDCHF bias change to long. It was stopped out for a +63.9 pip profit. I’m setting up my buy on Sunday open.[/li][li]NZDCHF bias long. The trade started very well as you can see on my open trades. Also, the correlation between this pair and AUDCHF make me think they are right in the track on the long side.[/li][li]GBPNZD bias long. It was stopped out for a -67 pip loss. I’m going to wait for a new entry signal.[/li][li]GBPAUD bias long. It was stopped out for a +222 pip profit. The candle at resistance managed to give a good true signal, and got me out almost on the top. I’m looking for a new entry point.[/li][li]CADCHF bias short. It is testing the resistance again. Next week I will see if my trade is good or not. If not, as always, I’m going to move my stop.[/li][li]GBPCHF bias long. My entry seems OK, and the trade moved my way from the beginning. Will see this week if it continue my way.[/li][li]EURJPY bias long. It is enclosed by a range, as much I want to trade it, I need to wait until it break and close the range. I’m waiting and holding my entry point at 131.42[/li][li]CHFJPY bias long. It is also enclosed in a range. What I’m noticing is that they both made a higher low. That could help me to know that the breakout (the real one) will occur on the long side, but until that happens, I’m waiting.[/li][li]EURAUD bias long. My entry didn’t work from the beginning. It is making a small retracement at the 61.8 % from current small swing. I’m still confident on the trade, so I’m not moving my stop.[/li][li]EURGBP bias short. It is moving my way (barely!) but made a lower high, and that inspires me confidence on the trade. My current stop is pretty small, so I’m not moving anything.[/li][li]GBPUSD bias long. It is managing to stay above my entry, and previous candle close was above a lot of closes before, that shows me that the pound is strong enough to continue and not doing anything to my stop.[/li][li]AUDNZD bias short. It made another candlestick that causes me to think it is time to move again my stop. I’m locking now +288 pip profit on the pair.[/li][li]EURNZD bias long. Current candle shows that there is enough support at this point. There is some risk that the sellers win this battle and the price drops, but current pattern is bullish for me. If next candle is green and big, this pattern could make a morning star, and that would reinforce my buy and my bias.[/li][li]USDCHF bias short. It was stopped out for a +73.8 pip profit. Current candle is a very nice spinning top / doji, it is located on a support / resistance level. I’m setting up a new short on it if it closes below 0.9339[/li][li]EURCAD bias long. Waiting for my entry.[/li][li]NZDUSD bias long. Price closed above my entry, so on Sunday open I will buy it.[/li][li]EURUSD bias long. Price managed to hold on a support and bounced on it. I will buy on Sunday opening again, I hope at the same or better place than previous trade.[/li][li]USDCAD bias long. Price is holding above my support / trend line. Waiting for it to close above my entry.[/li][li]GOLD bias short. It seems enclosed by a range. Will see if it manage to break it this week.[/li][/ul]
So far, it seems that the Yen is the weakest, the Loonie is also weak, at least weaker than the Buck, and this latest is also weaker vs majors. The pound is stronger than the fiber but both are strong enough to be on right up trend.
The following article was screen-captured from the May 2013 issue of [I]Currency Trader[/I] magazine.
This article examines a forex portfolio strategy which is similar in many respects to the methodology that we are using in this thread. The portfolio strategy detailed in the article has generated impressive positive results, and the article clearly validates the basic forex portfolio concept.
Here are some of the similarities and some of the differences between the strategy in the article (which I am calling the [I]Currency Trade[/I]r strategy) and mastergunner’s methodology (which I am calling the [I]MG Portfolio Strategy[/I]):
[U]The obvious similarities[/U]
Both strategies utilize a fixed set of trend-following rules to trigger entries and exits in multiple currency pairs.
Both strategies rely only on price action for signals, and neither strategy employs any sort of optimization techniques.
Both strategies achieve portfolio diversification, such that each portfolio exhibits less drawdown and lower volatility than its individual currency pairs exhibit.
In both strategies, portfolio ROI exceeds the sum of the ROI’s of the individual pairs, over the long term.
[U]The obvious differences[/U]
The [I]Currency Trader[/I] strategy employs relatively complex entry/exit rules based on the most recent 8 days of price action, and these rules are executed by algorithms. The [I]MG Portfolio Strategy[/I] employs discretionary trading, with rules defined by each individual trader, and entries and exits are manually executed with market orders, limit orders or stop orders.
The [I]Currency Trader[/I] strategy uses a portfolio of 3 pairs, but envisions expanding the scope to include a large basket of currency pairs and (possibly) also other financial instruments. The [I]MG Portfolio Strategy[/I] uses 28 currency pairs.
The [I]Currency Trader[/I] strategy is an “always in” strategy; that is, there is always either a long or short open position in each of the 3 pairs; a long exit automatically triggers a short entry, and vice versa. The [I]MG Portfolio Strategy[/I] (as most participants on this thread seem to be trading it) allows for exiting a position without reversing the position.
The [I]Currency Trader[/I] strategy establishes position sizes based on the 20-day ATR. The [I]MG Portfolio Strategy[/I] establishes position sizes based upon account equity at the time of entry.
I had to resort to 8 separate screen-shots in order to capture the 4-page [I]Currency Trader[/I] article. Babypips allows only 4 images per post, so the article had to be divided into two parts. It appears in the following two posts.[I][/I]
.
— continued in the next post —
— continued from the previous post —
