I’m using a trend following strategy and it has been very profitable for about a month but I noticed that from last week it has been losing more. I noticed that opportunities for this system aren’t as clear as they were before because it seems that most of the pairs are ranging and I figured that its losing because I’m using it in the wrong market conditions. Is the beginning of the month usually slow or does the market usually trend at a specific part of the month?
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I am actually trend strategy in the demo account. Hope well.
Hi racj17
I would always be careful 1st week of the month due to NFPR
It’s a high impact event that I wouldn’t trade without experience.
The whole week can be manipulated all the way up to the release time.
Remember reserving capital for more favourable moves is what you should aim for
DM
Different strategies work well in different mark conditions.
It is natural that your strategy may not work in a ranging market.
It is indeed interesting to question why the markets seem to be ranging at the moment but I suggest just staying out of them while the conditions aren’t right for your technique - either that or learn some new techniques for ranging markets e.g. scalping.
Harry
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I think you mean FOMC cos NFP was released last week.
Hi janey001
The US non - farm payrolls , or ‘NFPs’, is an official statistic released by the US Department of Labor, usually on the first Friday of every month.
Not sure what your exact strategy is, but you are right that it would not work in a ranging market, so i would assume the straegy takes into account the market structure to determine when it is trending.
Based on my experience the time of the month is not a factor in whether a market will trend or not.
Yes and it has already been released last Friday.
But I get ur view now,I thought you were advising him on what to do next but I get u are giving him reason for what happened.
Your last sentence is correct.
Ps- There are always different reactions to NFP which would mean different market conditions.
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The market is failing to trend right now. As one demonstration of this, note that all of last week’s Friday closing prices of the 28 major forex pair charts were within the previous week’s ranges. This is unusual, in fact I don’t remember ever seeing this before. It suggests that price action for the week comprised a retracement back against all of the prevailing trends, none of which were able to advance.
Thanks Guys, I’m going to look for more strategies that I can use in all market conditions to add to the trend following one I have now.
Mean Reversion works fairly well in ranging markets…
Thanks, I’ll look into that
What do you call it when the market is not trending?
Consolidating…
NFP is a very strange one, a damp squid or an volcano lol
there is a game within a game
a person can have a series of wins and later the weather changes and start losing money that he won
of course he or she will definitely think that he or she is not only wasting his time which is very valuable but also wasting money
the market is run by humans and if you study human behavior , motives you will conclude that the market is as unpredictable as human behavior
Markets won’t always go from one trend to another. You will always have periods of consolidation. The key thing if using a specific trend strategy will be spotting that and sitting on your hands until the markets indicates it is time to use the strategy again.
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Thanks Guys
Trend trading is a trading strategy that involves analysing an asset’s momentum in one direction and attempting to profit from it. When a security is going upward, trend traders take a long position. Higher swing lows and higher swing highs describe an upswing.