Forex Trading February 2004
- Thread starter Newtron Bomb
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Quick update.
Short on Euro/$ triggered at 1.2664
Closed as per limit order at 1.2600
plus 64 pips
Had not realised that you cannot amend existing or enter new orders for the first 15 mins of trading with FXCM. So, without the orders put in just before Fridays close I could not have traded the move.
A few things learnt. This is a potentially useful trading method so long as you get the levels correct. More by luck (experience I would like to believe but then I'm kidding no-one) I got it right this time. No guarentee it would work every time. Don't be greedy with the profit target. Watch out for that 15 minute opening buffer zone.
Short on Euro/$ triggered at 1.2664
Closed as per limit order at 1.2600
plus 64 pips
Had not realised that you cannot amend existing or enter new orders for the first 15 mins of trading with FXCM. So, without the orders put in just before Fridays close I could not have traded the move.
A few things learnt. This is a potentially useful trading method so long as you get the levels correct. More by luck (experience I would like to believe but then I'm kidding no-one) I got it right this time. No guarentee it would work every time. Don't be greedy with the profit target. Watch out for that 15 minute opening buffer zone.
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And nice to see it occur in real time too.
I tried to place an order around the 80's shortly after it became clear where it was going. Message came back. Not open until quarter past. Very infuriating to watch. Even more infuriating for the chap who had the close order just outside the move. Get in all that profit, then watch it vanish right before your eyes.
So lessons learnt are:
Keep an eye on that diary.
And the hardest one. Don't overestimate the run. (Very hard to judge.)
I tried to place an order around the 80's shortly after it became clear where it was going. Message came back. Not open until quarter past. Very infuriating to watch. Even more infuriating for the chap who had the close order just outside the move. Get in all that profit, then watch it vanish right before your eyes.
So lessons learnt are:
Keep an eye on that diary.
And the hardest one. Don't overestimate the run. (Very hard to judge.)
darktone
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Glad to see you score JP, tell me, could you see the prices as they hit your positions around 6-7pm? i thought fxcm charts/prices start to tick from 10pm sunday either way...well played sir.
heres what happened to me last night
pasted from my post elsewhere.
cmc SB open thier trade desk at 10pm, they are there earlier but wont place trades before 10pm.
Now i had a long position in E$ at 12643 with a BE stop that was held over the weekend. The way i saw it was 50/50 chance that news would boost it one way or the other, i had a reasonable profit cushion from the BO trade so decided to let run. The market gapped down well below my stop so i tried to contact cmc. Got through around 9.30 to ask about how my stop would fire, to be honest the guy i spoke to was kinda vauge but lent to the "well, we open at 10pm so the prices you get will be post 10pm prices" side of things.
Came back to screen at 10.01 to cancel stop and place new orders. when i tried to cancel my stop(which had been fired 'ie turned blue' since the first price well before 10pm but hadnt been dealt) it got dealt! at the stop price of 43..now im fine with that as im flat on a 'supposed' gap (is it a gap? FX is 24/7) but wish they could be clearer. will phone again this am to ask further, but if this is policy then WELL DONE CMC..
either way...well played sir.heres what happened to me last night
pasted from my post elsewhere.
cmc SB open thier trade desk at 10pm, they are there earlier but wont place trades before 10pm.
Now i had a long position in E$ at 12643 with a BE stop that was held over the weekend. The way i saw it was 50/50 chance that news would boost it one way or the other, i had a reasonable profit cushion from the BO trade so decided to let run. The market gapped down well below my stop so i tried to contact cmc. Got through around 9.30 to ask about how my stop would fire, to be honest the guy i spoke to was kinda vauge but lent to the "well, we open at 10pm so the prices you get will be post 10pm prices" side of things.
Came back to screen at 10.01 to cancel stop and place new orders. when i tried to cancel my stop(which had been fired 'ie turned blue' since the first price well before 10pm but hadnt been dealt) it got dealt! at the stop price of 43..now im fine with that as im flat on a 'supposed' gap (is it a gap? FX is 24/7) but wish they could be clearer. will phone again this am to ask further, but if this is policy then WELL DONE CMC..
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nickerson334
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cmc
Hi darktone
I closed up on Friday but had a similar 'gapping' experience when SH was captured a few months ago. Sigh of relief to see my stops had been triggered!
I don't think there's any problem with CMC, that's been my experience so far. Any mistakes have always been corrected politely and effeciently over the phone. I think they treat you as you treat them. Do you know of any potential difficulties?
Just gone long at E/$ 1.2753 (would have prefered 1.2735!) , out at 1.2710 and 1.2850.
Hi darktone
I closed up on Friday but had a similar 'gapping' experience when SH was captured a few months ago. Sigh of relief to see my stops had been triggered!
I don't think there's any problem with CMC, that's been my experience so far. Any mistakes have always been corrected politely and effeciently over the phone. I think they treat you as you treat them. Do you know of any potential difficulties?
Just gone long at E/$ 1.2753 (would have prefered 1.2735!) , out at 1.2710 and 1.2850.
Hi darktone
FXCM don't update their prices until the 10pm open so I was watching pre-open through another site where the poster was using Oanda. This was indicating that E/$ was 100 pips down.
The actual open on FXCM was a bit of a wet squib. No gap. It lost a couple of points and then hung around the open for a few minutes and only then did it get some momentum and go. Once it was going it went very quickly.
I still had the long limit order in place and it was my attempt to delete/cancel this that brought the 15 minute wait to my attention.
I will try this trade again - an alternative will be when the E/$ has traded in a tight range (20 pips) for a few hours. It does this a couple of times a week so could provide some trades. I'll watch it over the next couple of weeks and see how it would do before placing any live trades.
I think the trick to this type of trade is to place the opening orders just far enough out to ensure they do not get triggered by noise and then place the closing orders close enough to ensure you probably get a return for the risk. Currencies are well suited to this type of trade as any meaningful move will probably be 100 pips or more which nicely covers the opening level hysterisis and leaves a good target level.
Stops are the grey area here. Too close a stop and you could be stopped out by noise before the move starts properly. Too wide a stop and the risk/reward ratio makes the trade unattractive. I was comfortable with the 35 point stop and 65 point target but feel that the stop could be tighter. I will have to monitor this as well.
FXCM don't update their prices until the 10pm open so I was watching pre-open through another site where the poster was using Oanda. This was indicating that E/$ was 100 pips down.
The actual open on FXCM was a bit of a wet squib. No gap. It lost a couple of points and then hung around the open for a few minutes and only then did it get some momentum and go. Once it was going it went very quickly.
I still had the long limit order in place and it was my attempt to delete/cancel this that brought the 15 minute wait to my attention.
I will try this trade again - an alternative will be when the E/$ has traded in a tight range (20 pips) for a few hours. It does this a couple of times a week so could provide some trades. I'll watch it over the next couple of weeks and see how it would do before placing any live trades.
I think the trick to this type of trade is to place the opening orders just far enough out to ensure they do not get triggered by noise and then place the closing orders close enough to ensure you probably get a return for the risk. Currencies are well suited to this type of trade as any meaningful move will probably be 100 pips or more which nicely covers the opening level hysterisis and leaves a good target level.
Stops are the grey area here. Too close a stop and you could be stopped out by noise before the move starts properly. Too wide a stop and the risk/reward ratio makes the trade unattractive. I was comfortable with the 35 point stop and 65 point target but feel that the stop could be tighter. I will have to monitor this as well.
nickerson334
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cmc
Yeah, their argument is that if they fix a market it's going to be noticed and traded back to correct levels by other traders.
Can't say I'm absolutlely convinced.
Anyhow at the moment, as the gap is closed, I'm trading Friday's 'flag' consolidation to the 1.2850 (or there about's) resistance. Got in a little to late for my liking but still within a reasonable P:L ratio so quite happy at moment. Stops below 1.2715 support.
Yeah, their argument is that if they fix a market it's going to be noticed and traded back to correct levels by other traders.
Can't say I'm absolutlely convinced.
Anyhow at the moment, as the gap is closed, I'm trading Friday's 'flag' consolidation to the 1.2850 (or there about's) resistance. Got in a little to late for my liking but still within a reasonable P:L ratio so quite happy at moment. Stops below 1.2715 support.
Newtron Bomb
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Newtron Bomb
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kjb
Yes sorry was a typo
Update
Didnt reach target.. clearly.
Forming a lower top, but 15 min consolidating between 1.89 and yesterdays hod 1.8939, a BO in eaither direction should be good
NB
Yes sorry was a typo
Update
Didnt reach target.. clearly.
Forming a lower top, but 15 min consolidating between 1.89 and yesterdays hod 1.8939, a BO in eaither direction should be good
NB
Newtron Bomb
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Newtron Bomb
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for now this pattern is looking ropey and a BO north is also lookin g most likely
Newtron Bomb
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short @ 1.8890
NB,
Would never have backed this play, I guessed the earlier low at 1.8663 would be the bottom for this session but there you go.
Was tempted to try a limit at 1.8660 when the fallback started but lacking anything tangible in the news I missed it. Now looking to see when this bottoms out for maybe a trip back up??
Kev.
ah. now I see, threats of ECB interest rate cuts sparked this. Damn this market is quick to respond!
Would never have backed this play, I guessed the earlier low at 1.8663 would be the bottom for this session but there you go.
Was tempted to try a limit at 1.8660 when the fallback started but lacking anything tangible in the news I missed it. Now looking to see when this bottoms out for maybe a trip back up??
Kev.
ah. now I see, threats of ECB interest rate cuts sparked this. Damn this market is quick to respond!
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Newtron Bomb
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kjb
There is nothing driving the markets atm, presume you meant 1.8863
heading down to my intial forst target area 1.88 may be a stalling point if a new low is made
Kind regards
NB
There is nothing driving the markets atm, presume you meant 1.8863
heading down to my intial forst target area 1.88 may be a stalling point if a new low is made
Kind regards
NB
NB,
Yes it was a typo, meant 1.8863 which was early low point today.
I could not see any strong reason to place a short at 1.8890, which you obviously could so well done.
I'm new at all this so please excuse my lack of proper terminology.
The 1.8660 was the start of the latest bull run yesterday so I meant that it might retrace back to this level so this was my limit or target on my trade. I am adjusting my stop loss contunually.
However, position looks way oversold now so I have stopped it. Now hoping for some kind of reversal on this and EUR/USD.
Kev.
Yes it was a typo, meant 1.8863 which was early low point today.
I could not see any strong reason to place a short at 1.8890, which you obviously could so well done.
I'm new at all this so please excuse my lack of proper terminology.
The 1.8660 was the start of the latest bull run yesterday so I meant that it might retrace back to this level so this was my limit or target on my trade. I am adjusting my stop loss contunually.
However, position looks way oversold now so I have stopped it. Now hoping for some kind of reversal on this and EUR/USD.
Kev.
