Well after this I am beginning to think this triangular hedge in the Australian Dollar cross currency with the eur/usd has to be managed much different than the eur/gbp. It is far less mean reverting than the e/g and the moves it makes, even when you are 100% balanced seemed to be gigantic. It was about $7 profit with 0.01 on the b/s/s side of it...but then it moved all the way to over $16.
Oct 6, 2015
Hey forex traders. What a wonderful day. The sun is shining and profits are rolling in. Now this is probably the most dangerous feeling you can have as a trader, or the best. When your confidence is up you have to rely on what you have been doing to boost yourself up even more. However, getting cocky can cause you to stray from what got you here in the first place and then say goodnight.
at 1:57 PM
Oct 2, 2015
Wow, this was a wild couple of weeks. I managed everything as perfectly as I could given my entries. So this started off with the eur/aud currency hedge and I added a very small usd/cad short leg to that. The eur/aud side came back for a profit and I closed it, but it left me with the usd/cad short position all the way back from the middle of September.
at 8:58 AM
Sep 28, 2015
Well, today is Monday and if you look at the charts, you will think the market is ready to break down through to their new lows that were reached about a month ago. The market is overbought and there is plenty of room down for the SP's to 1,400. If that happens quickly, there will probably be some big spikes in the eur/usd if you are a forex trader. However, today we see barely any movement in currencies.
at 4:07 PM
Sep 25, 2015
Well it's mid-day on Friday and it has been an interesting week for my personal forex trading. The good part is I never legged out. That means I am learning from my previous mistakes within this triangular hedged trading strategy. However, I am naked short the usd/cad just as an opportunity play against it being at levels from 2003. I am small enough on that position that it isn't really killing my margin.
at 12:34 PM
I wish I knew this sooner, but I finally became an introducing broker to Tallinex. They offer clients with small and large account a chance to trade with inter-bank bid/ask rates. The cool thing with them is you can scale up depending on what kind of account you have.
at 10:12 AM
Sep 22, 2015
Well what a big drop in the eur/usd (300 pips) and gbp/usd (350 pips). Anyone with the sell side basket on is probably enjoying some profits. It shows how mean reverting the markets can be if you are using cross currency hedges. Anyway, for my account I had the wrong side on, but did enter after the first move down on Monday and have been stacking 0.01 lot sides on the entire position as I look to take off the naked usd/cad short.
at 3:49 PM
If you have been paying attention, my eur/aud cross currency hedge or basket as some call it has been a position in my forex account since last Wednesday. I did some safer management techniques on this new trade over the course of the last 5 trading days in order to safely turn a loser into a winner.
at 5:56 AM
Sep 18, 2015
Well after FOMC the aud/usd came blazing right back up to where it was sitting yesterday. However, I scalped another $17 with a 0.02 lot short in the usd/cad, which helped me move into profitable territory even though the initial triangular hedge is down about $30 on a 0.04 lot per side. The usd/cad is right back up a little higher than where it was when I sold it yesterday so I re-entered that short.
at 4:40 PM
Sep 17, 2015
Well as you know I am trying to slowly and methodically build my way up to $100k and then $800k within the forex markets. It's possible within a few years if done correctly and worth the work it takes to get there. The basic underlying theme of it is to take profits when they come and manage losing positions in a safe and mechanical way so they become profitable over time.
at 4:33 PM