I thought I would continue from yesterday and try to conclude what I was writing about: an academic study testing “best of” momentum, where we look at a whole bunch of currency pairs and buy the one that has gone up the most over X months and sell the one that has gone down the most over X months. Hold for 1 month.
Yesterday I wrote about a basic strategy that has been proven to “work”: “best of” momentum, where we look at a whole bunch of currency pairs and buy the one that has gone up the most over X months and sell the one that has gone down the most over X months. Hold for 1 month.
These days I am fortunate enough to struggle with the issue of whether I make as much profit as I “should”. When I was starting out as a trader, and this might be familiar to some of you, I struggled with trying to break even, let alone actually pocketing any profit. I tried a whole lot of stuff and would arrive at a “tearing my hair out” moment where I wanted to yell “Can somebody just tell me what the hell works???”
A few days ago I wrote about how financial markets often get really quiet over the summer, especially during August when many market participants are away on holiday. Then as September gets underway, there are often some big moves which start a major multi-month direction.
As some of you have probably noticed by now, the question as to whether the FOMC will raise the U.S. interest rate again at its next meeting on 21st September – which is next week – is taking center stage in Forex market commentary.
When I first started trading back in the days of the early boom in retail Forex, the Euro – especially the EUR/USD currency pair – was a quite different beast to what it is today.
Last night I was reading a thread on a well-known Forex forum that was written by a guy who had developed his own Forex trend trading strategy. I got the feeling that he was a young and relatively inexperienced trader, but as rigid systems go, he had come up with a pretty good system and a good attitude. I wish him every success.
I was thinking this morning that it is easy enough to trade with the trend, but what about the times when there are no trends, or when everything is moving against the prevailing trend? Easy enough in the sense, by the way, that you can have some measurement to define a trend that is fairly simple to define and follow and that works over time.