@passyson

I think the USD/CAD spike was caused by the iranian oil minister who was suggesting for an oil cut of up to 700k b.p.d creating fear of the oil and this has sharply led to the situation of loosing around 50 pips to levels of even to 1.063 but i think after the economic data it would bounce back a bit to even 1.07 where i expect it would be resistance level for few min.


@NGAATU

Hi,

Am on tonicasert@yahoo.com though am very poor at replying yahoo emails due to some reasons.

Best option would be to post a query here and someone will definately answer.

Cable has started getting heavy support at 1.7780-90 level,with a double bottom in the last 1-2 hours. Once I exit my current short,will take a breather and wait for it to also take a breather (with some retracements of sorts).

Wallstreet has opened on a higher note with anticipated lower energy costs boosting co profitability and easing consumer spending concerns. USD may get some further boost. Lets see....

Seems like the USD is on another rally against the major currencies

Anyone who lives within their means suffers from a lack of imagination

Hi Tonicasert...

NZD/JPY did me well in the morning...exited before the spike.

Currently short AUD/USD and long USD/CHF...will let them run for the day obviously with my S/L in place.




Anyone who lives within their means suffers from a lack of imagination

@alala

Since you discussed the EDSAS system which you said you dont need to hastle enough i went down and looked at its behavior for the last two weeks or so and i have some few observations which i wanted to share with other colleagues and maybe you and others here in the forum can correct me where it is appropriate.

One thing i realized about the EDSAS is an arbitrage and as you explained you use the correlations of the EUR/USD,USD/CHF which is almost perfect negatively at around -93%.Thats absolutely factual. Again you gave an example of how it operates which i used in a demo account to monitor it,Going long EUR/USD USD/CHF,and Going short EUR/USD USD CHF at the same time. This as you said one correlation pair can go (+245 -215) a profit of +35 pips. In my observation practical for the last two weeks with the volatility in the market i realized the arbitrage can only reduced your losses well as recorrection will be done by the pairs(negative and positive) but i made this opinions:
- Arbitrage/correlations works well for huge funds who in turn use big lots size thats why they are used by big institutions as they can make a kill with the small difference by using big lot sizes but for an individual with small lot size or small fund it will only for minimizing his loss but wont make a lot.
example:
Since last week the EUR/USD was at 1.657 and the USD/CHF 1.0884 looking at the movement of the 2 pairs for long and short for three days you could see that even though there were correction in both long and short the profit which could be derived was not more than +30 pips and most of the times reducing,if it goes beyond 40 pips in profit thats something which you need to take fast.i.e long EUR/USD -$352 (114 pips) USD/CHF + 274 ( 97 pips),short EUR/USD +352 USD/CHF -274 there will be differences which will occur regarding the strength of the movement and this is why i noticed the profit will largely depend on the lot size in correlation as a person with maybe $500000 using 5 stand lots getting a difference of 35 pips will mean 35*50 or $17500 that will be good amount but for a person with $ 2000 as i tested with and uses only mini-lots and gets 35pips with a value of $2 it will be $70 in profit!! So it works well for huge funds and if its a small fund then it can be for minimizing losses.

2. There are opportunities like the spark of the dollar which i am sure everyone made hundreds of thousands as of now will be limited to a person as he cannot take a kill in a certain movement.i.e EUR/USD from 1.65 to level of 1.43 over 200 pips can only be enjoyed by a person who has taken fundamental direction but with the correlation it would maybe get 20pips due to the corrections its making itself for long and shorts.For a person with small funds it would only be an imagination as will realize small but less risky returns.

In conclusion i do think the arbitrage works well for huge funds thats why big institutions or well capitalized guys use them as they can maximize with the difference(using the lot sizes) but for a small trader to use it will only reduce him the losses he may have but will rarely capitalize on the huge gains which will occur in case of spikes as we are witnessing.AS arbitrage is a good thing absolutely but a trader needs to look at the fund volume and lot size as a small player will be not in a bad position in losses and risky but cannot gain much though.

This was my practical observation as i opened a sub-account with a demo account and took long(EUR/USD USD/CHF) on one account and short (EUR/USD USD/CHF) on another account simultaneously.

Another thing is that you dont need stop losses and take profit so i guess you can go to taita hills!!!

@ngaatu @passyson i am also checking on the correlations of the comdolls and will give you a feedback we share my observations.

Regarding the week i am more than happy for the USD.Laughing all the way to bank

HARD WORK,HARD WORK HARD WORK

@ngaatu,@passyson.Very well with the discussion. I have been with a certain firm website which caution against trading with news and have also checked it with baby pips and a guy who is training people and seen that it is dangerous as news is speculation and can go anyway and the spreads are also high so it is very risky.What is surprising me is that it seems as if you guys are trading on news?or what is the difference between trading with news and fundamentals?
Can someone help me out there?

Mchumia Juani hula Kivulini

@ngaatu
Appreciate your explanation.I think it is informative and i am getting the difference now.

Mchumia Juani hula Kivulini

@Timber et al,

I really cannot answer your questions during the week BUT will do so over the weekend as i have ample time to go through them (after watching Namibia lose to Wanga and company). I can see that Ngaatu and i think Toni are giving you proper advice so far.

Expect my additional comments over the weekend.


Anyone who lives within their means suffers from a lack of imagination

@passyson
Morning too. I also hit m S.L for the USD/JPYand AUD/USD for the EUR/USD AND USD/CHF i left it retracing itself back. I think the retail sales for the united states bypassed me.I woke up early in the asian session expecting the aussie trade balance which was negative at -717 and at least it gave some pips around 45 pips going short with the USD. I think the big things are the interest rate decision which i expect them to remain hold.
The NZD/USD has returned to its levels and it has already shedded about 40 pips to the USD.Not bad one.

I think you need to update us on the NZD/JPY more,i have not checked on the pair closely.

@NGAATU

- Can i be helped so that i could know the difference between the lots and units?
- what is the advantage and disadvantage of using big lots and small lots/units?
- The leverage which am seeing here in the platforms what is the essence of it as am seeing other brokers have leverage of upto 400 and others less to 50? what is the difference and their advantages????
- what is dealing desk and market maker??

Mchumia Juani hula Kivulini