On May 15, 2009, the NFA instituted a no hedging rule that was bad enough. This means that you can not have multiple trades on one currency pair going in opposite directions (buy and sell open trades in the same currency pair at the same time).
Thus, I will have to transfer my accounts to SummerstreetFX as soon as possible. I don't really understand how they can get around these rules, but with multiple feeds or something, their platform does not have these restrictions. I will get the paperwork filled out tomorrow!
As to trading results, my results were not good today either. I did -45 pips on 5 trades, 3 positive, 2 negative, 1 trade still open. My open trade from yesterday got stopped out when the Great British Pound strengthened against the US dollar. The rest of the day was trying to make up for that, but with the FIFO rules, I could only essentially have one open trade at a time.
So the doji that happened yesterday did not reverse the market like I thought it would, at least not yet. Now, with the Non-Farm Payroll data announcement coming out on Friday morning, the next day and a half should be relatively flat. Traders must have patience, and that can be very trying!
Here are the daily stats for Wednesday, August 5, 2009.
| Open | High | Low | Close | Pip Interval |
| GBP/USD | 1.6936 | 1.7040 | 1.6899 | 1.6986 | 141 |
| EUR/USD | 1.4406 | 1.4446 | 1.4354 | 1.4402 | 92 |
| USD/JPY | 95.21 | 95.38 | 94.62 | 94.95 | 76 |
| GBP/JPY | 161.25 | 162.40 | 160.38 | 161.28 | 202 |
The Great British Pound had an unusual track today, pretty much an inverted W on a upward slope. It set a new double top again some 40 pips higher than yesterday. The Euro moved a little more than yesterday, but not much.
What this means:
This unusual but mainly horizontal movement will likely not change much until Friday morning with the Non-Farm Payroll data coming out. Watching these markets sometimes is like watching paint dry.
May the pips be with us!
The Pipmaster
Email: titangroupfx@gmail.com
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