As a result of the monitoring
that started after our blog post on October 17th (Aussie enters a zone of attrition), we set the OmiCronFX Silver Trigger algorithmic routine to only
take short trades during the Asian session on the 23rd October last. Then we
went to bed because the Asian session starts in the middle of the night where
we live.
We came to the trading
platform the next morning to find that not only had the pair in question, the
Aussie dollar against the US dollar (AUDUSD), changed direction, as we
suspected it might do, but the Silver Trigger routine had entered a trade,
price had gone to the first profit level that was programmed in, and it had
moved the Stop Loss order to break-even on the rest of the trade.
Since then the trade has
progressed further in our favour, to the point where we manually removed
another half of the remaining position. This was late on Friday, when it is
never entirely satisfactory to leave too much on the table as trading is not
possible on Saturday and until very late on Sunday evening , when New Zealand
opens for the new week. There could well be a retrace here, even if this new
downtrend proves to be a valid one (it could be a retrace itself and it is not
at all unknown for China
On a side note, the entry was
on the base of a pinbar (pinbars are explained here) on the four hour chart.
The Silver Trigger is not programmed to recognise pinbars but it is of some
interest that its algorithm, which is momentum-based, decided to enter a trade
at exactly the point where a pinbar watcher would have done so.
Compare the up-to-date daily
chart with the one in the post that signaled that a short trade
might be imminent, and you will see that while price is now respecting the 200
day SMA, it did not stop its rise at exactly that level. This only goes to
illustrate that Foreign Exchange trading is anything but an “exact science”.
All strategies must be designed to cater for this fact.
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