How the OmiCronFX Silver
Trigger algorithmic routine works
The Silver Trigger operates like a power tool for Foreign Exchange
trading. Just as a tradesman can now use a electric screwdriver to save wrist
strain, we use the Silver Trigger to save us mental strain in decided such
things as the amount of momentum that indicates the best time to enter a trade,
the optimum size for the position, the location of the Stop Loss order, the
point at which profit retention policy should come into play and the level of
risk that will be allowed to exist as a successful trade progresses.
All of these things support, over time, the idea that we must keep
probability on our side. As with all power tools, there is still a skill
required for the use of the Silver Trigger. It will not compensate for a
haphazard or lazy approach to trading. We must continue to do the homework.
This comprises of calibrating the program so that the criteria mentioned above
will be best suited to the different pairs that we study, as the best values do
differ from instrument to instrument, and in the study of the fundamental
analysis and the technical aspects that surround the whole question of price
movement.
Research here at OmiCronFX is continuous. We are conscious that the
optimum levels for the criteria mentioned above can change over time, so they
have to be monitored. We are also working at carrying out this analysis for
more pairs and, of course, we intend to extend the treatment to other
instrument classes in the future, for example to equity indexes, commodities
and derivatives.
Last but not least, we continue to develop other algorithmic tools to
assist in our trading, such as the Mandelbrot routine, which assists in the
identification of trends, their continuation and their changes of state.
Normal service is being
resumed on tapering
There is a real sense in the market this morning that the disappointing
Non-Farm payrolls figure of last Friday might turn out to be something of an
outlier. Policy is not made on the basis of single numbers, even if participants
in the various markets are prone to act as if that were the case. It is the
trend that matters, in terms of any metric you like, whether it is GDP,
interest rates, employment figures or anything else. Monthly employment figures
are notorious for being revised, which normally gets nothing like the attention
that the main announcement gets, and the latest ones could well have been
adversely affected by the severe weather that many parts of the US has been
experiencing.
Yesterday in the US
two members of the Federal Reserve, Lockhart from Atlanta
and Bullard from St. Louis ,
gave speeches which were to the effect that Friday’s employment results for
December would not stand in the way of tapering.
We will be monitoring the situation closely to determine the action to
be taken with regard to the currency pairs we watch, in line with the above. As
a consequence of yesterday’s comments on the Aussie against the Kiwi, AUDNZD,
we have taken a short position in this pair.
No comments:
Post a Comment