It has been remarked on that in
yesterday’s commentary we seemed to be indifferent about whether the news
regarding Greece from the Eurogroup meeting in Brussels was good or bad. And
that is true. We wrote:
“That is, of course, unless some word leaks from the two-day
Eurogroup meeting in Brussels to the effect that talks have either broken down
or that a definitive resolution, agreeable to the beleaguered Hellenic Republic
as well as all the other Euro member states and the IMF, has been put in
place”.
The reason we can be so sanguine (from
a Forex trading standpoint – of course we would like the EU to continue and
prosper from every other point of view) is that the OmiCronFX Mandelbrot
algorithmic routine takes trades in either direction, long or short, as it
deems appropriate on the basis of the price movement right at the time of entry.
The problem was that on Monday (May
11th) the exchange rate action in the Euro / US dollar pair was in a
directionless, choppy state for the whole day. This led to a series of – small
- losses and a proportion of break-even trades. While the trading software must
be running, in order to catch the moves when they come, the Mandelbrot
algorithmic routine is designed to achieve the smallest losses possible under
the circumstances that pertained on Monday. There were no economic events that
might have caused a movement, but the market often does go up or down even in
that case. There were no significant market moving events yesterday, either,
apart from the knowledge of what had transpired in Brussels (which was minimal
– even the much lauded payment to the IMF by Greece has turned out to be from Greek
reserves which had been on deposit with, wait for it…, the IMF). Nevertheless,
the Euro / dollar pair started on an upward move towards the end of the Asian
session, which was built upon very nicely after the start in London.
Mandelbrot, happily, was there to jump on board for the ride.
All of this is captured in the
illustration at the top.
…with
apologies to Van the Man
We would like every day to be like
yesterday, with sweeping, trending exchange rate movement where one would only
have the pleasurable experience of wondering exactly where Mandelbrot might
decide to lock in profits. Unfortunately, Forex trading is not like that. There
will be days like Monday. As Van Morrison famously has it in his song:
“When
all the parts of the puzzle start to seem like they fit
Then
I must remember, there’ll be days like this”
Just so.
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