The Single
Currency was vulnerable on Friday last in the wake of the press conference
remarks by the President of the ECB, Mario Draghi, on the day before (Thursday),
but because of the fall that occurred in the immediate aftermath of said
statements, there was also a distinct possibility that the pair could rise
again, as many such moves are overdone and shoot past the natural equilibrium
level when they first occur.
The
OmiCronFX Mandelbrot algorithmic routine is market neutral, which means that we
never make a judgement on the direction the market is likely to go in when it
starts trading for the day. Mandelbrot is designed to respond to the price action
at the precise time it enters a trade.
On Friday,
the day after the ECB monetary policy meeting, it turned out that the market
was a little confused at the start, during the London session. Mandelbrot
responded to this, and the result was two losing trades in EURUSD, but ones that were
well within its risk tolerance. Then, at around the start of the US sessions,
the big move occurred. It was to the downside, and Mandelbrot jumped on board.
The result was an outstanding trade that compensated, and then some, for the
two false starts in the morning.
Start of Winter Time in UK and
Ireland
The weekend
just gone marked the start of Winter Time in the UK and Ireland, which is
important to know as we must configure Mandelbrot to take such things into
account. Clocks went back one hour, but just to make life interesting, Summer
Time, or Daylight Saving Time, will continue in the US for another week. Clocks
go back the hour there on Sunday November 1st.
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