Last Updated on Tuesday, 28 February 2012 10:10
Written by Barry Battista
Tuesday, February 28th, 2012
As promised, here is the post for the Thursday trade.
4:28 AM EST
UK Manufacturing PMI – Level of diffusion index based on surveyed purchasing managers in the manufacturing industry.
GBP/USD
As the perceived strength of the UK economy goes, so too do all the UK trades. We printed money with this one for close to a year, but now are forced to watch it languish with the many other non-starters. It is unlikely I will get up at oh-dark thirty for this, though I would take a whack at it if I were already up.
In December it spiked a whopping 4 pips on a deviation of .6. Small deviation, small spike. In January it spiked 12 pips on a deviation of 2.3. Big deviation, small spike. In this case, it returned to zero within 10 seconds and then fell about 25 pips in the opposite direction. In February we saw an 11 pip spike on a deviation of 2. Big deviation, small spike. I lost token amounts on all 3 of these. Note the strong consistency in the size of the spike regardless of the deviation.
I would STRONGLY encourage all of you to download and install the new version (V2.36). It has some features that will help you on most trades, including this one. September was the last time I made anything on this, and I got pounded hard in October, though most of the loss was in the Futures market where I was overplaying my hand. When you make money 10 or 12 times in a row with a particular trade, you tend to get over confident. Such was the case in October.
ORACLE TRADER – stay in bed
STRADDLE V1.3 – set maxSpread to 5. If you are not in by 2 or 3 seconds after 04:28:00, get your trades out. If you get in, get out fast after the spike.
STRADDLE PRO – you can set Buy/Sell Triggers to 3 but do NOT check the box. This is done simply so the circle will light up red or green if the deviation is 3 or above, though you will likely have long been out of the trade by the time this happens. Those that have V 2.36, set timeToLive to 2 or 3. This will cause the EA to take your trades out 2 or 3 seconds after 04:28:00 if they are both still pending. I would use trade management and get out fast after the spike.
