Written by Barry Battista
Monday, April 16th, 2012
4:30 AM EDT
UK CPI y/y – Change in the price of goods and services.
GBP/USD
This has not been a very good trade lately. I will not be getting up for it. We haven’t seen any appreciable deviations out of this for quite awhile. In fact this year row 1 has come out at 0 all 3 months. You probably need to see .3 or higher on row 1 to get a decent move out of it.
If you see more than about 50 pips of movement in the couple hours before the trade, you would be well advised to pass. The odds a Straddle trader will take a small loss are greater than taking a small gain.
ORACLE TRADER – set medium to .2 and safe to .3. Trade 1/3 your normal lots on a medium and 3/4 on a safe
STRADDLE V1.3 – set maxSpread to the normal spread on the GBP/USD for your broker + 1 pip.
STRADDLE PRO – set Buy/Sell Triggers to .2 and check the box. Watch out for pre-news spikes and don’t get in if you see anything suspicious.
9:00 AM EDT
CAD Overnight Rate – Interest rate at which banks lend to each other.
USD/CAD
Economists are in agreement on this. No change. A change would be a huge shock to the market but is highly unlikely.
ORACLE TRADER – set safe to .25 and trade full lots.
STRADDLE V1.3 – set maxSpread to 7 and buy/sellPips to 10. Get out within a couple seconds after the release time if you are not in. If you are in, and instantly up 50 to 75 pips, you will have had a good sign the rate changed. Might want to hold part of your order in that unlikely case.
STRADDLE PRO – set Buy/Sell Trigger to .25 and check the box. Set buy/sellPips to 10.
