Baruch's Forex System Journal

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Quote from Baruch:

14.30 GMT we will have some very important US numbers: GDP 1st revisions, jobless claims, personal consumption and - maybe the most important because of fear of inflation - core Price Deflator, PCE Index.. I April it was 0,2. But in March 0.4. Consensus is now 0.2. Greenspan will be watching this!

Any surprises will move the market.

Before that:

6.45 GMT France: Business Confidence and Production Outlook.

9,30 GMT UK: Consumer Confidence.
More...

Bad numbers from France.
 
From ET's chatroom I just got this method from Buk:

Trade the 00 numbers.

If GBP crosses 18200 going north:

buy 18210

Stop 18190

Add to new position the same way when it hits a new 00.

Only go short from 18190 if confirmed by double top etc.

Should work very well in a trending market. And your loss is limited to 20 pips.

---

Seems to be a very good - and simple, I love that - idea. I will test it. Old Livermore also traded the big 00 numbers in stocks.
 
Quote from globalfxllc:

In an effort to talk live about the FX market and answer questions about our programs we will be maintaining an FX chat on ET 24 hours a day 5 days a week. Just go to ET chat and come on in.
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I don't like chatrooms - but I like this one.
 
The round number strat is nothing new, in fact it's used quite extensively, particularly within the FX arena. I think most folks realise the potential/importance of these pyscho levels on the charts, and of course, you will experience whip around the 00 numbers as positions are entered/exited according to stops/limit orders.

Obviously, accompanying T/A will need to be confirmed, and as a trend following strat, it adheres well to most pairs (particularly cable - which I trade).....s/r levels from the larger time frames will identify likely entries & a simple trailing stop will help capture a good percentage of a quick clip thru the cent levels (this week being a good example)....

on a typical 3 - 4 cent clip, I would expect to get tipped out up to 5 times around the century numbers, entering again on a break of the higher high/lower low. Stops are generally trailed to 50 pips (dependant on the run), and scaled out on 150 pip clips up & down the ladder.....

obviously, this strat will kill you in a ranging mkt, but usually 2 - 3 entry attempts will highlight the fact that cable is in a ranging phase, and the intraday strat can then come into play.....like anything else, it'll work in good, trending phases, returning consistant profits if utilised with accompanying T/A.
 
Quote from Buk:

The round number strat is nothing new, in fact it's used quite extensively, particularly within the FX arena. I think most folks realise the potential/importance of these pyscho levels on the charts, and of course, you will experience whip around the 00 numbers as positions are entered/exited according to stops/limit orders.

Obviously, accompanying T/A will need to be confirmed, and as a trend following strat, it adheres well to most pairs (particularly cable - which I trade).....s/r levels from the larger time frames will identify likely entries & a simple trailing stop will help capture a good percentage of a quick clip thru the cent levels (this week being a good example)....

on a typical 3 - 4 cent clip, I would expect to get tipped out up to 5 times around the century numbers, entering again on a break of the higher high/lower low. Stops are generally trailed to 50 pips (dependant on the run), and scaled out on 150 pip clips up & down the ladder.....

obviously, this strat will kill you in a ranging mkt, but usually 2 - 3 entry attempts will highlight the fact that cable is in a ranging phase, and the intraday strat can then come into play.....like anything else, it'll work in good, trending phases, returning consistant profits if utilised with accompanying T/A.
More...

Thank you, Buk. If you don't mind, it could be nice to trade your system here realtime in this thread?
 
sure, no probs!....it's a simple enough strat to spot the entries etc...but (time allowing) I'll be happy to post entries & reasonings etc as they evolve!

an add in was initiated earlier this morning (6.00am bst) at 8210 on this run, with stop at 8190...

all stops have just been moved to 8210 (profit lock), which is a fib area on the 5 & below a recent pullback from the mornings high's.
 
Quote from Buk:

sure, no probs!....it's a simple enough strat to spot the entries etc...but (time allowing) I'll be happy to post entries & reasonings etc as they evolve!

an add in was initiated earlier this morning (6.00am bst) at 8210 on this run, with stop at 8190...

all stops have just been moved to 8210 (profit lock), which is a fib area on the 5 & below a recent pullback from the mornings high's.
More...

Thank you, Buk. We are looking forward to follow your system - and your comments.
 
it's fair to point out that many of these swing trades can evolve from an intraday strat. I use an 8 & 5 ema/21 ma cross confirmer on the 1 & 5 min frames, with an occasional glance at slow stochs (15/3/3), or if you prefer MACD.

it does produce quite a few signals, but once again, utilised with intraday/week s&r & fib clips, it can filter out trades.....paring out at acceptible profit targets & allowing remaining stakes to 'run' can often capture larger moves with a trailing stop....scaling in & out on century breaks (at the beginning of a trending move), will also help to "get in" on a nice run thru the levels.
 
Quote from Baruch:

14.30 GMT we will have some very important US numbers: GDP 1st revisions, jobless claims, personal consumption and - maybe the most important because of fear of inflation - core Price Deflator, PCE Index.. I April it was 0,2. But in March 0.4. Consensus is now 0.2. Greenspan will be watching this!

Any surprises will move the market.

Before that:

6.45 GMT France: Business Confidence and Production Outlook.

9,30 GMT UK: Consumer Confidence.
More...

Consensus for GDP: 4.6
C. for For Jobless Claims: 335K

A lot of numbers - so beware of whipsaws if you trade the news.
 
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