Fx futures Journal

I am posting a chart here of the weekly Aussie Futures. Longer term downside is still more probable than upside, but this trade is underperforming my other currency futures shorts. In fact Friday's settlement was .7505 which only has my second leg (where I rolled into Dec) at a 10 pip profit. (I took 122 pips profit in the Sept Contract and then rolled the short into Dec). Right now, with the strong weekly closing, it appears that the market is just coiling. I have decided to look at stepping aside for a bit. What I will do is watch the 60 minute chart which has some short bias to right now, and if the short bias does not continue, I will get out. Comments Welcome.
 

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Thanks for the charts and comments b1s2.

I find it hard to believe that nobody has commented or asked any questions reg your posts.

I do have a question, please feel free to correct me if I am wrong in my assumptions.

Mayor currency pairs all trade against a common currency, the dollar. Therefore it would be normal to have the same or similar type of signals coming from most of them at any given time. Like it is the case right now.

My question has to do with risk diversification and position sizing. Do you see each currency as an individual trade the same way you would a soybean trade? or are your currency trades all smaller in position size accordingly ?

Thanks!
 
Quote from optionpro007:

Thanks for the charts and comments b1s2.

I find it hard to believe that nobody has commented or asked any questions reg your posts.

I do have a question, please feel free to correct me if I am wrong in my assumptions.

Mayor currency pairs all trade against a common currency, the dollar. Therefore it would be normal to have the same or similar type of signals coming from most of them at any given time. Like it is the case right now.

My question has to do with risk diversification and position sizing. Do you see each currency as an individual trade the same way you would a soybean trade? or are your currency trades all smaller in position size accordingly ?

Thanks!
More...

Perhaps no one has an interest in the fx futures or my analysis thereof. I do still like to post it as I believe it is helpful to me.

In answer to the question about the dollar being the common denominator: Yes, these will typically move somewhat in tandem, but not to the same degree or perhaps not at all. I like to diversify these so that I have more likelihood of catching a good move amongst the majors as a whole. As far as size, I use the same size, I just spread it out over the currency futures that I have on due to the fact that they are all tied to the dollar. It makes for a more stable trade.
 
I would be inclined to think people are either shy or afraid to appear ignorant in a public forum, which is a pity. I believe all questions are good questions regardless of how brilliant they might appear on the surface.

If we can go back a sec, would it be fair to say that if my unit size to trade soybeans was 100 contracts, for currencies I would trade 25 contracts spread over 4 different pairs? Correct?

Have you ever looked into trading the other FX markets ? Do you have anything against trading for example the AUD/NZD pair ?

Thanks.

Quote from Buy1Sell2:

Perhaps no one has an interest in the fx futures or my analysis thereof. I do still like to post it as I believe it is helpful to me.

In answer to the question about the dollar being the common denominator: Yes, these will typically move somewhat in tandem, but not to the same degree or perhaps not at all. I like to diversify these so that I have more likelihood of catching a good move amongst the majors as a whole. As far as size, I use the same size, I just spread it out over the currency futures that I have on due to the fact that they are all tied to the dollar. It makes for a more stable trade.
More...
 
Quote from optionpro007:

I would be inclined to think people are either shy or afraid to appear ignorant in a public forum, which is a pity. I believe all questions are good questions regardless of how brilliant they might appear on the surface.

If we can go back a sec, would it be fair to say that if my unit size to trade soybeans was 100 contracts, for currencies I would trade 25 contracts spread over 4 different pairs? Correct?

Have you ever looked into trading the other FX markets ? Do you have anything against trading for example the AUD/NZD pair ?

Thanks.
More...

Well, the comparison would be that if I wanted to trade 100 currency contracts, then maybe 25 each over 4 currency futures. However, on must keep in mind that Canadian and Aussie ( which I covered today at .7520 for a 5 pip loss) have an 80 percent face value of the Euro . As far as the other markets, they are too illiquid for my taste.
 
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