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So Strobot took an AUDCHF short about 10 minutes ago.
Let’s look at his chart.
So we are firmly at the top and broken back into the SELL zone, the AUDCHF pair is coming back from being overbought so this looks like a big square up of the downward move. If this correction is over we will at least get 0.81785 for a target or maybe lower judging by the previous move. Our Heiken Ashi Sell signal appeared just at the right place.
So the yellow line is basically our signal line, the upper area above it is the sell zone, the lower is the buy zone, we don’t take trades outside that area. The Gold line is a daily MA that allows us to trade with the overall trend plus we are using RSI and currency strength (not shown on the chart).
Time will tell! But one thing I do know is it will be VERY VERY slow as the USA is having a lovely turkey thanksgiving dinner.
Here is the daily chart with the currency strength.
GBPUSD has been correction and strobot set up a short yesterday at about 11pm. We are sitting flat although showing signs of a move bearish, between the two lines the Robot will not trade because it indicates the possibility of a reversal from both the daily and hourly short term trends.
Although GBP had some good’ish results we really didn’t see a huge Rally into the no trade zone so I would imagine that any time soon it could be continuing below.
It would be so nice, wouldn’t it if we could start from 0.
New traders often don’t realise that every trade they place comes with a price, the spread, this means you will NEVER enter a trade in profit, for example, if your spread is 2 pips, it means that you have to do 2 pips profit BEFORE you get to take any money.
Thus, if you have 10 trades, you need to make 20 pips before those 10 trades are profitable. (note that spread differs between currency pairs, GBP is normally the most expensive).
To make things MORE difficult, the spread changes based on the movement in the market. Only by a small amount but it is worth noting that it DOES change.
Spread and Emotions
The problem with spread, is that it affects your emotions when trading. Always starting trades negative, if you don’t understand what spread is can be quite off-putting. When in fact it’s just part of trading. Part of the blessings of trading with a robot is that the robot has no emotions. So spread, or starting in a loss it doesn’t care about.
Does it matter?
When you understand it, not really, but brokers with terrible spread will make it harder to make profit if you are trying to take smaller pips, you want 10 pips, but you have to get 12.
When STRobot opens a basket of trades over a few hours, they can hang around the spread, today is an example, the markets are slow, we end up with 10 trades on just sitting still, hovering in a range of 10 pips. We know WHAT it should be doing but it just isn’t.
All you can do is wait for some volatility or participation in the market, when there is no news, this fuels this kind of market, added to that is if there is important news in the next 24 hours. The markets will go into the doldrums while they wait.
Good morning traders.
The markets are slow at the moment after a busy Sunday night. My USGFX Strobot managed to pull 383 pips so far so that’s not bad but we do seem to have settled into a slow waltz, this is probably as the markets are waiting for ISM Manufacturing @3pm GMT
STRobot’s method of basket trading has proved very effective.