Forex trading update
I’ve been following the SuperWoodie CCI indicator for my forex trades, frequently entering during the early Asian session. So far this has shown to be profitable, with yesterday being the best so far (70 pips). I find that I tend to exit early when watching the 5 min chart for pullbacks. Right now that seems to be the only thing I need to work on with this strategy.
I’ve also been working on probability analysis of the markets. Over extented periods of time the market drifts towards a random set of data, but isn’t quite there. For example, 55% of the time the next bar will close opposite the current one (eg if the current bar is up 55% of the time the next will be down). In a truely random system that figure should be 50%. Perhaps my data set isn’t large enough? Or perhaps the market isn’t random as some claim. I’ll be taking Statistics I this semester. This time around I’ll be paying attention and hopefully I’ll learn some useful tools to help analyse the market.
Another thing I’ve been working on is analysing currency pair correlations. I compare two pairs and see how their movement is related. Pairs with one currency matching (such as GBPUSD and USDJPY) tend to follow the same pattern with some deviation. I’ve found that some pairs move before others! This acts as a predictive movement and can help forecast the next move. I’m still in the early stages of reviewing the indicator I’ve programmed but it looks very promising. I started a thread with charts to discuss it here on StrategyBuilderFX forums.
