Engulfing Candles Archives - FXMasterCourse

March 1, 2016 by Corvin Codirla 1 Comment

Bullish & Bearish Engulfing Bars (Part III)

This is the third article in the series on trading the Bullish and Bearish Engulfing candle stick patterns. Following on from Part I and Part II, we will look at trading the short signals for AUDUSD, EURUSD, GBPUSD, USDJPY, and USDCAD. Let’s recap the results for the long side: We used hourly rolling bars to […]

February 23, 2016 by Corvin Codirla Leave a Comment

Bullish & Bearish Engulfing Bars (Part II)

This is the second article in the series of trading the Bullish and Bearish Engulfing candle stick patterns. Following on from Part I, we will actually perform some backtests using the results we found in Part I. In Part I, we split up the analysis for long and short trades separately. Here we will keep […]

February 16, 2016 by Corvin Codirla 3 Comments

Bullish & Bearish Engulfing Bars (Part I)

Many people ask if there are any particular technical setups that I like to look at and what the best way to trade them is. My all-time favorite heavily involves Support and Resistance levels, and using these as breakout levels. The art lies in finding them and then managing trades appropriately. In this article we’ll […]

Following from the previous article HFT from Your Livin Room I’m going to show you what the EURUSD price data from the 21st January, 2016, looked like post the ECB interest rate announcement and press conference. The focus will be in particular on the consistency of the price streaming of a retail broker, and how that led to the profits in the previous article. More importantly how you can follow along at the next news bonanza, the FOMC. As always the ECB circus comes in two acts. First …

ECB Market Dynamics on 21st January, 2016

Following on from the previous post on ADP and slippage I’m writing up this brief note to share the pain, and hopefully get the point across: leave the News Alone Please. One of my systems that trades the EURUSD currency pairs actively, operates using stop-orders to enter the market and associated protective stops to limit the losses. You might have guessed it’s a momentum based strategy. The issue here is that when the market gaps, or is too thin, the orders won’t get executed. And this …

Why Slippage Is Important -- Unemployment Impact on My Sanity

In this article I’ll follow up from Part I, on using the UK Services PMI to trade the GBP. The questions we’ll answer are:

What economic indicators for GBP are out there and which can we use?

How do you set up a macro system?

What does it mean to trade a basket of currencies against GBP, or is there a preferred pair to trade?

Let’s cover the main themes that affect the Foreign Exchange Rate:

Inflation: influences Central Bank behaviour, but also tells us about price increas…

4 Economic Indicators to help your Fundamental Trading of GBP– Part II

Backtesting and Over-Leverage are the bane of any systematic trader. A shout out to Peter who raised both these points on the previous article in the series: Trading Numbers So, what are the two issues we’ll address in this week’s article:

Look ahead bias, and is it really that bad?

Kelly is always touted as optimal. Is it really that optimal?

And to all those who don’t like spoilers: (2) will be covered in more detail later in this article series, so close your eyes; but foll…

Dangers of Backtesting, Over-Leverage and the Need for a Protective Stop

“Greed is good”, but one shouldn’t always assume that the counterparty won’t notice. Last Wednesday, 27th January 2016, was FOMC day, news event day, and the markets went ape. Following on from the previous articles the idea was to continue to exploit the observed quote outages and extract value. Turns out that (presumably as expected), brokers aren’t that slow on their feet. I was moved from B-book status (i.e. rookie / loser status) to A-book status. Let’s just say that exces…

FOMC Day: How the Golden Goose got cooked – Getting my A-book status