Slippage Archives - FXMasterCourse

January 12, 2016 by Corvin Codirla 2 Comments

Why Slippage Is Important — Unemployment Impact on My Sanity

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 […]

January 11, 2016 by Corvin Codirla Leave a Comment

Market Reaction to NFPs on 8th January 2016

Following on in the series of Market Dynamics the NFPs presented a great opportunity to take a closer look at what happens during important news events. I’ve learned my lesson by now: don’t trade during news events. And this is especially true of stop orders in these situations. Price will just hop straight through. When […]

January 10, 2016 by Corvin Codirla Leave a Comment

Getting obsessed with news events: the AUDUSD and USDJPY during the 8th Jan PBOC fixing

PBOC fixings have become a fixture (at least for the last couple of days). With the big sell-off in the CSI China is trying to inject liquidity into the market and doing so in different ways. For the FX market it’s been a weakening of the reference rate. Here are the rates over the last […]

January 7, 2016 by Corvin Codirla Leave a Comment

More on Market Dynamics: AUDUSD and the PBOC

It’s only been the fourth trading day of 2016, but there is no shortage of surprises, volatility, and all round mayhem. Today the AUDUSD had two announcements which can be considered relevant. The first was at 00:30GMT, the Building Approvals number, and shortly after 01:15GMT the PBOC rate fixing for the CNY. The first announcement […]

January 6, 2016 by Corvin Codirla Leave a Comment

A Painful Way of Learning NOT to Trade the News: a Lesson for Day Traders: ADP Slippage and the EURUSD

Wouldn’t it be great to forecast what the outcome economic news-releases would be? News trading is a favourite for many traders, professionals and novice alike. For the long-term trader who holds positions over several days or weeks it might lead to clues as to the next big trend. For intra-day traders it can be a […]

In previous articles I’ve written about the idea of Kelly betting or using leverage to really boost the growth of your returns. I’ve also shown how different fundamental components work together to create an FX Benchmark index. This article is slightly different. I want to keep it KISS: “Keep It Simple Stupid.” I will show you how to combine several instruments (three in actuality), which will create a Hedge Fund Benchmark. And then we apply leverage to this index, and see wha… Read more

Money Growth: Trade it Like a Hedge Fund

“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… Read more

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

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… Read more

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

Investing in Bonds

Of all things on this planet?! Aren’t they boring? Not explosive enough? Isn’t this stuff what old people invest in? Also, aren’t they supposed to start to sell-off? And how do you get your hands on these over the counter instruments. In the first article of this series on Creating Profitable Trading Strategies we started with the premise that you need to look at assets and their underlying biases. We covered equities. They’re exciting. Buffett makes 19.1% a year on them. An… Read more

Why Would You Want to Invest in Bonds?

It’s only been the fourth trading day of 2016, but there is no shortage of surprises, volatility, and all round mayhem. Today the AUDUSD had two announcements which can be considered relevant. The first was at 00:30GMT, the Building Approvals number, and shortly after 01:15GMT the PBOC rate fixing for the CNY. The first announcement was followed by a slow 10 pip grind to the downside, followed by a retracement to 0.7084. The PBOC announcement was issued at 01:16GMT, on the back of which … Read more

More on Market Dynamics: AUDUSD and the PBOC

I’ve written several articles on what happens during news announcements, and associated quick trading strategies. But from a regular trader’s perspective, surely there must be another way to approach these things. In this article I’ll given an overview as to how to trade these news announcements in a slightly more leisurely way, and see if there is anything to be had out of trading against market hysteria. The instrument of choice will be the EURUSD, though you can pick any other inst… Read more

Trading News Announcements Systematically: EURUSD and Non-Farm Payrolls